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dalvyx [7]
3 years ago
5

What is the present value of a security that will pay $38,000 in 20 years if securities of equal risk pay 11% annually? Do not r

ound intermediate calculations. Round your answer to the nearest cent.
Business
1 answer:
leonid [27]3 years ago
3 0

Answer:

$4,713

Explanation:

The formula and computation of the present value are shown below:

= Future value ÷ (1 + rate)^number of years

= $38,000 ÷ (1 + 0.11)^20

= $4,713

This (1 + rate)^number of years is also known as the discount factor which helps to calculate the amount of the present value

We simply apply the above formula so that the accurate value can come

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Suppose the fed sells $50 million of government securities to the bank of America. complete the sentences. the fed's total assets increase by​ $50 million and its total liabilities do not​ change.

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2 years ago
Wu Production Company, which uses activity-based budgeting, is in the process of preparing a manufacturing overhead budget. Whic
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Answer:

Option which would likely appear on that budget will be:

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 Activity based budgeting which  is  a budgeting method in which firstly the overhead costs are being calculated and the the budgets gets created.

Batch-level cost is a cost which is not associated with any given specific individual units but is associated with a group of units.

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Another example can be be procurement costs. The expenses associated with the procurement costs include the  ordering of direct materials, paying suppliers and receiving goods.

Since all of the expenses are related to the orders placed numbers, they must be allocated not to an individual product but to group of unit.

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