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Lerok [7]
3 years ago
10

Graham receives $640,000 at his retirement. he invests x in a twenty-year annuityimmediate with annual payments and the remainin

g $640, 000 − x is used to purchase a perpetuity-immediate with annual payments. his total annual payments received during the first twenty years are twice as large as those received thereafter. the annual effective interest rate is 5%. find x.
Business
1 answer:
sergeinik [125]3 years ago
3 0
<span>For the amount invested in the 20 year annuity immediate,

the return will be;
 r/(1 - (1+r)^-n) = 0.05/(1- 1.05^-20)
= 0.0802425872
= 8.02425872% 

Now, return on perpetuity-immediate = 5% 

So, 5% + </span>8.02425872% = 13.02425872<span>

for equal returns from both investments,
X = 5/(13.02425872) x 640,000

= $245,695.365 

= $ 245,695.36 </span>
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Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivab
Zigmanuir [339]

Answer:

(a) Barton's investment

Date   Account Titles and Explanation               Debit       Credit

          Accounts receivables                              $44,900

          ($48,000 - $3,100)

          Equipment                                                 $90,000

                 Allowances for uncollectible                               $1,300

                 Barton Capital                                                       $133,600

           (To record Barton's contribution)

(b) Fallows' investment

Date   Account Titles and Explanation               Debit       Credit

          Cash                                                           $28,700

          Merchandise Inventory                             $60,500

                  Fallow Capital                                                      $89,200

           (To record Fallow's contribution)

3 0
3 years ago
A company needs 550,000 items per year. It costs the company $330 to prepare a production run of these items and $5 to produce e
Svetlanka [38]

Answer:

Company A

The number of items that should be produced in each run to minimize total costs of production and storage is:

= 22,000 units

Explanation:

a) Data and Calculations:

Total annual demand = 550,000 units

Cost per production run = $330

Cost per unit = $5

Storage (holding) cost per item = $0.75

The number of items that should be produced in each run to minimize total costs of production and storage is given by Economic Order Quantity (EOQ) formula

= square root of (2 * 550,000 * $330)/$0.75

= square root of $363,000,000/$0.75

= square root of 484,000,000

= 22,000 units

6 0
2 years ago
Ten-year-old sarah and 5-year-old haley were making a special birthday card for their grandmother. by patiently showing haley ho
Helga [31]

Answer:

This is true

Explanation:

Sarah illustrated scaffolding for Haley by supporting her through learning when putting lace around the card's edge.

4 0
3 years ago
Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on
Vanyuwa [196]

Answer and Explanation:

  • Consumer as well as government overall expenditure seems to be a significant determinant of economic growth during a market. Unless the overall spending increases, the demand changes positively.
  • Hence, just before the total individual and corporate expenditure in something like a firm increases, it demonstrates that perhaps the country's affairs cycle is going to expand, and then when total expenditure drops significantly, it illustrates that the financial sector's business period is going via compression.

So that it is the right answer.

5 0
2 years ago
On January 3, 2018, Austin Corp. purchased 25% of the voting common stock of Gainsville Co., paying $2,500,000. Austin decided t
monitta

Answer:

The total amount of excess amortization for Austin’s 25% investment in Gainsville is $30,000.

Explanation:

total proportions from building, equipment and franchises

= building proportion over 10 years + equipment proportion over 5 years + franchises proportion over 8 years

= ($ 500,000 - $ 400,000)/(10) + (1,300,000 - 1,000,000)/(5) + ($ 400,000-$0)/(8)

= $100,000/10 + $300,000/5 + $400,000/8

= $10,000 + $60,000 + $50,000

=$120,000

Excess Amortization = 25%(total proportions from building, equipment and franchises)

                                  = 25%($120,000)

                                  = $30,000

Therefore, the total amount of excess amortization for Austin’s 25% investment in Gainsville is $30,000.

3 0
3 years ago
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