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Vladimir [108]
3 years ago
13

The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years an

d an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest.
Business
1 answer:
sdas [7]3 years ago
4 0

Answer:

Liability will be $2,030,412

Explanation:

We need to calculate the present value of future cash flows in order to determine the liability value.

Liability to be recored = PV of $200,000 payment for 10 years at 6% + PV of $1,000,000 at the end of year 10 at 6%

As we know the payment of $200,000 for 10 years is the annuity payment.

Liability to be recored = $200,000 x ( 1 - ( 1 + 6% )^-10 /6% + ( $1,000,000 x ( 1 + 6% )^-10

Liability to be recored = $1,472,017.41 + $558,394.78 = $2,030,412.18

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kobusy [5.1K]
First drop down box: Mission
Second drop down box: Measurement
4 0
3 years ago
According to a survey of American households: The probability that a household owns 2 cars, if annual income is over $25,000, is
vladimir1956 [14]

Answer: 0.48

Explanation:

P(A/B) = P(AnB)/P(B) where:

P(A/B) = The probability of event A occurring given that B has occurred.

P(AnB) = The probability of both events A and B occurring.

P(B) = the probability that event B occurs.

So let

P(A) = Probability that the residents of a household own 2 cars.

P(B) = Probability that the annual household income is greater than $25,000.

The question tells us that

P(A/B) = 0.8

Note that: P(A) = 0.7, P(B) = 0.6.

Since we want to work out P(AnB), because it gives the probability that residents have an annual household income over $25,000 and own 2 cars.

We would Rearrange our initial equation to make P(AnB) the subject formula becoming;

P(A/B) = P(AnB)/P(B)

P(B)*P(A/B) = P(AnB)

So, inserting our probabilities into this equation gives:

0.6*0.8 = 0.48

8 0
3 years ago
Solve the problem using 6.2%, up to $128,400 for Social Security tax and using 1.45%, no wage limit, for Medicare tax.
bekas [8.4K]

$3878.55

Explanation:

Step 1 :

It is given that Kristy has a biweekly gross earnings of $1950.

Since it is bi-weekly payments there are 26 payments in the year.

Gross earnings per year = 1950 * 26 = $50,700

Step 2 :

It is given that the social security tax is 6.2% up to $128,400. Kristy's earnings of 50,700$ does not exceed the threshold $128,400, hence 6.2% of her entire income is subject to social security withholding.

Social security withholding = 6.2% of 50,700 = 6.2*50700/100 = $3143.40

Step 3 :

It is given that Medicare tax is 1.45% with no wage limit

Medicare withholding = 1.45% of 50,700 = 1.45*50700/100 = $735.15

Total withholding = Social Security withholding + Medicare withholding 3143.40 + 735.15 = $3878.55

7 0
3 years ago
A wedding party hired a sole proprietorship to cater their wedding. In this situation the sole proprietorship is a partnership,
Kruka [31]

Answer:

False

Explanation:

A sole proprietorship is owned and managed by a single person. The owner is responsible for all the decisions and actions of his or her business. The owner may hire workers to assist in running the business. The workers remain workers and not partners in the business.

The law does not distinguish between the business and the owner. Any liabilities arising from the business are considered to be the owner's liability. In this wedding situation, the sole proprietor is solely responsible for the mistakes of his assistant.

7 0
3 years ago
You have been pricing an MP3 player in several stores. Three stores have the identical price of $500. Each store charges 24 perc
Alja [10]

Answer:

Store A = $9

Store B = $8

Store C = $10

Explanation:

Finance charges calculated by average daily balance finance charges basis, adjusted balance method finance charges basis and Previous Balance Method Finance Charge basis is calculated as follows

Store A:

Average Daily Balance Finance Charge basis = ($500 + $400) /2

Average Daily Balance Finance Charge basis = $450

Finance Charges = $450 x (24% / 12)

Finance Charges = $9

Store B:

Adjusted Balance Method Finance Charge basis = $500 - $100

Adjusted Balance Method Finance Charge basis = $400

Finance Charges = $400 x (24% / 12)

Finance Charges = $8

Store C:

Previous Balance Method Finance Charge basis = $500 - $0

Previous Balance Method Finance Charge basis = $800

Finance Charges = $500 x (24% / 12)

Finance Charges = $10

3 0
4 years ago
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