Answer:
The correct answer is B.
Explanation:
Giving the following information:
Cash flow= $500
Number of months= 50
Monthly interest rate= 0.07/12= 0.00583
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {500*[(1.00583^50) - 1]} / 0.00583
FV= $28,928.06
Now, the present value:
PV= FV/(1+i)^n
PV= 28,928.06/(1.00583^50)
PV= $21,631.67
Answer:
Explanation:
Bonds are corporate debt units that are issued by firms inform of financial securities and are traded as tradeable assets. It is basically referred to as a fixed income instrument since bonds conventionally are paid a certain fixed amount of interest rate (coupon) to its respective debtholders.
going by the question Upon issuance, Ozark should
Credit premium on bonds payable $100,000
Because face value of bonds = $10 million but issue price is $10 million * 101 % i.e $ 10100000
So, premium = 10100000 - 10000000 = $ 100000
Answer:
The answer is $304,000
Explanation:
Barber's ending equity is:
Barber's beginning partnership capital balance for the current year plus share of partnership net income minus Barber's withdrawal
Barber's beginning partnership capital balance for the current is $314,000
Share of partnership net income
= $152,000 /2
= $76,000
Barber's withdrawal = $86,000
Therefore, Barber's ending equity is
$314,000 + $76,000 - $86,000
= $304,000
