Answer:
$ 4242.76
Explanation:
Annual payment = rP / (1 - ( 1 + r)^-n)
r = rate = 9.5%
P = the amount borrowed = $ 21000
n = number of years
Annual payment = 0.095 ($ 21 000) / ( 1 - (1 + 0.095)⁻⁷ ) = $ 4242.76
If Ray earns $900 a week and deductions are 28% Ray's take home pay is:
$648 a week
If we assume that the deductions of 28% are taken out of the $900 weekly we will multiply 900 by 0.28 = 252. Then subtract 252 which is the deduction amount from the 900 and we end up with take home pay of $648.
Answer:
A) If he thinks that strategy will boost sales, he's cray-cray.
Answer:
As a result of an increase in the YTM, the price of the bond will fall $4677.19 from to $4593.67
Explanation:
The bonds are valued or priced based on the present value of annuity of interest payments and the present value of the principal. Based on the YTM of 7.8% the bonds are priced at,
coupon payment = 5000 * 0.067 *1/2 = $167.5
Semiannual YTM = 7.8 *0.5 = 3.9%
Semi annual periods to maturity = 8 * 2 = 16 periods
Old Price = 167.5 * [( 1 - (1 + 0.039)^-16 + 5000 / (1+0.039)^16
Old Price = $4677.19
New semiannual YTM = 8.1% / 2 = 4.05%
New Price = 167.5 * [( 1 - (1+0.0405)^-16) / 0.0405] + 5000 / 1.0405^16
New Price = $4593.67
<u>Solution and Explanation:</u>
The following formulas will be used in order to calculate the accounts receivable turnover ratio and in order to find out the number of days collect.
Accounts receivable turnover ratio = Net sales divided by Average net Accounts receivable
![=\$ 50,370 /[(\$ 7,250+\$ 5,720) / 2]](https://tex.z-dn.net/?f=%3D%5C%24%2050%2C370%20%2F%5B%28%5C%24%207%2C250%2B%5C%24%205%2C720%29%20%2F%202%5D)
= 7.77 times
<u>Days to collect</u> = 365 divided by Accounts receivable turnover ratio
= $365 divided by 7.77
= 47 days
<u>Note</u>: The number of days that has been assumed is 365 days
