If a document reaches you, and requires you to perform some action, you should do it immediately if ________. a. It is from your
2 answers:
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Answer:
Present value = $45,185,606
Explanation:
Data:
number of periods(n) = 17 years
First-year profit = $5 million
Growth rate = 2%
Interest rate = 10%
Present value = ?
Solution:
The present value of the growing annuity can be calculated as follows
Formula:
Let's denote
annual interest rate = x
annual growth rate = y
Present value = First-year profit x
Present value = $5,000,000 x
Present value = $5,000,000 x 9.03
Present value = $45,185,606
Answer:
$1,691,122
Explanation:
First, calculate the discount on the bond
Discount on the bond = Face value of bond - Proceeds from the bond = $17,200,000 - $16,904,864 = $295,136
Now prepare the bond amortization table
The Bond amortization table is attached with this answer please find that
Now calculate the Interest expense for 2021
Interest Expense = Interest Expense on June 30, 2021 + Interest Expense on December 31, 2021
Interest Expense = $845,493.63 + $845,628.31
Interest Expense = $1,691,121.94
Interest Expense = $1,691,122
