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3 years ago

What is the present value of $900 annuity payment over 6 years if interest rates are 10%

Business

1 answer:

Rudik [331]3 years ago

8 0

Answer:

$ 508.03

Explanation:

To calculate present value of an annuity, N, we can use the formula;

$N=\frac{A}{(1+r)^n}$

From the question, the future value of the annuity is A=$900, the percentageW interest rate per compounding period is r=10%=0.1, and the number of deposit to be made in the annuity is n=6

We plug the values into the formula to get:

$N=\frac{900}{(1+0.1)^6} = \frac{900}{1.1^{6} } = 508.03$

Therefore the present value is $508.03

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A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units t

lutik1710 [3]

Answer:

It is more profitable to sell the units for scrap.

Explanation:

Giving the following information:

Defective units= 16,000 units

Selling price dor scrap= $2.60

Reworked cost= $4.80 each

Selling price= $8.10 each.

If the units are sold as-is, the company will be able to build 16,000 replacement units for $5.50 each and sell them at the full price of $8.10 each.

The cost of 16,000 units produced is a sunk cost, therefore, it shouldn't be a part of the decision making.

Sell as it is:

Sell scrap= 16,000*2.9= 46,400

New units= 16,000*(8.10 - 5.50)= 41,600

Total income= $88,000

Continue processing:

Reworked sales= 16,000*(8.1 - 4.8)= $52,800

It is more profitable to sell the units for scrap.

7 0

3 years ago

The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Acco

timama [110]

Answer:

The appropriate amount of Bad Debt Expense is $3,345.20.

Explanation:

The appropriate amount of Bad Debt Expense can be calculated as follows:

Bad debt expense = (Percentage of accounts receivable not yet due it will not collect * Accounts receivable not yet due) + (Percentage of receivables up to 30 days past due it will not collect * Amount of receivables up to 30 days past due) + (Parentage of receivables of receivables greater than 30 days past due it will not collect * Amount of receivables greater than 30 days past due) - Allowance for Uncollectible Accounts (credit) ……………………… (1)

Substituting the relevant values into equation (1), we have:

Bad debt expense = (7% * $7,500) + (20% + $2,300) + (46% * $2,000) - $400 = $3,345.20

Therefore, the appropriate amount of Bad Debt Expense is $3,345.20.

3 0

2 years ago

You bought a stock three years ago and paid $45 per share. You collected a $2 dividend per share each year you held the stock an

kakasveta [241]

Answer:

5.84%

Explanation:

We use the RATE function that is shown in the excel. Kindly find the attachment below:

The NPER shows the time period.

Given that,

Present value = $45

Future value or Face value = $47

PMT = $2

NPER = 3

The formula is shown below:

= Rate(NPER,PMT,-PV,FV,type)

So, the annual compound rate of return is 5.84%

5 0

3 years ago

Which of the following would help reduce the amount of frictional unemployment? Choose one or more: A. Websites that advertise j

Natali [406]

Answer:E. Websites that advertise job openings across the country

Explanation:

Frictional unemployment is a natural kind of unemployment when people are out of jobs temporally maybe because they left their unfulfilling jobs or their residential area has changed after they got married .

Some will leave their jobs because they are no longer happy and they have saved enough to survive whilst still searching for the jobs.

Some will leave because they have to take care of their loved ones until those relatives get better and they can return to the working industry.

These people can make use of the website to search for their next job.

3 0

3 years ago

When a commercial for men's razor blades demonstrate how the blades work to create the closest shave, the brand is using a _____

Ivenika [448]

Answer:

a) Informational

Explanation:

The company is using informational appeal in its advertisement to convince the buyers that they need the product and shows how it works. . This type of appeal informs customers of the features, quality and benefits of a product. The demonstration of how the blades work helps the potential customers to make a rational decision as it it portrays that the blades' function of the providing the closest shave is what they need.

4 0

3 years ago