Answer:
The correct answer is A. $18,276
Explanation:
First you have to calculate how much you'd end up having at the end of the 25 years period in your savings account.
You calculate the total amount saved for each year, using the formula:
Where
is the total amount in the savings account for this period.
is the total amount in the savings account from the previous period.
is the interest rate.
are the annual deposits being made into the savings account.
Therefore for the first year you'd do:
For the second year:
And so on. You can help yourself calculate the value of this series using programs like Excel.
I have attached an Excel file that has a table with the savings values for each of the 25 years.
So, the 25th year you’ll have $365,529.70 in your savings account. Now you simply divide this number by 20 (that will be the number of years you’ll be withdrawing the same dollar amount from your savings account):
In conclusion, you’d be able to withdraw $18,276.485 each year for the following 20 years after the 25th deposit, if all withdrawals are the same dollar amount.
Answer:
$500
Explanation:
Damages refer to the financial loss suffered by a party to a breached contract. It occurs as a result of one party refusing to perform their obligation in the contract, causing injury and losses to the other.
Damages are the extra expense incurred by the offended party due to the breach of contract. The calculation of damages involves getting the difference between the market price and the contract price. For Diana, the damages will be the market price of $4.50, and the contact price $3.50. Because the books were 500, her damage would be 500 X 1 = $500.
Answer:
Adjusting entry the company made to record its estimated bad debts expense:
Bad Debts Expense 29,300
Allowance for Doubtful Accounts 29,300
Explanation:
The company uses the aging of receivable method to estimate uncollectible.
Estimated uncollectible would be $28,500
Before year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $800
Bad debts expense = $28,500 + $800 = $29,300
Adjusting entry the company made to record its estimated bad debts expense:
Bad Debts Expense 29,300
Allowance for Doubtful Accounts 29,300
Answer:
The correct answer is (a)
Explanation:
A mission statement is an important factor which helps a company to attract customers and show them why their company is different and competitive. A mission statement should include a description of product and services, and it should depict the importance of customers. It should also include little information regarding the competitors. Mission statement is the first thing customers notice when they visit a website.
Answer:
the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38
Explanation:
The calculation of the estimated price of the stock in 5 years is given below:
= 5th Year dividend ÷ (Required return - Growth Rate)
Dividend at year 5 should be
=Dividend at year 0 × (1 + Growth Rate)^5
= $8.69 × (1.061)^5 ÷ (0.11.5 - 0.061)
= $216.38
Hence, the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38
