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Snowcat [4.5K]
3 years ago
10

our uncle is about to retire, and he wants to buy an annuity that will provide him with $57,000 of income a year for 20 years, w

ith the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?
Business
1 answer:
Nonamiya [84]3 years ago
6 0

Answer:

It cost him 640,617 dollars

Explanation:

as the first payment start today we will calculate the present value for an annuity-due of 57,000 for 20 years discounted at 5.25%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 52,500

time 20

rate 0.0525

52500 \times \frac{1-(1+0.0525)^{-20} }{0.0525} = PV\\

PV $640,617

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Seidman Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $17 and has a contr
True [87]

Answer:

Effect on income= $115,000 decrease

Explanation:

Giving the following information:

Fixed costs= $45,000

Number of units= 20,000

Unitary contribution margin= $8

<u>To calculate the effect on income, we need to use the following formula:</u>

Effect on income=  decrease in fixed costs - decrease in contribution margin

Effect on income= 45,000 - 20,000*8

Effect on income= $115,000 decrease

4 0
3 years ago
Mittelstaedt Inc., buys 60 percent of the outstanding stock of Sherry, Inc. Sherry owns a piece of land that cost $207,000 but h
vovikov84 [41]

Answer:

A. $549000

Explanation:

Given information

Number of outstanding stock of Sherry, Inc = 60%

The cost of the land = $207,000

Fair value at the acquisition date = $549,000

By considering the above information, the value reflected in a consolidated balance sheet is $549,000.

The historical principle says that the fixed assets should be recorded at the purchase price or acquisition cost only and the same is to be considered

8 0
3 years ago
What item flows from the income statement to the statement of retained​ earnings?.
Reil [10]

Net Income flows from the income statement to the statement of retained earnings.

The balance sheet is balanced when net income from the income statement, less any dividends paid, is transferred to the retained earnings column. Additional connections- Long-term debt on the balance sheet is used to determine interest expenditure on the income statement.

Net income: In commerce, Net Income is the amount of cash left over on balance costs, like salaries and wages, the value of commodities or raw materials, and taxes, are paid. Net Profit is the amount that an individual keeps after paying taxes, insurance premiums, and retirement contributions.

Net Income.

To learn more about the question, please visit the following link:

brainly.com/question/14531265

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5 0
1 year ago
Pets Inc. makes 2 products, dog collars and cat collars. Each passes through the cutting machine, which is the binding constrain
maks197457 [2]

Answer:

Dog Collar 10,000 units

Cat Collar 15,000 units

Explanation:

We have only constraint of 2,000 hours on the cutting machine.

First we will calculate the Contribution margin per hour

Contribution margin per hour = Contribution margin per unit / Numbers of hours required per unit

Dog Collar = $10 / (6/60)hours = 10 / 0.1 = $100 per hour

Cat Collar = $8 / (4/60) hours = $120 per hour

Pets Inc. will make Cat collar more than dog

Hours required for 15,000 unit of Cat Collar = 15000 x 4 / 60 = 1,000 hours

Hours for Dog Collars = 2,000 - 1000 = 1000 hour

Unit of Dog Collar = 1000 hours / (6/60) = 10,000 units

5 0
3 years ago
Types of Control Systems Controlling is one of the basic functions of management. It is critical to an organization's effectiven
Annette [7]

Answer: Option D

Explanation: In simple words, controlling refers to the function of management in which manager sets the standards of performance, compares the performance with the standards and take corrective actions in case of any discrepancy.

Controlling helps the organisation to achieve its goals by making the employees working towards the same goal determined in the planning stage. Controlling sets the standards of performance for the employees which works as a guide in their job.

Hence the correct option is D.

5 0
3 years ago
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