Answer:
PV= $90,990.39
Explanation:
Giving the following information:
Future value= $140,000
Number of periods= 5 years
Rate of return= 9%
<u>To calculate the price to pay today, we need to calculate the present value. We will use the following formula:</u>
PV= FV/(1+i)^n
PV= 140,000 / (1.09^5)
PV= $90,990.39
Answer:
Descriptive Statistics
Explanation:
Descriptive Statistics is a technique in which data is collected and then analysis is made on the selected data through numerical techniques or graphs. In the given question the students have selected stocks and are analyzing its performance through graphical and numerical technique. This is descriptive statistics.
Answer:
Ans. A) $9,314.45
Explanation:
Hi, first we have to bring to present value the monthly payments to be made for 30 years (360 months). In order for this to be useful, we have to convert this annua compounded monthly rate (6.25%) to an effective rate, that is 6.25% / 12 = 0.5208%. Now, when we find this present value, we are going to substract it from the price of the house and that is the value of the down payment. But let´s just go ahead and do it together.
We have to use this formula to bring to present value the $1,595.85 monthly payments, for 30 years (360 months) at a rate of 6.25% (0.5208% monthly).

It should look like this


Now, let´s go ahead and find the down payment.


So, the answer is a). $9,314.45
Best of luck.
Answer:
Date Account title and explanation Debit Credit
March 1 Equity investment $32,000
($612,000/17%)*8% - $256,000)
Unrealized holding gain $32,000
(To adjust the value of equity investment)
Note: On 1 march, value of the investment value is increased which is unrealized based on 31 December fair value