Answer:
Present value of interest is $5,062 and future value is $5,796
Explanation:
The formula for finding the Present value of the interest reported as revenue is calculated as under:
Present Value of $40,000 receivable in 2 years = $40,000 / (1+7%)^2
Present Value of $40,000 receivable in 2 years = $34,938
The difference of the future value receivable and present value of the future amount receivable is the interest's present value which is given as under:
Interest Present value = $40,000 - $34,938 = $5,062
Using the compounding formula, the future value of the interest that will be recorded in the financial statement will be = $5,062 * (1 + 7%)^2 years
Future value of interest = $5796
Answer:
the answer is natural;human
Answer:
The correct answer is A: interest= $21048
Explanation:
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. While each periodic payment is the same amount early in the schedule, the majority of each payment is interest; later in the schedule, the majority of each payment covers the loan's principal.
Each payment is the same ($49,148), but the proportions of interest and capital pay changes. The interest proportion decreases from pay to pay.
Loan= 186000
i= 15%
n= 6 years
First pay:
i=186000*0,15=27900
amortization= 49148-27900=21248
Second pay:
i=(186000-21248)*0,15=24712
amort=49148-24712=24436
Third pay:
i=(164752-24436)*0,15=21048
amort=49148-21048=28100
While payments progress, interest decreases and amortization increases.
Answer:
$31,920,341.91
Explanation:
The computation is shown below:
For computing the receiving amount in 2052 first we have to determine the rate which is shown below:
Current value = Initial value × (1 + interest rate)^time period
$1,480,000 = $115 × (1 + interest rate)^114
So, after solving this, the interest rate is 8.654%
Now the received amount in 2052 is
= $1,480,000 × (1 + 0.8654%)^37
= $31,920,341.91
The time period is come from
= 2015 - 1901
= 114
And, the 37 years is come from
= 2052 - 2015
= 37
Answer:
revenue bonds
Explanation:
A revenue bond is a Municipal bond used to fund projects that yield income and are secured through a particular source of revenue.
Characteristics of revenue bond.
1. It takes long time to maturity.
2. It yields more returns than the general obligation bond.
The purpose of a revenue bond is so that government can finance projects that generates income such as toll roads, airports, seaports, electricity projects, water projects etc.
