Longley Trucking is issuing a 20-year bond with a $2,000 face value tomorrow. The issue is to pay an 8% coupon rate, because tha
1 answer:
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Solution :
Given :
James needs $ 1,000,000 after 15 years.
His IRA deposit is $ 200,000 and is earning at the rate of 8% per annum.
Maturity value of $200,000 after 15 years =
= $ 634,434.
Balance fund needed after 15 years = 1,000,000 - 634,434
= $ 365,566
Therefore, the future value of the annuity is :
Here, FV = future annuity value = 365,566
A = periodical investment
k = interest rate = 8%
n = period = 15 years
∴
A = 13,464
Thus, James needs to save $ 13,464 each year end to reach his target.
Answer:
net capitalized cost is = $450000
so correct option is b. $450,000
Explanation:
given data
capitalized software costs = $600,000
expected total sales = 10%
sale = 4 year
net realizable value = $480,000
solution
we find out net capitalized cost of computer software that is
net capitalized cost of computer software is = Year 1 balance - Year 2 amortization ........................1
here we get first Year 2 amortization that is
Year 2 amortization is = capitalized software costs ÷ total projected sale ..............2
put here value
Year 2 amortization =
Year 2 amortization is = $150,000
so here we get net capitalized cost
net capitalized cost is = $600,000 - $150,000
net capitalized cost is = $450000
so correct option is b. $450,000