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mariarad [96]
3 years ago
14

Travis International has a debt payment of $2.34 million that it must make 6 years from today. The company does not want to come

up with the entire amount at that time, so it plans to make equal monthly deposits into an account starting 1 month from now to fund this liability. If the company can earn a return of 5.33 percent compounded monthly, how much must it deposit each month
Business
2 answers:
Nataliya [291]3 years ago
7 0

Answer:

$27,692.31

Explanation:

Principle amount = $2.34 million = $2,340,000

Time, n = 6 years = 72 months

Rate of interest = 5.33%

Monthly rate of interest, r = 5.33% ÷ 12 = 0.44% = 0.0044

Compounded monthly

FV of Annuity = ( Monthly deposits ) × { [ ( 1 + r )ⁿ - 1 ] ÷ r }

or

$ 2,340,000 = ( Monthly deposits ) × { [ ( 1 + 0.0044 )⁷² - 1 ] ÷ 0.0044 }

or

$2,340,000 = ( Monthly deposits ) × { [  1.3718 - 1  ] ÷ 0.0044 }

or

$2,340,000 = ( Monthly deposits ) × [ 0.3718 ÷ 0.0044 ]

or

$2,340,000 = ( Monthly deposits ) × 84.5

or

Monthly deposits = $27,692.31

disa [49]3 years ago
4 0

Answer:

P = $27,692.307

Explanation:

GIven data:

debt payment is $2.34 million

duration of debt 6 year

future value is 2.34 million

rate is 5.33% per annum = 0.44% per month

annuity formula is given as

FV = \frac{P \times [(1+ r)^{n} -1 ]}{r}

2340000 = \frac{P \times(1+0.0044)^{72} -1]}{0.0044}

\frac{2340000 \times 0.0044}{0.3718} = P

P = $27,692.307

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The ________ innervation of the kidneys reduces urine production, while the function of its ________ innervation is unknown
mrs_skeptik [129]

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Answer:

Explanation:

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= $4,000 + $22,000 - $4,500

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(b) In the income statement, the total revenues and the total expenses are recorded.  

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And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.  

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

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Answer:

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