Answer:
The offer should be accepted
Explanation:
It is known that the amount $100,000 will be paid to someone when he turns 26 years. The current age is 21 years.
the 5-years bond is given 3.1 percent of interest rate.
another option for the person is offered $103,021.02 right away which is the present value.
The present value of the $100,000 that is going to be received after 5 years is calculated as follows;
Present value = Amount to be received /(1+interest rate/100)^t
= 100,000/(1+ 3.1/100)⁵
= 100,000/ 1.031⁵
= $85,843.35
Therefore, the present value is $85,843.35 for the amount $100,000 to be receive after five years.
Since the amount $103,012.02 he was offered is greater than the present value of his inheritance after 5-years, the person should accept the offer and forget about the inheritance of $100,000.
Because the people selling it needs to make profit.
Answer:
B. is able to accumulate tax-free interest earnings on cash values.
Explanation: whole life insurance policy also known as permanent life insurance,is an insurance policy where people who buy the policy are deferred from paying tax,this policy ensure that you pay the same amount of premium throughout the policy,it is a policy that is not termed and it doesn't expire it can last up to 120years.
Answer:
d) overapplied $160
Explanation:
$35,000 expected overhead / 5,000 machine= 7 dollar per machine hour are spend on overhead
<em><u>applied overhead:</u></em>
4,980 x 7 = 34,860
<u><em>actual overehad:</em></u> 34,700
As the amount of cost enter by the accounting are above the real cost, we are going to increase the manufacturing overhead cost and making the net income lower for this particular reason.
