Answer:
$1,067,477.62
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
PV of annuity = $100,000 x [ ( 1- ( 1+ 8% )^-5 ) / 8% ]
PV of annuity = $1,067,477.62
According to my calculations, in order to be able to withdraw $100,000 from an annuity earning 8% at the end of each of the next 25 years, the amount you would need to deposit now would be $1,067,477.62.
Answer:
13.33%
Explanation:
The computation of the equivalent taxable yield is shown below:
Data provided in the question
Coupon rate = 8%
Combined tax bracket = 40%
So, the equivalent taxable yield by using the above information is
= (Coupon rate) ÷ (1 - tax rate)
= 8% ÷ 1 - 0.40
= 8% ÷ 0.60
= 13.33%
Basically we divide the coupon rate by the percentage after considering the tax rate
The first thing that Caroline should do is: disclose the violation in accordance with policy to the appropriate person in her firm.
<h3> AICPA interpretation</h3>
Based on the scenario she should disclose the violation in accordance with policy to the right person.
Which is why AICPA code of professional conduct was created so as to ensure that accountant or professional accountant comply with independence rule.
Therefore she should disclose the violation.
Learn more about AICPA interpretation here:brainly.com/question/22596931
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