Answer:
$77,217
$11,289
Explanation:
Fist we will calculate the present value of $10,000 payment
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. The value of the annuity is also determined by the present value of annuity payment.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $10,000
r = rate of return = 10% / 2 = 5%
n = number of period = 5 years x 2 semiannual payments per year = 10 payments
PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]
PV of Annuity = $77,217
Now we will use the discounting method to calculate the present value of lump sum payment of $20,000
Present value = Future value x Present value factor
PV = FV x ( 1 + r )^-n
PV = $20,000 x ( 1 + 0.1 )^-6
PV = $11,289
Answer:
The options are
A. Inter period
B. Intra period
C. Regular
D. Irregular
The answer is B. Intra period
Intra period cash flow is defined as the flow which occurred in a certain period of time. In the example above , the cash flow occurred within quarterly reporting period of time.
Answer: $489,000
Explanation:
Amount of sales required = (Fixed cost + Desired operating income ) / Contribution margin ratio
Contribution margin ratio for Cover-to-Cover Company:
= Contribution margin / sales
= 77,800/ 389,000
= 20%
Desired operating income = Current income + income increase
= 58,350 + 20,000
= $78,350
Amount of sales required:
= (19,450 + 78,350) / 20%
= $489,000
Answer:
$7,650
Explanation:
Ending work in progress = Beginning Work in progress + Units started - Units completed and transferred
= $22,000 + $90,000 - $97,000
= $15,000
Equivalent units = Units completed and transferred + Ending work in progress
= $97,000 + $15,000
= $112,000
Total cost = Material cost (Beginning) + Material cost during the month
= $11,000 + $46,100
= $57,100
Cost per equivalent unit = $57,100 ÷ $112,000
= $0.51
Materials cost of the work in process inventory at March 31 = Ending work in progress × Cost per equivalent unit
= $15,000 × $0.51
= $7,650
Answer: A. legal but not ethical
Explanation: Introducing mortgage plans to consumers in other to cater for their needs by a mortgage-loan officer is not a legal crime which will be penalized by the law. However, it is an ethical obligation on the path of the mortgage-loan officer to explain the modalities attached to a certain mortgage plan to consumers, both the advantages and the demerits. In the options ARM mortgage plan, it affords consumers to pay below the interest rate on the mortgage, this short paid interest are later added to the principal and the rates increases. This may cause a lot more harm than good to consumers who do not have detailed knowledge of this particular loan process.
