Answer:
Here we need to find the length of an annuity. We know the interest rate, the PV, and the payments. Using the PVA equation:
PVA =C({1 – [1/(1 +r)t]} /r)
$14,500 = $500{[1 – (1/1.0155)t] / 0.0155}
Now we solve for t:
1/1.0155t = 1 − {[($14,500)/($500)](0.0155)}
1/1.0155t= 0.5505
1.0155t= 1/(0.5505) = 1.817
t = ln 1.817 / ln 1.0155 = 38.83 months
<u>Account will be paid off in 38.83 months.</u>
Answer:
1 year rate 2 year from now = 12% (Approx)
Explanation:
Given:
1-year rate = 8%
2-year rate = 9%
3-year rate = 10%
Computation:
According to Pure Expectations Hypothesis,
(1 + 3-year rate)³ = (1 + 2-year rate)² (1 + 1 year rate 2 year from now)
(1.10)³ = (1 + 1.09)²(1 + 1 year rate 2 year from now)
1.331 = 1.1881 (1 + 1 year rate 2 year from now)
(1 + 1 year rate 2 year from now) = 1.12
1 year rate 2 year from now = 0.12
1 year rate 2 year from now = 12% (Approx)
Answer:
AAA = (8000)
STOCK BALANCE = 0
AEP = 2000
Explanation:
-----------------AAA-------- stock basis---------AEP
Beg. Bal--- 2000 - - - - 10,000 - - - - - - 6,000
Distribution (2000) - - - - (2000) - - - - - (4000)
Balance - - - 0 - - - - - - - 8000 - - - - - - 2000
LTCG - - - 2000 - - - - - 2000 - - - - - - - - 0
Balance - -2000 - - - - - 10,000 - - - - - - 2,000
Loss - - - (10000) - - - - (10000) - - - - - - - 0
Ending - - (8000) - - - - - 0 - - - - - - - - - 2000
ENDING BALANCE :
AAA = (8000)
STOCK BASIS = 0
AEP = 2000
Beg. bal = beginning balance
LTCG = Long term capital gain
Generally speaking, a
business message expressing negative news (reader will react negatively) should
be organized indirectly. The message should be delivered among other
information and should not stand out. This is only appropriate if it is
practical to deliver the message in this way (immediate action is not
required). A more positive message should be prominent in the communication and
expressed in a more direct way, since it is assumed that the reader will react
positively.
Answer:
$8,495,833
Explanation:
<u>Calculation of weighted-average accumulated expenditures</u>
Date Payments Funds used Annualized Amount
Mar 1 $6450000 10/12 $6450000*10/12 $5,375,000
Jun 1 $5350000 7/12 $5350000*7/12 $3,120,833
Dec 31 $8250000 0/12 $$8250000*0/12 <u>$0 </u>
Weighted Average Expenditures <u>$8,495,833</u>