I guess the correct answer is $83,386.89.
If you inherited $870,000 and invested it at 8.25% per year, the value you could withdraw at the beginning of each of the next 20 years is $83,386.89.
Answer:
The correct option here is A).
Explanation:
Option A - is correct because according to the conclusion given in the argument, charitable institutions would have to reduce their services and some might have to close their doors , which means the assumption we are going to take will have a direct affect on these institutions , now if we assume that this assumption is false, that means whether this change comes or not charitable institutions will receive donations but that is not the case , so this option has to be correct.
Option B - this option is not right because it is nowhere said that these wealthy individuals are the only source of donations for charitable institution.
Option C - this option is also not correct because here no assumption is being made, the given statement is a consequence of not bringing the change.
Option D - this option is also not correct because there can be other individuals who can make donations.
Option E - this option is also not correct because here an alternative change to tax law is being talked about not the assumption of the argument.
Answer:
Explanation:
The journal entry is shown below:
On July 1
Prepaid Insurance A/c Dr $10,480
To Cash A/c $10,480
(Being prepaid insurance is paid)
On December 31
Insurance expense A/c Dr $2,620
To Prepaid Insurance $2,620
(Being prepaid insurance is adjusted)
The computation is shown below:
= $10,480 ÷ 2 years × 6 months ÷ 12 months
= $2,620
Answer:
1.17%
Explanation:
Expected return is 15.1 %
Risk free rate is 5.95 %
Market risk premium is 7.8%
Therefore the beta can be calculated as follows
Expected return= risk free rate + (beta×market risk premium)
15.1%= 5.95% + (beta × 7.8%)
15.1%-5.95%= 7.8% beta
9.15%= 7.8% beta
beta= 9.15%/7.8%
beta= 1.17%
Answer:
The fund balance at the end of the year is $22,075.
Explanation:
Let X denote the end-of-year balance. During the year, the balance grows as follows
1,205 → 1,230+ ($800) = 2,030
The time-weighted yield rate for the one yearperiod is 11.1%
11.1 = 
* 
1230x = 27152265
x = 
x = $22,075
