Answer:
Deal, and the best option is to pay the same amount at the end of the academic year.
The reason for this is that if you have that amount in an interest bearing account, the money will earn interest, meaning that after paying the tuition at the end of the year, you will have the interest earned for yourself.
In other words, the present value of your money is the full value of your tuition, while the future value of your money is the value of the tuition plus the interest earned.
Besides, because the time value of money decreases as time passes, the amount you pay in tuition will represent less of your total income at then end of the academic year, than at the beginning.
Answer:
One-year return on the fund (including capital gain/loss) 4.19%
Explanation:
An investor could purchase the fund at
12 x (1 + 2%) = 12.24
During the year, received 1.50 in distributions of income
At year-end it could sale it at:
12.10 x (1 - 7%) = 11.253
Capital return: 11.253 - 12.24= -0.987
Total return 1.50 - 0.987 = 0.513
Investment cost: 12.24
Return of return: return / investment
0.513 / 12.24 = 0,0419117 = 4.19%
Answer:
Account Titles Debit Credit
Cash $144,500
Discount on Bonds Payable $53,941
Bonds Payable $184,000
Paid-in Capital Stock Warrants $ 14,441
Working:
Discount on bonds payable = Bonds payable + Paid in capital stock warrant - cash
= 184,000 + 14,441 - 144,500
= $53,941
Value of bonds with warrants:
= 144,900 + 16,100
= $161,100
Value of warrants is therefore:
= Cash received / Value of bond with warrants * value of warrants
= 144,500 / 161,100 * 16,100
= $14,441
Answer:A debit to interest expense for $36,000
Explanation:
interest expense= 800,000-80,000 = 720,000 5% 12/12
