Answer:
$1,593,535.83
Explanation:
Future Value of mortgage determines the future value of a mortgage after payments have been made, at a regular frequency, charged a regular rate of interest, compounded at payment dates.
DATA
PV = $1,500,000
N = 24
r = 0.04/12
PMT = $1250
FV =?
Solution
PV = (PMT/r)*[1 – 1/(1 + r)^N] + FV/(1 + r)^N
1,500,000 = (1250/(0.04/12)) * (1 – 1/(1 + 0.04/12)^24) + FV/(1 + 0.04/12)^24
1,500,000 = 28785.31353687 + 0.92323916 FV
FV = (1,500,000 - 28785.31353687)/ 0.92323916
FV = $1,593,535.83
Answer:
On the ex date, the contracts will show as:
10 ABC Jan 60 Calls
The customer must exercise call contracts to buy the stock prior to the Ex-Date
Explanation:
The reason is that if the customer is not exercising the call contracts then it will not be able to receive the stock dividend. Furthermore, the OCC doesn't adjust the contract because of the dividend announcement prior to exercise of contract. This means it will only adjust if the contract is exercised.
The settlement of the exercise takes around 2 business working days, hence the customer must exercise the option 2 days earlier to the ex-date.
Answer:
rise by $40 billion
Explanation:
Calculation to determine what the investment will be
Investment=$100 billion*(100%-60%)
=$100 billion*40%
=$40 billion
Therefore the investment will rise by $40 billion
Answer:
Decrease, $2,000
Explanation:
The premium on bonds payable will <u>decrease </u>total interest expense recognized over the life of the bond by <u>$2,000</u>. The difference between the face value & the issue value $2,000 ($62,000 - $60,000) should be amortize over a period of time and of which is reduced from interest expense.
