Answer:
$855,903.20
Explanation:
Real discounting rate=> i= [i'-f]/[1+f]. Where i is the real interest rate. i' is the nominal interest rate which is given as 5% and f is the rate of inflation
i = (5%-3%)/1+3%)
i = 2/1.3
i = 1.94%
Her after tax earnings = 45,000*(1-0.15) = $38,250
Personal consumption = 25% of this, 38,250*0.75 = $28,688.
We are discounting her earnings back 45 years at 1.94%. The equation will be: 28,688 * {1-(1+0.01940)^-45} / {0.01940}
= 28,688 * {1 - 0.42120322099] / 0.01940
= 28,688 * 29.83488551597938
= 855903.1956824165
= $855,903.20
So, the amount of life insurance necessary for Jenny using the Human Life Value method is $855,903.20
Answer:
B. Debit Notes Receivable $4,000; credit Sales $4,000
Explanation:
Notice we are asked for hthe entry in the supplier's book:
The supplier will take the note thus, it will ahve a note receivable as in the future it expect to receive a cashflow.
The interest will be accrued over time, so are ignored for the moment
The supplier also has to recognize the amount of sales revenue earned with the sale.
Answer:
The Supreme Court decided that the use of prayers to open government meetings in 2014 is constitutional and that such meetings can hold, even if it clearly favors one faith, provided that there is no attempt to harass, intimidate, or coerce other religion believers.
