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Colt1911 [192]
3 years ago
6

39. You expect to receive $5,000 in 25 years. How much is it worth today if the discount rate is 5.5%?

Business
1 answer:
ivann1987 [24]3 years ago
6 0

Answer:

PV= $1,311.17

Explanation:

Giving the following information:

Future Value (FV)= $5,000

Number of periods (n)= 25 years

Interest rate (i)= 5.5% compounded annually

T<u>o calculate the present value (PV), we need to use the following formula:</u>

<u></u>

PV= FV / (1+i)^n

PV= 5,000 / 1.055^25

PV= $1,311.17

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The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some
Gwar [14]

Answer:

Option B                                  

Explanation:

In simple words, A policy of stabilisation refers to the package or group of indicators that have been presented to normalize a financial sector or economic system. The term may relates to initiatives in two separate situations: convergence of the economic cycle or stabilisation of its credit crunch. It is one type of unilateral strategy in any situation.

    Thus, from the above we can conclude that the correct option is B .

7 0
3 years ago
Which statement is true? A. Bonds are generally called at par value.B. A current list of all bondholders is maintained whenever
slavikrds [6]

Answer: Option C

Explanation:

A. Bonds can be called at discount or premium depending upon the interest rate availing in market and the coupon interest rate.

B. In case of bearer bonds no transactions and ownership records are maintained.

C. Indenture is the contract between issuer and holder specifying the duties and obligations of issuer and the rights of holders.

D. Collateralized bonds are backed by a pool of assets while debentures are unsecured bonds .

E. A bondholder can have the right to determine it only when he have the put option with him otherwise the right to call bond lies with the issuer.

8 0
3 years ago
I need help brainstorming ideas for my innovation class.
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Answer:

ayúdame por favor

Explanation:

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5 0
3 years ago
Soap Company manufactures soap X and soap Y and can sell all it can make of either. Hours available to produce the products are
Nastasia [14]

Answer:

It would take 162 minutes to make one unit of product X.

Explanation:

Giving the following information:

Hours available to produce the products are the constrained resources.

Soap could reduce the processing time for X by 10 percent.

X Y

Sales Price $20 $25

Variable Cost 14 15

Hours needed to process 3 5

<u>First, we need to determine the number of minutes required to make one unit of Product X under the new method:</u>

Number of minutes required= (3*60)*0.9= 162 minutes.

It would take 162 minutes to make one unit of product X.

B) False. The contribution margin per hour of Product B is higher than product Y.

C) False. The contribution margin per hour of $2 was before the improvement in product X.

D) False. Product Y has a higher contribution margin per unit but lower compared to the contribution margin per hour.

6 0
3 years ago
On January 1, a company purchased a five-year insurance policy for $3,700 with coverage starting immediately. If the purchase wa
Pavlova-9 [17]

Answer:

a. debit Insurance Expense, $740; credit Prepaid Insurance $740

Explanation:

Insurance payment for 5 years = $3,700

On January 1, $3,700 has been recorded as prepaid expense by debiting prepaid insurance and crediting cash.

At the end of first year an insurance expense for one year is accrued and should be recorded by transferring balance of $740 from prepaid insurance account to insurance expense account  

Insurance payment per year = $3,700 / 5 = $740 per year

The adjusting entry will be

Debit      Insurance Expense    $740

Credit     Prepaid Insurance     $740

6 0
3 years ago
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