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Alona [7]
3 years ago
7

$2000 a year is deposited into an annuity for a child from its birth until it is 18 years old. The rate of interest is at 7%. Wh

at will the annuity be worth in 18 years?
Business
1 answer:
Vitek1552 [10]3 years ago
6 0
I think the annuity will be worth about 41,146 in 18 years, I hope this helped :)
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A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent
iren2701 [21]

Answer:

The bond equivalent yield to maturity = 8.52%

The effective annual yield to maturity of the bond = 8.71%

Explanation:

Here, we start with calculating the yield to maturity YTM using the financial calculator

To find the YTM, we need to put the following values in the financial calculator:

N = 20*2 = 40;

PV = -950;

PMT = [8%/2]*1000 = 40;

FV = 1000;

Press CPT, then I/Y, which gives us 4.26

So, Periodic Rate = 4.26%

Bond equivalent yield = Periodic Rate * No. of compounding periods in a year

= 4.26% * 2 = 8.52%

effective annual yield rate = [1 + Periodic Rate]^(No. of compounding periods in a year) - 1

= [1 + 0.0426]^2 - 1 = 1.0871 - 1 = 0.0871, or 8.71%

3 0
3 years ago
When a company issue 27,000 shares of $5 per value common stock,the journal entry for this issuance would include:
a_sh-v [17]

Answer:

1. A debit to cash for $135,000

Explanation:

The complete entries are

1. A debit to cash for $135,000

2. A credit to common stock account for $135,000

6 0
3 years ago
Lahdekorpi OY, a Finnish corporation, owns 100 percent of Three- O Company, a subsidiary incorporated in the United States. Requ
RUDIKE [14]

Answer:

Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States

Transfer Pricing:

a) The best transfer pricing method in this case is the cost plus method.  This gives the transfer price as Cost + 50%.

b) The appropriate transfer price should be $3 ($2 x 1.5).

Explanation:

Transfer pricing arises when controlled entities set prices for exchange of goods and services.  When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen.  It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.

There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price.  According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:

a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)

b) Resale price method

c) Cost plus method

d) Transactional net margin method (TNMM)

e) Transactional profit split method.

7 0
3 years ago
The total utility from consuming five donuts is 9, 19, 30, 38, and 45 utils, respectively. Marginal utility begins to diminish a
Sonja [21]

Answer:

third

Explanation:

The utility for consuming the first donut is 9 utils.

The utility for consuming the second donut is the difference from the total utility for the first two and just the first donut.

U_2 = 19-9 = 10\ utils

The utility for consuming the third donut is the difference from the total utility for the first three and just the first two donuts.

U_3 = 30-19 =11\ utils

The utility for consuming the fourth donut is the difference from the total utility for the first four and just the first three donuts.

U_4 = 38-30 =8\ utils

Since the utility for the 4th donut is less than the utility for the 3rd donut, utility begins to diminish after consuming the third donut.

6 0
3 years ago
Mary wants to sell her products in Europe since they're doing well in the United States. She doesn't have a lot of capital and i
Bess [88]

Answer:

D. Exporting Her Products.

Explanation:

As Mary wants to sell her products in Europe since they're doing well in the United States. She doesn't have a lot of capital and is risk-averse, so she should begin with  exporting her products which is the least riskiest and easiest way to enter in foreign market. Exporting is the mechanism by which you sell your products outside your country and generate profits. In this process very less risk is involved and you also need less level of investment as well. Mary can contact some sellers there and send her products to them and receive payment, hence much less risk in involved. With the help of exporting, she can also get the insights about that market's buying patterns as well that which products are in high demand there and can be sold profitably.

3 0
3 years ago
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