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Travka [436]
3 years ago
9

Explain what is meant by the present value of an ordinary annuity. Choose the correct answer below. A. It is the value of any si

ngle annuity payment. B. It is the sum of the paid balance on an annuity at the specified point in time. C. It is the value of the sum of all the annuity payments before any interest is earned. D. It is the value of the unpaid balance on an annuity at the specified point in time.
Business
1 answer:
likoan [24]3 years ago
7 0

Answer:

<u>Letter D is correct.</u>  It is the value of the unpaid balance on an annuity at the specified point in time.

Explanation:

An ordinary annuity is the making of fixed payments over a fixed period of time. To specify the value of an annuity present in an ordinary annuity, one must know the established interest rates. When interest rates are higher, the present value of the ordinary annuity is reduced, and when interest rates are lower the present value is higher.

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Which of the following is considered an advantage of home ownership?
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D. Interest paid on the mortgage of your home is tax deductible
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3 years ago
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During its first year of operations, Crane Company had credit sales of $3,531,400; $664,000 remained uncollected at year-end. Th
Vinvika [58]

Answer:

Bad debt expense...................Dr       $36,000

            Allowance for doubtful debts                $36,000

(To record uncollectibles)

Explanation:

Certain amount of credit sales that the manager estimates to be uncollectible is called bad debts. They are written off at the end of the year. As per allowance method, estimated uncollectibles or bad debts are charged to allowance for doubtful debts.

Here, $36,000 has been estimated by the manager as estimated uncollectible

Journal entry to record uncollectibles:

Particulars                              Debit                Credit

Bad debt expense                   $36,000

       Allowance for doubtful debts                    $36,000

(To record uncollectibles)

7 0
3 years ago
Verizon Wireless has just announced a 2-for-1 stock split, effective immediately. Prior to the split, Verizon Wireless had a mar
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Answer:

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8 0
3 years ago
Seamus McIntyre started saving for retirement today by investing $624 in an account earning 4.20%. He plans to continue with mon
ZanzabumX [31]

The present value of his investment is $113501.94.

What is investment?

An investment is a valuable item bought with the intention of increasing one's wealth. While stocks, bonds, and real estate are frequently included when discussing investments.

Present Value of an Annuity Due is equal to C + C*[1-(1+i)^-(n-1)]/i]

C = Periodic Cash Flow ($624)

i = interest rate per period =4.2%/12 =0.35%

n=number of period=24×12 =288

= $624+624[1-(1+0.0035)^-(288-1) /0.0035]

= $624+624[1-(1.0035)^-287 /0.0035]

= $624+624[(0.6331)] /0.0035

= $113501.94

As a result, $113501.94 is the correct answer.

Learn more about on present value, here:

brainly.com/question/17322936

#SPJ1

3 0
2 years ago
A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the
gregori [183]

Answer:

Decrease, $350000.

Explanation:

Given: Corporation purchases 10000 shares for $35 per share.

Now, calculating cost of common stock.

Cost of common stock purchased = 10000\times 35= \$ 350000

∴ Cost of common stock purchased= $350000

∴ If there is increase in expense and dividend payout to common and preferred shareholder, it lead to decrease in stockholders´ equity.

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3 years ago
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