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IRISSAK [1]
3 years ago
13

Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad

minister it. As you’ve committed to fund a $15,000 scholarship every year beginning one year from tomorrow, you’ll want to set aside the money for the scholarship immediately. At tomorrow’s meeting with your grandfather and the bank’s representative, you will need to deposit (rounded to the nearest whole dollar) so that you can fund the scholarship forever, assuming that the account will earn 4.50% per annum every year.
Business
1 answer:
algol133 years ago
8 0

Answer: The correct answer is $333,333.33

Explanation: Perpetuity is a cashflow that is payable or receivable forever.

In calculating the present value of a Perpetuity, the cash flow will be divided by the rate.

That is $15,000/ 4.5%

=$15,000/ 0.045

=$333,333.33

The money to be set aside now to be able to pay $15,000 every year is $333,333.33

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Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,902.14. The bond has a coupon rate of 6.48 percent and m
Virty [35]

Answer:

yield to maturity = 7.06%

Explanation:

yield to maturity (YTM) is calculated using the following formula:

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

  • FV = $2,000
  • PV = $1,902.14
  • C = $2,000 x 6.48% x 1/2 = $64.80
  • n = 12 x 2 = 24

YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually

Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.

8 0
3 years ago
In September 20X3, LaToya Corporation paid for insurance for the next six months in the amount of $42,000. On December 31, LaToy
Umnica [9.8K]

Answer:

Net income is overstated by $28,000.

Explanation:

As the company forget to make the adjustment entry it didn't recognize any expense for the expired insurance.

From September to December 31th 4 month of insurance has expired:

42,000 x 4 month/6 months = 28,000 insurance expense

as the expense weren't post the income statement is overstated along with the assets of the company as it doesn't have a prepaid amount for 42,000 but for 14,000

5 0
3 years ago
The following information relates to the manufacturing operations of the JNR Printing Company for the year: Beginning Ending Raw
grin007 [14]

Answer: $117,000

Explanation:

So we are to calculate the Raw Materials purchased during the year.

Logically speaking the following should hold,

Raw materials purchased during the year + beginning raw materials = ending Raw materials + Raw materials used

Agreeing on that and rearranging the formula we will have,

Raw Material purchased during the year = Raw Material used during the year + Ending Raw Material Inventory - Opening Raw Material Inventory

Slotting in the figures we will then have,

Raw Material purchased during the year = 114,000 + 56,000 - 53,000

= $117,000

Raw materials purchased during the year amount to $117,000.

8 0
3 years ago
Which is NOT a first degree misdemeanor for a licensee if found guilty? The publishing of false or misleading information The un
svet-max [94.6K]

Answer:

1. The unlawful collection of an advance fee for listing real property

2. Acting as a broker or sales associate without holding an active, current license.

Explanation:

Considering the available options, the ones that are NOT a first-degree misdemeanor for a licensee if found guilty are:

1. The unlawful collection of an advance fee for listing real property

2. Acting as a broker or sales associate without holding an active, current license.

This is because a first-degree misdemeanor is considered to be a result of "rental information violations."

And considering the available options, The publishing of false or misleading information and Failing to provide accurate and current rental information for a fee, falls within the misdemeanor charges.

3 0
3 years ago
What can a pure market economy also be called
bonufazy [111]
A pure market economy is also called capitalism. or pure capitalism.
4 0
3 years ago
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