First, we calculate the present value in year 5 of the annuity and then once again calculate the present value of this result to get the value today
Present value an annuity = P*(1-(1+r)^-n)/r
where P = 3200, r = 0.10 and n = 15 payments (from year 6 to year 20)
Present value of the annuity in year 5 = 3200*(1-(1+0.10)^-15/)0.10
Present value of the annuity in year 5 = 3200*(1-1.10^-15)/0.10
Present value of the annuity in year 5 = 24,339.45
Now with 24,339.45 as the FV , we calculate the present value today as
PV today = FV/(1+r)^n = 24339.45/1.10^5
PV today =15,112.89
Value today =$15,112.89
Answer:
Dos Amugus company
Partial Statement of Comprehensive Income
Particulars Amount
Income from continuing operations $621,000
Discontinued operations. Gain on discontinued $42,000
segment net of tax (60,000 * 30% of 60,000) <u> </u>
Net income $663,000
Other comprehensive income ($84,000)
Unrealized holding loss, on available for sale
securities net of income tax (120,000-30%*120,000) <u> </u>
Comprehensive income <u>$579,000</u>
<span>The basic financial planning phase emphasizes time horizons of one year; whereas the forecast-based planning phase focuses on time horizons of three-to-five years with no help from consultants. The comprehensive evaluation current and future financial condition by using currently known variables in predicting future cash flows, withdrawal plans and assets is called basic financial planning. While forecasting uses management's experience, knowledge and judgement as a basis for certain assumptions.</span>
Answer:
d. the demand curve has shifted to the right.
Explanation:
An increase in demand is associated with a rightward shift of the demand curve.
A decrease in demand leads to a leftward shift of the demand curve.
Some of the factors that cause an increase in demand :
1. Increase in income if the good is a normal good.
2. Expectation of an increase in price in the future.
3. Increase in price of the substitute.
An increase in Quanitity demanded leads to an upward movement along the demand curve. Only changes in price leads to a movement along a demand curve.
I hope my answer helps you
Answer:
$7,875
Explanation:
Total car sales in January: $112,500
Commission at the rate of 7%,
Salary for January is :
7 percent of $112,500
=7/100 x $112,500
=0.07 x $112,500
=$7,875