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Romashka-Z-Leto [24]
3 years ago
5

You just won the grand prize in a national writing contest! As your prize, you will receive $500 a month for 50 months. If you c

an earn 7 percent on your money, what is this prize worth to you today? A. $20,333.33 B. $21,629.93 C. $21,338.40 D. $18,411.06 E. $19,450.25
Business
1 answer:
nadya68 [22]3 years ago
5 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Cash flow= $500

Number of months= 50

Monthly interest rate= 0.07/12= 0.00583

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= cash flow

FV= {500*[(1.00583^50) - 1]} / 0.00583

FV= $28,928.06

Now, the present value:

PV= FV/(1+i)^n

PV= 28,928.06/(1.00583^50)

PV= $21,631.67

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3 years ago
The following information will be used for 2 questions on this exam: Charlotte Corporation's management keeps track of the time
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Answer:

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Explanation:

data provided

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3 years ago
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dusya [7]

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And, the rest ones are incorrect  

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Answer:

Explanation:

The necessary adjusting entries at December 31 to record amortization required by the events above has been prepared.

It should also be noted that due to the goodwill having an indefinite life, no entry was made to amortize the goodwill.

It should be noted that the amortization expense was gotten as:

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Kindly check the attached file forthe adjusting entries

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