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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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Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10
Feliz [49]

Answer:

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is  $10,200.

Explanation:

In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is , we have to make the following calculations.

First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100

Hence, First year preferred dividend = $9,100-$8,000 = $1,100

Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

8 0
3 years ago
An Organization pays $65,000 in Social Security taxes for its employees. When payroll liabilities are journalized, how mucus ent
tatyana61 [14]

Answer:

It's NOT $65,000

Explanation:

the test

7 0
2 years ago
Why do some products have as packaged and as prepared and others only have as packaged
Marina CMI [18]
There are three major types of paper packaging: corrugated boxes, boxboard or paperboard cartons, and paper bags and sacks. Corrugated Boxes: Corrugated boxes are commonly used to carry heavier products such as appliances, electronic goods, wine, fruit and vegetables.
4 0
4 years ago
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of
Reika [66]

Answer:

$4 and $4

Explanation:

The computation are shown below:

Per hour cost = Total set up cost ÷ Total direct labor hours

                          = $64,800 ÷ $81,000

                          = $0.8

Now the set up cost would be

= Per hour cost × Direct labor hours per unit

For Plus

= 5 × $0.8

= $4

For Max

= 5 × $0.8

= $4

All other given information is not important. Hence, ignored it

4 0
4 years ago
The price elasticity of demand is –1.25, and the share of the tax borne by consumers is 0.80. what is the price elasticity of su
Musya8 [376]

<span>Price elasticity of demand is -1.25 =  Ed</span>

Price elasticity of supply = Es

Share of tax by consumers = 0.80 = Es / (Ed + Es) = Es / Es + 1.25

0.8 Es + 1 = Es

1 / 0.2 = Es = 5

Therefore, the price elasticity of supply is 5

<span> </span>

3 0
4 years ago
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