Answer:
Annual deposit (PMT) = $1,567,060.39
Explanation:
Given:
Future value of annuity due = $8,000,000
Rate of interest(r) = 10% = 0.1
Number of year (n) = 4 year
Annual deposit (PMT) = ?
Computation of annual deposit :
\\\\8,000,000 = PMT [\frac{(1+0.1)^4-1}{0.1} ](1+0.1)\\\\8,000,000 = PMT [\frac{(1.1)^4-1}{0.1} ](1.1)\\\\8,000,000 = PMT [\frac{(0.4641}{0.1} ](1.1)\\\\8,000,000 = PMT [5.1051]\\PMT = 1,567,060.39](https://tex.z-dn.net/?f=Future%5C%20value%5C%20of%5C%20annuity%5C%20due%20%3D%20PMT%20%5B%5Cfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%20%5D%281%2Br%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%281%2B0.1%29%5E4-1%7D%7B0.1%7D%20%5D%281%2B0.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%281.1%29%5E4-1%7D%7B0.1%7D%20%5D%281.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%280.4641%7D%7B0.1%7D%20%5D%281.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B5.1051%5D%5C%5CPMT%20%3D%201%2C567%2C060.39)
Annual deposit (PMT) = $1,567,060.39
Answer:
a) decrease the quantity demanded
Explanation:
According to the law of demand, an increase in the price of a good reduces the quantity demanded for that good.
Answer:
Debit Depreciation Expense, $525;
Credit Accumulated Depreciation, $525.
Explanation:
Based on the information given in a situation where the financial statements are to be prepared on December 31, which means that the company should make the following adjusting entry:
Debit Depreciation Expense, $525
Credit Accumulated Depreciation, $525
Calculated as:
Debit depreciation expense $6,300/12
Debit depreciation expense=$525
Answer: $15,400,000
Explanation:
The fees paid to the fund's investment managers during the year would simply be the Management fee of 0.7% of the average daily assets. The expense ratio refers to other adminstrative expenses.
= 2,200,000,000 * 0.7%
= $15,400,000
Answer:
Company should continue with old machine (Alternative 1)
Explanation:
Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
DIFFERENTIAL ANALYSIS
Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income
REVENUES
Proceeds from sale of machine
$0 $50500 $50500
COSTS
Purchase price $0 -$75000 -$75000
Direct labor -$56000 -$37000 19000
(11200*5 = -56000)
(7400*5 = -37000)
Income (loss) -$56000 -$61500 -$5500
Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)
