Answer:
- <u><em>Option B. $1,025 a month for 10 years.</em></u>
Explanation:
Calculate the present value of each option:
Formula:
![PV=C\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=PV%3DC%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
Where:
- PV is the present value of the constant monthly payments
- r is the monthly rate
- t is the number of moths
<u>1. Option A will provide $1,500 a month for 6 years. </u>
![PV=$\ 1,500\times \bigg[\dfrac{1}{(0.005\overline 6}-\dfrac{1}{0.005\overline 6(1+0.005\overline 6)^{(6\times12)}}\bigg]](https://tex.z-dn.net/?f=PV%3D%24%5C%201%2C500%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B%280.005%5Coverline%206%7D-%5Cdfrac%7B1%7D%7B0.005%5Coverline%206%281%2B0.005%5Coverline%206%29%5E%7B%286%5Ctimes12%29%7D%7D%5Cbigg%5D)
<u>2. Option B will pay $1,025 a month for 10 years. </u>
![PV=$\ 1,025\times \bigg[\dfrac{1}{(0.005\overline 6}-\dfrac{1}{0.005\overline 6(1+0.005\overline 6)^{(10\times12)}}\bigg]](https://tex.z-dn.net/?f=PV%3D%24%5C%201%2C025%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B%280.005%5Coverline%206%7D-%5Cdfrac%7B1%7D%7B0.005%5Coverline%206%281%2B0.005%5Coverline%206%29%5E%7B%2810%5Ctimes12%29%7D%7D%5Cbigg%5D)
<u>3. Option C offers $85,000 as a lump sum payment today. </u>
<u></u>
<h2 /><h2> Conclusion:</h2>
The present value of the<em> option B, $1,025 a month for 10 years</em>, has a the greatest present value, thus since he is only concerned with the <em>financial aspects of the offier</em>, this is the one he should select.
Answer:
$32,600
Explanation:
Calculation to determine her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard
Using this formula
Itemized deduction =(Financing amount * 6 percent)+(Additional amount borrowed*interest rate of 8 percent)
Let plug in the formula
Itemized deduction=( $350,000 * 6 percent)+($145,000 *8 percent)
Itemized deduction=($21,000+$11,600)
Itemized deduction=$32,600
Therefore her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard wi be $32,600
Diego applying the systems model of change as a diagnostic framework
<h3><u>
Explanation:</u></h3>
The Business Diagnostics Framework is a systemized way to diagnose the form of your business. The framework emerges from the external concentric rings, evaluating primary the outside environment and then penetrating down into the essential functional areas of the business processes.
Business diagnosis is a means of operating rearward to recognize causes for inadequate execution by making the relevant links within causes and effects. Thus, it is a method of knowing the signs or conditions of a problem. The Business Diagnostics system is a different framework that assists resolve even the most complicated business circumstances.
Answer:
C. $40,000
Explanation:
For computing the amount of the gain recognized, first we have to calculate the gain recognized based on the adjusted basis
= Cash received + fair market value of the stock - adjusted cash basis
= $40,000 + $60,000 - $35,000
= $100,000 -$35,000
= $65,000
But the cash is received for $40,000. So, only $40,000 of gain would be recognized. As in the case of transfer, if the amount is received other than the stock so the amount which is received is recognized as a gain i.e $40,000
Answer:
Check the explanation
Explanation:
To calculate or compute the annual percentage growth rate over a particular year period, minus the opening value from the ending value, after which you’ll divide by the opening value. Then multiply the result you got by 100 to get your growth rate that is demonstrated as a percentage.
The step by step calculation can be seen below:
a)if reaches 50 then per share gain
=final-initial-call premium
=50-45-3.25=1.75
gain(%)=gaim/initial)*100
=(1.75/45)*100
=3.89%
b)gain=50-44=6
gain(%)=(6/44)*100
=13.654%
