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3 years ago

1. Explain the difference between an ordinary annuity and an annuity due. Begin by explaining what an annuity is.

Business

1 answer:

Evgesh-ka [11]3 years ago

6 0

Explanation:

1. An annuity is a number of equivalent payments made. For instance, the annuities include daily savings account deposits, monthly home loan payments, monthly insurance and pension payments. Annuity can be defined by the payment dates frequency.

Difference between an ordinary annuity and an annuity due:

In each period certain annuities shall pay the same amount, while varying annuities that differ in amounts. At the end of each time, payments in the standard annuity take place. In comparison, payments for an annuity due are made at the start of the contract.

2. The number of y-axis and discount rate on the x-axis is usually present in an annuity table. Place them on the table for your annuity and then place the cell in which they meet. Multiply the cell number by the amount of money each time is earned.

3. The annuity table contains the amount of contributions you expect to collect at a given interest rate plus a list of equivalent payments. You come to the current value of the payments when you subtract this element by one of the payments. As a quick guide the preceding annuity table includes only figures for discrete intervals and interest rates, which may be not quite the same as a real world scenario.

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Alex receives a raise at work and continues to work the same number of hours each week. what is the most likely way that his dem

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In the case narrated, Alex had an increase in salary and remained working for the same number of hours. This means that with the same job, he will have a higher income, meaning there was a real increase in Alex's income. If he considers the $ 3 shirts a much lower asset, he will lessen the demand for it.

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3 years ago

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The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before li

Travka [436]

The answers are the following:
a.
Brandon:
$7,000 + [($10,000/4)×3¿= $8,500
Ryan:
$7,000 + [($10,000/4)×1¿= $7,500

b.
Brandon $7,000
Ryan $7,000

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3 years ago

WalCo is a manufacturing company. Assume the estimated inventories on January 1, 2020, for finished goods, work in process, and

ASHA 777 [7]

Answer:

Cost of goods sold=$955000

Explanation:

we know that to calculate cost of goods sold we have to first finds cost of goods manufactured and to calculate cost of goods manufactured we will need total manufacturing cost.

Step#01: Total manufacturing cost=?

Total manufacturing cost= raw material used+direct labour+ factory overhead

Raw material used=?

Raw material (open)= 72000

Add: Raw material purchase=467000

539000

less: Raw material (ending)= (93000)

Raw material used 446000

Total manufacturing cost=446000+363000+213000=1021000

Step#2: Cost of goods manufactured (COGM)=?

we know that: COGM= Total manufacturing cost+ work in process (open)-work in process (end)

COGM= 1021000+63000-84000=1000,000

Step#3: Cost of goods sold (COGS)=?

we know that : COGS= Cost of goods manufactured+finished goods (open)-finished goods (ending)

COGS= 1000000+171000-216000=955000

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3 years ago

Pera Inc. wishes to issue new bonds. These are 5-year bonds with semi-annual interest; $1,000 par value, and a yield to maturity

Gemiola [76]

Answer:

coupon rate= 13.5%

Explanation:

Giving the following information:

Number of periods= 5*2= 10 semesters

Par value= $1,000

YTM= 0.1/2 = 0.05

Price bond= $1,136

To calculate the coupon rate, first, we need to determine the coupon per semester using the following formula:

Bond Price= coupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

1,136 = coupon*{[1 - (1.05^-10)] / 0.05} + [1,000/(1.05^10)]

1,136 = coupon*7.722 + 613.91

522.09 = coupon*7.722

$67.61=coupon

Now, the coupon rate:

Coupon= par value*(coupon rate/2)

67.61= 1,000*(coupon rate/2)

67.61= 500coupon rate

0.135=coupon rate

coupon rate= 13.5%

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3 years ago

Experience indicates that strategic alliances Group of answer choices work best when they are aimed at achieving a mutually bene

nikdorinn [45]

Answer: Stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals

Explanation:

Strategic alliance occurs when two or more companies join hands together in order to achieve strategic outcome that's mutually beneficial to the parties involved.

It should be noted that companies to into Strategic alliance in order to improve market access, improve supply chain efficiency and to also gain economies of scale.

Lastly, it should be noted that strategic alliances stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals.

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3 years ago