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igomit [66]
3 years ago
5

Kevin Morales invests $14,963.72 now for a series of $2,200 annual returns beginning one year from now. Kevin will earn a return

of 6% on the initial investment. How many annual payments of $2,200 will Kevin receive?
Business
1 answer:
4vir4ik [10]3 years ago
7 0

Answer:

Answer= 9 years

Explanation:

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

14,963.72=2200[1-(1.06)^-n]0.06

14,963.72=36,666.67[1-(1.06)^-n]

1-(1.06)^-n=(14,963.72/36,666.67)

(1.06)^-n=1-(14,963.72/36,666.67)

(1/1.06)^n=0.591898545

Taking log on both sides;

n*log (1/1.06)=log 0.591898545

Hence n=log0.591898545/log (1/1.06)

=9 years.

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yaroslaw [1]

Answer:

e. A positive economic statement can be proved; a normative statement cannot.

Explanation:

A positive economic statement are objective statement that can be tested, amended or rejected by referring to available evidence.

this means in essence that a positive economic statement is prone to improvement when proven. it is not rigid

a normative statement is subjective that cannot be changed. it is rigid.

7 0
3 years ago
Employees and customers are treated like a family at Rahal Realty. Fadil and Inas Rahal, the owners, work to encourage unity to
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5 0
3 years ago
The present value factor for an ordinary annuity at 10% for 6 periods is 4.3553. The lease does not transfer the property to Whi
gogolik [260]

Complete question:

On January 1. Year 1. White Co. sold a property with a remaining useful life of 20 years to Blue Co. for $900.000. At the same time. White entered into a contract with Blue for the right to use the property (leaseback) for a period of 6 years. with annual rental payments of 580.000 that approximate the market rental payments for similar properties. On January 1. Year 1. the carrying amount of the property was 5680.000. and its fair value was 5770.000. A discount rate for the lease of 10% is used by both White and Blue. The present value factor for an ordinary annuity at 10% for 6 periods is 4.3553. The lease does not transfer the property to White at the end of the lease term and does not include a purchase option.  

What amount of lease expense for the right of use of the property is recognised by White in Year 1 ?

A. $0

B. $130,000

C. $90,000

D. $220,000

Answer:

$90,000 amount of lease expense for the right of use of the property is recognised by White in Year 1

Explanation:

If the leaseback is known as an operating lease, the original transition to the buyer-lessor of the asset should be taken into account as the selling of an asset, given that all the income identification requirements have been fulfilled.

If the deal is of equal value, the lender lease is informed of the gain or loss of sale between the purchase price and the sum of the land that is held. Yet this is not a equal value trade. The property's sale price is higher than its market value. Accordingly, the income or loss on sale seems to be the difference between the equal worth and the value of the land.

Therefore, on 1 January, White records a benefit of $90,000 in revenue of $770,000 (fair value of $680,000 in carrying amounts)

4 0
3 years ago
PLEASE HELP
Scilla [17]

D. Nowzer is an internal customer as a sales distributor.

7 0
3 years ago
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When the expected inflation rate increases, the real cost of borrowing ________ and bond supply ________, everything else held c
Dafna1 [17]

Answer:

The answer is: C) decreases ; increases

Explanation:

The real cost of borrowing is calculated by adjusting the nominal cost of borrowing by the inflation rate. This means that if the inflation rate increases, then the adjusted real cost of borrowing will decrease.

The inflation rate increases when country´s money supply growth rate outpaces its economic growth. So when the inflation rate increases (lowering the real cost of borrowing), borrowers are more likely to issue bonds, increasing the bond supply.

4 0
3 years ago
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