Answer:
The correct answer is Option A. you will need to deposit $111,111 so that you can fund the scholarship forever, assuming that the account will earn 4.50% per annum every year.
Explanation:
Perpetuity is the cash flows to be receivable for an unspecified period of time. The present value of a perpetuity is calculated as the cash flows divided by the interest rate provided.
Given data;
Amount needed to be deposited = $5000
Interest rate = 4.50%
Present Value of Perpetuity = Cash Flows ÷ Interest rate
= $5000 ÷ 0.045
= $111,111
Answer:
c. $24,990
Explanation:
The Term 2/15 net 45 mean 2% cash discount is offered if the payment is made within 15 days otherwise the credit period is 45 days. There is no after 15 days of sale.
Amount of Sale = $25,500
Discount Rate = 2%
The Pound Co. paid the invoice within the discount period. They are eligible to receive the 2% discount on sale value.
Discount Amount = $25,500 x 2% = $510
Net Sales amount in this transaction = $25,500 - $510
Net Sales amount in this transaction = $24,990
Answer:
d) Mary, who was laid off last year and who was looking for a full-time job until last month
Explanation:
In the United States, a discouraged worker is defined as a person not in the labor force who wants and is available for a job and who has looked for work sometime in the past 12 months (or since the end of his or her last job if a job was held within the past 12 months), but who is not currently looking because of real or perceived poor employment prospects.
To find simple interest:
Time = Interest/(Principle)(Rate)
Interest is the amount of interest paid
Principle is the amount you lent or borrow
Rate is the percentage of principle charged as interest each year
Time is the years of the loan
P=Principle amount of $1,500
I=Interest amount of $1,200 (Take the new amount of $2,700 and subtract from the principle that is $1,500 which gives you $1,200)
r= as a decimal .15 (15%/100)
t=unknown
T=I/PR
T=1,200/(1,500)(.15)
T=1,200/225
T=5.3 years
It would take Lance roughly 5.3 years
Answer:$4.44
Explanation:
Net income after tax is $600,00 less 20% =$480,000
Total shares for diluted eps 90,000+18,000= 108,000
Diluted eps= 480,000/108,000
= $4.44
.
