Answer: opportunity cost of capital
Explanation:
The example in the question above is an opportunity cost of capital. Opportunity cost of capital simply refers to the potential loss that an individual makes because of making a choice at the expense of another one.
Here, the opportunity cost of capital is the $800000 that could have been made if they decided to add a product line of deep sea diving watches.
Net pay is calculated by subtracting deductions from Net Pay.
In this case:
Gross Pay is 40 hours X $9/hr (regular pay) PLUS 3 hours X (13.50 -- 1.5 times the normal pay) for overtime
Once you have Gross Pay, you multiply that by the percentages given for the deductions and subtract that total from Gross Pay.
One note, in this case, federal taxes are not withheld from the amount given to 401(k). So to figure the taxes you would:
(Gross Pay - 401(K) contribution) X 10%
Gross Pay - deductions = net pay
Answer:
$936.17
Explanation:
The current market price of the bond = present value of all coupon received + present value of face value on maturity date
The discount rate in all calculation is YTM (6.12%), and its semiannual rate is 3.06%
Coupon to received semiannual = 5.3%/2*$1000= $26.5
We can either calculate PV manually or use formula PV in excel to calculate present value:
<u>Manually:</u>
PV of all coupon received semiannual = 26.5/(1+3.06)^1 + 26.5/(1+3.06)^2....+ 26.5/(1+3.06)^24 = $445.9
PV of of face value on maturity date = 1000/(1+6.12%)^12 = $490.27
<u>In excel:</u>
PV of all coupon received semiannual = PV(3.06%,24,-$26.5) = $445.9
PV of of face value on maturity date = PV(6.12%,12,-$1000) = 1000/(1+6.12%)^12 = $490.27
The current market price of the bond = $445.9 + $490.27 = $936.17
Please excel calculation attached
Answer:
We have:
Amount of principal = $268,000
Interest payment = $1,522.24
Explanation:
These can be calculated as follows:
Loan principal = Cost of the home * Percentage to borrow = $335,000 * 80% = $268,000
Interest payment = (Loan principal / $1,000) * $5.68 = ($268,000 / $1,000) * $5.68 = 268 * $5.68 = $1,522.24
Therefore, we have:
Amount of principal = $268,000
Interest payment = $1,522.24
Answer:
Pedestrian : A person who walks on foot rather than in vehicles.
