Answer:
Present Value= $15,874.25
Explanation:
Giving the following information:
Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.00 years?
<u>This is a rare case where the interest rate is negative:</u>
Interest rate= 0.03 - 0.06= -0.03
Having said this, the present value is higher than the final value:
PV= FV/ (1+i)^n
PV= 14,488/ 0.97^3= $15,874.25
Explanation:
Face Value of Debenture Rs
100
Discount (Rs 100 x 5%) = Rs 5
:. Issue Price = Rs 95
Answer:
b. false; a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes.
Explanation:
If the demand for running shoe is less, There would be no need for increase in supply.
A) Adding all goods and services
Answer:
$183,493.91
Explanation:
The computation of the amortization expense is shown below:
but before that following calculations are needed
The Amortization cost per year is
= $2,500,000 ÷ 16 years
= $156,250
Now the legal fees per year
= $326,927 ÷ 12 years
= $27243.92
Now the amortization expense is
= $156,250 + $27243.92
= $183,493.91
