Answer:
Price will increase by $277.58
Explanation:
Market rate of Interest of a zero coupon bond can be determined by following formula
Market Rate of Interest = [ ( F / P )^(1/30) ] - 1
4.25% = [ ( $5000 / P )^(1/30) ] - 1
0.0425 + 1 = ( $5000 / P )^1/30
( 1.0425 )^30 = (( $5000 / P )^1/30)^30
3.4856 = $5000 / P
P = $5,000 / 3.4856
P = $1,434.46
Now Calculate the change in Price
Change in price = $1,434.46 - $1,156.88 = $277.58
Price will increase by $277.58
Answer:
The amount to save now is = $862.03 (to 2 decimal places)
Explanation:
In order to solve this, we will compute the end-of-year amounts using the 5% increase each year. This is done as follows:
Year 1 ending = $200
Year 2:
Year 2 beginning price = $200
Note that 5% increase = 5/100 = 0.05
increase in year 2 = 5% of 200 = 0.05 × 200 = 10
Year 2 new price = 200 + 10 = $210
Year 3:
beginning price = $210
increase in year 3 = 0.05 × 210 = $10.5
Year 3 new price = 210 + 10.5 = $220.5
Year 4
beginning price = $220.5
interest in year 4 = 0.05 × 220.5 = 11.025
new price in year 4 = 220.5 + 11.025 = $231.525
Next to calculate the amount needed to pay for one travel ticket per year for the next four years, we will add the prices of the tickets each year as follows:
Total amounts needed = 200 +210 + 220.50 + 231.53 = $862.03
<span>After you submit the Free Application for Federal Student Aid (FAFSA), you will be sent a Student Aid Report (SAR). If they have a valid e-mail address on file for you, they will send you an e-mail, within 3 to 5 days, with instructions on how to access an online copy of your SAR.</span>
Answer: 1. D. Economic entity
2. C. Circumstances prevent the exercise of control.
3. B. Consolidation used for both Sell and Vane.
4. B. In form, the companies are separate; in substance, they are one entity
Explanation:
1. When a parent–subsidiary relationship exists, it can be infered that consolidated financial statements will be prepared in recognition of the accounting concept of economic entity.
2. Consolidated financial statements are prepared when one company has a controlling interest in another unless the circumstances prevent the exercise of control.
3. Based on the information given, in Penn’s consolidated financial statements, it should be noted that Sell and Vane should be consolidated. Therefore, the correct option is B.
4. The best theoretical justification for consolidated financial statements is that in form, the companies are separate while in substance, they are regarded as one entity.
