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Travka [436]
4 years ago
9

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $

1) (Use appropriate factor(s) from the tables provided.)1. John Jamison wants to accumulate $75,000 for a down payment on a small business. He will invest $35,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal?PV= $35,000, n=?, i=8%, FV=$75,0002. The Jasmine Tea Company purchased merchandise from a supplier for $43,700. Payment was a noninterest-bearing note requiring Jasmine to make six annual payments of $8,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?PV=$43,700, n=6, i=%, Annuity Payment= $8,0003. Sam Robinson borrowed $18,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Sam’s friend would like to be reimbursed for the time value of money at a 9% annual rate. What is the annual payment Sam must make to pay back his friend?Table or calculator function: PVA of $1. PV= $18,000, n=10, i=9%, Annual Installment=?
Business
1 answer:
taurus [48]4 years ago
4 0

Answer:

Explanation:

(1)

FV = PV x (1 + r)^N  

FV = $75,000

PV = $35,000

r = 8%

75,000 = 35,000 x (1.08)^N

(1.08)N = 2.1429

N ln 1.08 = ln 2.1429

N = ln 2.1429 / ln 1.08 = 0.33 / 0.033 = 10 years

(2)

FV = Annual payment, A x PVA

FV = $43,700

n = 6 years

A = 8,000

43,700 = 8,000 x PVA

PVA = 5.4625

PVIFA (6 years, r%) = 5.4172

r=3%.

(3)

PV = Annual payment, A x PVIFA (r%, n years)

PV = $18,000

n = 6 years

r = 9%

$18,000 = A x PVIFA (9%, 6 years) = A x 4.4859 [From PVIFA table]

A = $18,000 / 4.4859 = $4,012.57

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Answer:

a. soldiering

Explanation:

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3 years ago
One would speak of a movement along a supply curve for a good, rather than a change in supply, if Group of answer choices
grin007 [14]

Answer:

4) the price of the good changes.

Explanation:

A movement along the supply curve means that the supply relationship remains consistent. Therefore, a movement along the supply curve will occur when the price of the good changes and the quantity supplied changes in accordance to the original supply relationship. In other words, a movement occurs when a change in quantity supplied is caused only by a change in price, and vice versa.

6 0
3 years ago
Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79
muminat

Answer:

Please see below

Explanation:

Given that:

Number of chairs sold = 35,000

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The cost of goods sold that must be eliminated from the consolidated

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4 0
3 years ago
On January 1, 2024, Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1, 2034. The bonds
Brums [2.3K]

Answer: The bond carrying value is approximately $3,332

Explanation:  

Given that

Year    Int. Expense(A)   Interest pmt(B)  Pre. amortization    Bonds carrying val

          9% of previous      11% of face              B-A                    Issue price - prem

          carrying value            value                                                         Amort

0                     0                           0                         0                         $3,385

1            (0.09×3385)         (0.11×3000)          (330 - 304.65)      (3,385 - 25.35 )

                $304.65               $330.00                $25.35                   $3,359.65

2          (0.09×3,359.65)    (0.11×3000)          (330 - 302.37)   (3,359.65-27.63)

                $302.37               $330.00                $27.63                  $3,332.02

The bond carrying value is approximately $3,332

3 0
3 years ago
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