Answer:
Explanation:
Rate per period =15% = 15/12 monthly
Payment(PMT)=$1,000
Future amaount(FV)=$2,000,000
N(years)=?
If input this data into fin calculator, n= 262.27months=262.27/12years=21.86years
Answer:
Cafeteria Plan
Explanation:
The cafeteria plan is minimum benefits that the employer have to provide or personally provide to all the employees working in its organization. In some jurisdictions like USA and Europe, the employer has to provide minimum level of facilities and benefits to the employee which inculdes healthcare, pension contributions, etc.
Answer:
$21.71%
Explanation:
Given that
Monthly saving = $760
Gross income = $3500
The computation of the savings ratio is shown below:-
Savings Ratio = (Monthly savings ÷ Gross Income) × 100
= ($760 ÷ $3,500) × 100
= $0.21 × 100
= $21.71%
Therefore for computing the saving ratio we simply divide gross profit by monthly saving and after a result we multiply by 100.
<span>You are given an annual dividend of $2.10 for the fifteen years that you plan on holding it. Also, after 15 years, you are given to sell the stock for $32.25. You are asked to find the present value of a share for this company if you want a 10% return. You have to mind that the future stock for 15 years is $32.25. You are not only going to mind the present value of the annuity at $2.10 but also the $32.25.
With the interest of r = 10% and number of years of n = 15, we get
PVIFA = 7.6061.
For annuity we have,
$2.10 * 7.60608 = $15.973
For $32.35 with r = 10% and n = 15
PVIF = 0.239392
Thus for the present value of selling price,
$32.25 * 0.239392 = $7.720
Thus the present value of the share
P = $15.973 + $7.720
P = $23.693
</span>
Answer:
The simple rate of return on the investment is closest to: C. 10.6%
Explanation:
In Hartong Corporation:
Increasing net income = Increase sales revenues - Cash operating expenses - Annual depreciation expense = $185,000 - $89,000 - $52,000 = $44,000
This is the net income from the equipment per year
Return on the investment (ROI) is calculated by using following formula:
ROI = (Net income/Cost of investment
)x 100%
Cost of investment = Cost of equipment = $416,000
ROI = ($44,000/$416,000) x 100% = 10.6%
