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3 years ago

A mortgage requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%.

Business

1 answer:

bazaltina [42]3 years ago

8 0

Answer:

PV $402,264.7261

balance of the mortage

1-y from now $364,445.9041

2-y from now $323,601.5765

3-y from now $279,489.7026

4-y from now $231,848.8788

5-y from now $180,396.7891

6-y from now $124,828.5322

7-y from now $64,814.8148

Explanation:

We sovle for the PV of the annuity of 70,00 during 8 years discounted at 8%

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 70,000.00

time 8

rate 0.08

$70000 \times \frac{1-(1+0.08)^{-8} }{0.08} = PV\\$

PV $402,264.7261

To know the value of the outstanding dbet we can repeat this formula changing the values for time

t = 7 $364,445.9041

t = 6 $323,601.5765

t = 5 $279,489.7026

t = 4 $231,848.8788

t = 3 $180,396.7891

t = 2 $124,828.5322

t = 1 $64,814.8148

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All else being equal, corporations prefer payments it makes to be classified as dividends rather than business expenses. True Fa

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Answer:

True

Explanation:

Payment of dividend by a corporation depicts better financial picture and stability in earnings. And like business expenses, even the dividend paid by corporations is deducted to arrive at taxable income.

While an expense merely reflects the costs incurred, dividends reflect viable financial position which attracts investments from investors and establishes public confidence.

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3 years ago

When Maria, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton,

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3 years ago

Which of the following items is a wardrobe essential for both men and women?

AysviL [449]

Answer:

Jeans

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3 years ago

Coates Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. T

andrew-mc [135]

Answer:

Selling price per unit= $233.87

Explanation:

Giving the following information:

Overhead:

Estimated overhead= $249,000

Variable manufacturing overhead= $3.80 per machine-hou

Estimated machine-hours= 30,000 machine-hours.

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Number of units in the job 50

Total machine-hours 250

Direct materials $ 470

Direct labor cost $5,500

Selling price= 30% mark up

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (249,000/30,000) + 3.8

Predetermined manufacturing overhead rate= $12.1 per machine hour

Now, we can determine the total cost of Job X784:

Total cost= 470 + 5,500 + (12.1*250)

Total cost= $8,995

Finally, the selling price per unit:

Unitary cost= 8,995/50= $179.9

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3 years ago