Answer:
Explanation:
Interest Factors
<u>Periods 6% 7% 8% 9% 10% 11
%</u>
1 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100
2 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321
3 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676
4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181
1)
Future value paying simple interest = Principal + [( principal * interest) * investment period]
Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]
Future value paying simple interest = $2,000 + 540
Future value paying simple interest = $2,540
2)
Future value paying compound interest = Present value * ( 1 + interest)n
Future value paying compound interest = $2,000 * ( 1 + 0.09)3
Future value paying compound interest = $2,000 * 1.295029
Future value paying compound interest = $2,590.058
3)
Difference = $2,590.058 - 2,540
Difference = $50.058
This is called, visual perception.
Answer: a 0.049, 0.05 and 0.05 or 5%
b 0.039, 0.041 and 0.041 or 4%
Explanation:
Ai discounted yield = [(Face value - purchase price)/Face value] * 360/ maturity
Discount yield =:[(100000 - 96040)/100000] * 360/290
= 0.0396* 1.24
= 0.049
ii. Bond equivalent yield (BEY) = [(Face value - purchase price)/purchase value] * 365/M
BEY= [(100000 - 96040)/96040] * 365/290
BEY = 0.05
iii EAR = [(1+BEY/n)exp n - 1)
EAR = [(1 + 0.05/(365/290)) exp (360/290) - 1]
EAR = [(1 + 0.05/1.26) exp (1.26) - 1
EAR = (1.04) exp (1.26) - 1
EAR = 0.05 or 5%
The same formula are applied for the B part
Discount yield = [(100000-96040)/100000] * 360/365
Discount yield = 0.0396 * 0.986
= 0.039
B ii. BEY = [(100000 - 96040)/96040] * 365/365
BEY = 0.041 × 1
BEY = 0.041
B iii. EAR = [(1 + 0.041/(365/365))exp (365/365) - 1
EAR = (1 + 0.41) - 1
EAR = 0.041 or 4%
The Y in APY means yearly, the answer is APY
Answer:
B. $1673920
Explanation:
First calculate Total loss
$2000000 loss from disposal of a component of the business and loss of $92400 from strike by the employees of a supplier
$2000000 + $92400 = $2,092,400
20% of the loss =
20% × $2,092,400
= $418,480
Therefore the effect of these events and transactions on 2020 net income net of tax would = Total loss - 20% of total loss
$2,092,400 - $418,480
= $1,673,920
