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Pie
3 years ago
11

A service contract for a video projection system costs $90 a year. You expect to use the system for three years. Instead of buyi

ng the service contract, what would be the future value of these annual amounts after three years if you earn 5 percent on your savings
Business
1 answer:
xenn [34]3 years ago
3 0

Answer:

$245.09

Explanation:

A service contract for a video projection system costs $90 a year. You expect to use the system for three years.

Instead of buying the service contract, the future value of these annual amounts after three years if you earn 5 percent on your savings will be:

PV  

Ordinary Annuity

​  =C×[  ((1−(1+i)  ^−n ) / i ]

where

n = number of years = 3

i = interest rate = 5%

Present Value of the annuity = 90 x [ ((1 - (1+0.05)^-3) / 0.05] = $245.09

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Goliath Corp. has beginning accounts receivable of $2,000. During the year, Goliath sold goods to customers on account for $10,0
pishuonlain [190]

Answer:

$12,000

Explanation:

According to the accrual accounting method, the reporting of the transactions should be performed on an accrual basis which means whether or not the payment is paid but it is reported in the account books.

The revenue should be recorded when it is earned or realized and the expenses are recorded when it is incurred

So, in the given scenario, the amount based on accrual basis sales would be

= Goliath sold goods to customers on account + Goliath also sold goods to customers for cash

= $10,000 + $2,000

= $12,000

3 0
3 years ago
Jamal was recently hired as a sales representative for a pharmaceutical company. He notices that all the other sales reps "pad"
il63 [147K]

Answer: Conformity

Explanation: Ethics trap refers to the situation in which an individual finds difficult to assess what is morally correct for him or her and what is not.

  Conformity refers to the ability of an individual to match the customs and beliefs of a group to mingle with that particular group.

In the given case, Jamal has been working in the company where all the members have been cheating on their accounts except for him. This urges Jamal to do the same for being a part of group.

Hence we can conclude that the correct option is C.

7 0
3 years ago
A bond investor buys a municipal bond with a face value of $100,000 and a 3% coupon. The bond matures in one year. The investor
Marat540 [252]

Answer:

3.5%

Explanation:

The formula to calculate total return is: Profit/Original Cost. 100,000 x .03 = $3,000 interest. $3,000 interest + 100,000 principal = 103,000 cash flow. $103,000 - 99,500 = $3,500 gain. $3,500 gain/$99,500 cost = .03518. .03518 = 3.5%

7 0
3 years ago
Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest. The current yield to maturity
Umnica [9.8K]

The question is incomplete as the maturity dates are missing. The complete question is as follows,

Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 19 percent annual interest. The current yield to maturity on such bonds in the market is 11 percent. Compute the price of the bonds for these maturity dates:

a. 40 years  

 b. 17 years

 c. 8 years

(Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)

Answer:

a.

Bond Price  = $1716.084065 rounded off to $1716.08

b.

Bond Price  = $1603.90355 rounded off to $1603.90

c.

Bond Price  = $1411.68982 rounded off to $1411.69

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment, number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.

<u>a. 40 Years </u>

Coupon Payment (C) = 1000 * 0.19 = $190

Total periods remaining (n) = 40

r or YTM = 0.11 or 11%    

 

Bond Price = 190 * [( 1 - (1+0.11)^-40) / 0.11]  + 1000 / (1+0.11)^40

Bond Price  = $1716.084065 rounded off to $1716.08

<u>b. 17 Years </u>

Coupon Payment (C) = 1000 * 0.19 = $190

Total periods remaining (n) = 17

r or YTM = 0.11 or 11%    

 

Bond Price = 190 * [( 1 - (1+0.11)^-17) / 0.11]  + 1000 / (1+0.11)^17

Bond Price  = $1603.90355 rounded off to $1603.90

<u>c. 8 Years </u>

Coupon Payment (C) = 1000 * 0.19 = $190

Total periods remaining (n) = 8

r or YTM = 0.11 or 11%    

 

Bond Price = 190 * [( 1 - (1+0.11)^-8) / 0.11]  + 1000 / (1+0.11)^8

Bond Price  = $1411.68982 rounded off to $1411.69

8 0
3 years ago
Al’s Fine Winery has had workers attempting to band together to form a union. Al’s wants to avoid letting the workers gain too m
Nataly [62]

Answer:

Yellow dog contracts

Explanation:

Yellow dog contracts are given by employers in which they and the new hirees agree that employees would not engage unions activity under the company's payroll. It attempt to avoid the formation of labor unions so the organizations only will have the power in employee decisions

It is considered illegal after the Norris-LaGuardia Act of 1932 was enacted

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3 years ago
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