Answer:
$440,113.37
Explanation:
Since the engineer is placing $7,000 at the end of every year for the 22 years, therefore the amount which will be saved by him at the end of 22 years shall be determined through the future value of annuity formula which is given as follows:
Amount after 22 years=R[((1+i)^n-1)/i]
In the given question
R=amount saved by engineer per year=$7,000
i=interest rate involved=9%
n=number of payment to be made=22
Amount after 22 years=7,000[((1+9%)^22-1)/9%]
=$440,113.37
Answer:
the number of units should be produced is 26,000 units
Explanation:
The computation of the number of units should be produced is as follows:
Units to be produced is
= Expected sales units + ending inventory units - beginning inventory units
= 23,000 units + 18,000 units - 15,000 units
= 26,000 units
Hence, the number of units should be produced is 26,000 units
Answer:
The answer is letter C.
Explanation:
Revenues of the blended component unit.
Answer:
The increase in yield to maturity from 5.5% to 7% will cause the price of the bond to fall from $ 1,057.46 to $ 972.70
Explanation:
In order to ascertain the impact on the bond of a sudden increase in the yield to maturity from 5.5% to 7%, the present value of the bond, the current price is computed using yield of maturity of 5.5% and 7% respectively.
In calculating the present value, a discounting factor is used to state today's value of the future cash flows from the bond, given as 1/(1+r)^N, where r is the yield to maturity divided by 2 , in order to show that the bond is a semi-annual interest paying bond.The fact that the bond is a semiannual one means interest would be paid 14 times( 7 years *2)
The present value is computed in the attached.