Answer:
- <u><em>$31,858.57</em></u>
Explanation:
1. First calculate the value of a constant annuity of $1,500 for 15 years at the 8% return.
The formula is:
![PV=C[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]](https://tex.z-dn.net/?f=PV%3DC%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5D)
Where:
- PV is the present value of the annuity
- C is the constant pay,emt: $1,500
- r is the rate of return: 8%/12 = 0.08/12 =
- t is the number of periods: 15 years × 12 moths/year = 180
Substitute and compute:
![PV=\$ 1,500[\dfrac{1}{(0.08/12)}-\dfrac{1}{(0.08/12)(1+0.08/12)^{180}}]](https://tex.z-dn.net/?f=PV%3D%5C%24%201%2C500%5B%5Cdfrac%7B1%7D%7B%280.08%2F12%29%7D-%5Cdfrac%7B1%7D%7B%280.08%2F12%29%281%2B0.08%2F12%29%5E%7B180%7D%7D%5D)
<u>2. Discount to the present year.</u>
You calculate the value of the annuity 20 years from now.
Then, you must discount that value at the same 8% rate to have the price today.
Here, the value in 20 years is $156,960.89, r = 0.08/12, and t = 240 (20 × 12).
Answer:
$78.35
Explanation:
Given:
Future value = $750
Maturity time = 5 years
Annual rate = 5%
Now,
Future value = P × ( 1 + r )ⁿ
Where, P is the present value of the bonds
r is the rate of interest
n is number of periods
on substituting the values, we get
$100 = P × ( 1 + 5% )⁵
or
$100 = P × ( 1.05 )⁵
or
P = $78.35
Hence, the state should sell its bond at a price of $78.35
Answer:
A
Explanation: be available to help employees and solve ethical problems.
Answer:
gross profit under FIFO = $40,570 - $25,220 = $15,350
gross profit under LIFO = $40,570 - $26,340 = $14,230
gross profit under weighted average = $40,570 - $26,240 = $14,330
gross profit under specific id. = $40,570 - $26,070 = $14,500
Explanation:
sales revenue = (290 x $86.60) + (160 x $96.60) = $40,570
COGS under FIFO:
130 x $51.60 = $6,708
160 x $56.60 = $9,056
80 x $56.60 = $4,528
80 x $61,60 = $4,928
total COGS = $25,220
COGS under LIFO:
240 x $56.60 = $13,584
50 x $51.60 = $2,580
160 x $63.60 = $10,176
total COGS = $26,340
COGS under weighted average:
weighted average = [(130 x $51.60) + (240 x $56.60) + (100 x $61.60) + (180 x $63.60)] / 650 = $58.31
450 x $58.31 = $26,239.50 ≈ $26,240
COGS under specific method:
80 x $51.60 = $4,128
210 x $56.60 = $11,886
60 x $61.60 = $3,696
100 x $63,60 = $6,360
total COGS = $26,070
