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3 years ago

If you invest $750 every six months at 8 percent compounded semi-annually, how much would you accumulate at the end of 10 years?

Business

1 answer:

liq [111]3 years ago

6 0

Answer:

FV= $22,333.56

Explanation:

Giving the following information:

Semi-annual investment= $750

Interest rate= 0.08/2= 0.04

Number of periods= 10*2= 20

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= semi-annual deposit

FV= {750*[(1.04^20) - 1]} / 0.04

FV= $22,333.56

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Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $830 million on January 1, 2021. The bonds sold

Semmy [17]

Answer:

discount on bonds payable 18,383,020.48 debit

other comprehensive income 18,383,020.48 credit

--to adjust Bonds at 12/31/2021 market value --

other comprehensive income 4.739.000‬ debit

discount on bonds payable 4.739.000‬ credit

--to adjust Bonds at 12/31/2022 market value --

Explanation:

We solve for the book value at year-end using effective rate

First year:

First payment

830,000,000 x 5.5% = 45,650,000

767,557,868 x 6.0% = 46,053,472.08

Amortization 403,472.08

Second Payment

830,000,000 x 5.5% = 45,650,000

(767,557,868 + 403,472.08) x 6.0% = 46,077,680.4

Amortization 427680.4

Carrying value at year-end

767,557,868 + 403,472.08 + 427,680.40 = 768,389,020.48

We need to recognize a deferred gain for the difference between these and the 750,000,000 market value at December 31th

which is $ 18,383,020.48 as these as not been realized it will be part of other comprehensive income

We will increase the discount to adjust the bonds payable account net balance.

Second year:

We repeat the process

First Payment:

830,000,000 x 5.5% = 45,650,000

Interest expense 750,000,000 x 6% = 45,000,000

Amortization 650000

Carrying value 750,000,000 + 650,000 = 750,650,000

Second Payment:

830,000,000 x 5.5% = 45,650,000

750,650,000 x 6% = 45,039,000

Amortization 611000

Carrying Value 750,650,000 + 611,000 = 751,261,000

Wer now compare this with the 756,000,000

as now the debt of the company has increased we are going to decrease the discounttand recognize a deferred loss through other comprehensive income as it wasn't realized

756,000,000 - 751,261,000 = 4.739.000‬

7 0

3 years ago

The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half

scZoUnD [109]

Answer:

It is true because the mayor will be able to divide successfully the burden of the tax equally if the demand for labor and supply of labor are similarly elastic.

Explanation:

If the labor demand curve is elastic, a little reduction in the compensation will be adequate to build the amount of labor requested to assimilate the expanded inventory. In either case, the harmony will be reestablished with a little change in the pay.

The extent of the impact of welfare change on wages and labor is profoundly subject to the versatility of work requests and work supply. The effect of the versatility of work request and work supply on the rate change in wages and business can be gotten by separating different elasticity's .

7 0

3 years ago

What are the competitive advantages of international businesses

poizon [28]

Answer:

I think the above information will help you.....

5 0

3 years ago

Distribution of benefits and costs

PilotLPTM [1.2K]

Answer:

1) INEFFICIENT As it cost for the society more than the benefit generated.

2) AGAINST Assuming the Senators wants the better for the republic are do not push their own agendas

3) RESOURCES/MONEY/POLITICAL INFLUENCE for as much as 30 millions

Assuming they want to avoid the cost they will try to move the cost to another strata or reject the law. As they want to cut their cost they will not overexpend above the 30,000,000 from the original law.

4) MOST PROBABLY/HIGH CHANCE As the benefit are focused they will root for the legislation and lobby for it

Explanation:

The question is to think how a rational person who wish to do no harm will impact the political system. It is important to assume participant will work within the framework of the society and not push to destroy to avoid the law or push for the law that benefit.

6 0

3 years ago

The Lo Company earned $2.60 per share and paid a dividend of $1.30 per share in the year just ended. Earnings and dividends per

Kitty [74]

Answer:

Price of stock is $18.57

Explanation:

Dividend growth method measures the stock value by taking sum of present value of all future cash flows means present value of all future dividends.

Use following formula to calculate the price of stock

Price = Dividend / Rate of return - Growth rate

According to given data

Dividend = $1.30

Required rate of return = 12%

Growth rate = 5%

Price = $1.3 / ( 12% - 5% )

Price = $1.3 / 7%

Price = $18.57

3 0

3 years ago