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denis-greek [22]
3 years ago
15

Jack and Tracy would like to have $10,000 for a down payment on a new condo. A savings account at their local credit union will

pay 2% per year compounded monthly. How much should they deposit now in this account to have the down payment in 3 years
Business
1 answer:
lianna [129]3 years ago
5 0

Answer:

They should deposit $4,9,02 in the account.

Explanation:

Present value is the value of future cash flow in present term. The amount received in future have more value today than in future because of opportunity of reinvestment of cash flow.

Number of periods = 3 x 12 = 36 months

Present value = Future value  / ( 1 + r )^n

Present value = $10,000  / ( 1 + 0.02 )^36

Present value = $10,000   / 2.04

Present value = $4,902.23 = $4,902

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Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bond
cricket20 [7]

Explanation:

The Journal entry is given below :-

Bonds payable                                      $2,000,000

      To common stock                          $1,000,000

      To Discount on common stock     $30,000

      To Paid in capital                            $970,000

The calculation of bonds payable, common stock is below:-

For bonds payable            

= 2,000 × $1,000

= $2,000,000

For common stock

= 2,000 × 50 × $10

= $1,000,000

For paid in capital

= $2,000,000 - ($1,000,000 - $30,000)

= $970,000

4 0
3 years ago
Company X has 100 shares outstanding. It earns $1,000 per year and announces that it will use all $1,000 to repurchase its share
Minchanka [31]

Answer:

d) 89.0

Explanation:

The value of the company today is the present value of its cash flows in perpetuity which is the cash flows divided by the required rate of return.

value of the firm=$1000/10%=$10,000

share price=value of the firm/shares outstanding

share price=$10,000/100=$100

number of shares to be repurchased=$1000/$100=10

number of shares after repurchase=100-10=90

note that when 90.91 is rounded to a whole, it turns out to be 92 while 89 is rounded to 90

6 0
3 years ago
If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect?
LekaFEV [45]

Answer:

Maybe a loss in jobs?

Explanation: Because people who work for the oil company have to stop working idk

3 0
3 years ago
Read 2 more answers
Should protesting be allowed at Biden’s inauguration?
Fudgin [204]

Answer:

Explanation:

No, He deserves a peaceful inauguration.

3 0
3 years ago
The United Kingdom started regulating the size of grocery stores in the early​ 1990s, and​ today, the average size of a typical
Svetradugi [14.3K]

Answer:

C. The​ long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale.

Explanation:

The diseconomy of scale is called the effect that occurs in the costs of a given production. These effects generate increasing costs for the company for each unit of product that is manufactured. Specifically and technically, a diseconomy of scale occurs when a percentage increase in production is less than the percentage increase in inputs.

Since the size of the grocery stores decreases, the average costs decreases. So, The​ long-run average cost of production is lower when there are diseconomics of scale.

Hope this helps.

0 0
4 years ago
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