If consumer wealth decreases as the stock market plunges, then (3 points) there is a movement down the AD curve as price level d
1 answer:
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Answer:
The correct answer is "43,000".
Explanation:
The given values are:
Carrying amount,
= $4060000
Face value,
= $3900000
Now,
For June 30, 2021, the Interest expense will be:
=
=
For June 30, 2021, the cash interest will be:
=
=
Now,
On June 30, 2021, the premium's amortization will be:
= Interest expense - Cash interest
=
=
On retirement, the cash paid will be:
=
=
On June 30, 2021, the less carrying amount will be:
= Carrying amount - amortization
=
=
Then,
The loss on retirement as well as ignoring taxes will be:
= Cash paid - less carrying amount
=
=
Answer:
$627
Explanation:
To find the answer, we use the present value of an annuity formula:
Where:
- P = Present value of the investment
- A = Value of the annuiry
- i = interest rate
- n = number of compounding periods
Now, we plug the amounts into the formula:
12,600 = A (20.09870355)
A = 12,600/20.09870355
A = 627
Thus, the value of the monthly payments is $627