Answer: $80 million per year for 25 years
Explanation:
The option you should choose is one that will guarantee you the highest present value.
This means that you need to discount the annual payment of $80 million per year for 25 years to find the present value. As you did not include a rate, we shall assume a rate of 8% for reference purposes.
The annual payment is an annuity so the present value can be calculated by:
Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years
= 80,000,000 * Present value interest factor, 8%, 25 years
= 80,000,000 * 10.6748
= $853,984,000
<em>The present value of the annual payment is more than the present value of the $850 million received today so the Annual payment should be taken. </em>
Answer:
Here we need to find the length of an annuity. We know the interest rate, the PV, and the payments. Using the PVA equation:
PVA =C({1 – [1/(1 +r)t]} /r)
$14,500 = $500{[1 – (1/1.0155)t] / 0.0155}
Now we solve for t:
1/1.0155t = 1 − {[($14,500)/($500)](0.0155)}
1/1.0155t= 0.5505
1.0155t= 1/(0.5505) = 1.817
t = ln 1.817 / ln 1.0155 = 38.83 months
<u>Account will be paid off in 38.83 months.</u>
Solution:
Given,
Sandra's family's monthly net income = 6654
Family decides to increase the savings budget by 3%
Decreasing one of the variable expenses by 3%
If the family decreases the clothing budget by 3 percent,
then $466 would have to spend ( Rounded the nearest dollar )
Answer and Explanation:
The preparation of the retained earnings statement for the year ended December 31, 20 is presented below:
Bramble Corporation
Retained Earning statement
For the year ended December 31, 2022
Beginning balance of retained earning $10,584
Add: Net income $5,880
Less: Cash Dividend paid -$4,200
Ending balance of retained earning $12,264
The net income is computed below:
= Service revenue - salaries and wages expense - insurance expense - rent expense - supplies expense - depreciation expense
= $25,200 - $12,600 - $1,680 - $3,780 - $420 - $840
= $5,880
As a business owner no I would not like that because having to pay my employees $15 a hour will make me make my items I sell more expensive and customers would not like that