Answer:
The right solution is "70375.08".
Explanation:
Given that,
Present value,
= 4360
Interest rate,
= 5%
Time period,
= 30
Now,
The present value of inflows will be:
= ![(1+rate)\times \frac{Present \ value[1-(1+Interest \ rate)^{-time \ period}]}{rate}](https://tex.z-dn.net/?f=%281%2Brate%29%5Ctimes%20%5Cfrac%7BPresent%20%5C%20value%5B1-%281%2BInterest%20%5C%20rate%29%5E%7B-time%20%5C%20period%7D%5D%7D%7Brate%7D)
= ![1.05\times 4360\times \frac{[1-(1.05)^{-30}]}{0.05}](https://tex.z-dn.net/?f=1.05%5Ctimes%204360%5Ctimes%20%5Cfrac%7B%5B1-%281.05%29%5E%7B-30%7D%5D%7D%7B0.05%7D)
= 
= 
Answer:
Consider the following explanation
Explanation:
Under Effective interest method, Interest calculated at the effective interest rate (i.e., the yield of the bond) is charged as an expense annually, and the payment made basis the Coupon rate.
In the given case, interest to be paid semi annually i.e, on June 30 and on December 31, will be $62,500 (i.e., 2,500,000 * 5% * 6/12).
On the basis of above, the interest expense to be charged in the 2017 can be calculated as follows: take a look to the attached archive.
As calculated above, the amount to be charged as interest expense for the year 2017 is (80,220 + 80,840 i.e.,) $ 161,060.
Answer:
Globalization by definition is that process that the business or n organisation begins to operate on an international standards.It involves interactions amongst individuals , institution and even the government.
There are 4 basic aspects of globalization
1.Dissemination of knowledge.
2.Migration and movement
3.Capital and investment movement
4.Trade and transctions.
Explanation:
1.in the first point , we view globlisation as a measure in the changes of the human heritage by the aspect of knowledge.people's world wide ideologies are disseminated by varoious means far and wide, in the whole world.
2.Globalization has caised movement, through migrationa socioeconomic as well as the political relations is created along the borders.Movement has caused people to be more difficult to controlband also people have been dislocated.
3.These terms are commonly used to describe the economy .capitalism is the private ownership as opposed to ownership by the government.
4.Trade and teansactions has caused tremendous improvements across the globe, in a way, it has led creating jobs, increaeing thw workers salaries amongst other factors .conversely , trade transactions has caused social disruptions and as a result number of businesses are lost.
Answer:
$800
Explanation:
$800 = $400 cash + ($1.0 x 40 shares) common share + ($9 x 40 shares) adjusted price in common shares
Answer:
Bond price=$888.35
Explanation:
<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate</em>
<em>Value of Bond = PV of interest + PV of RV</em>
The value of bond for Local School District can be worked out as follows:
Step 1
PV of interest payments
PV = A × (1+r)^(-n)/r
A-annul interest payment:
= 7.5% × 1,000× = 75
r-Annual yield = 8.6%
n-Maturity period = 25
PV of interest payment:
=75× (1- (1+0.086)^(-25)/0.086)
= 761.22
Step 2
<em>PV of Redemption Value</em>
= 1000 × (1.017)^(-25)
= $127.131
Step 3
<em>Price of bond</em>
=761.222 + 127.13
=$888.35
