Answer:
The correct answer is $23,260.69.
Explanation:
According to the scenario, the given data are as follows:
Payment (pmt ) = $7,000
Time period (n) = 3
Rate of interest (r) = 5.2%
So, we can calculate the future value by using following formula:
FV = Pmt ( 1 + r)^n + Pmt ( 1 + r)^n-1 + Pmt ( 1 + r)^n-2
By putting the value, we get
= $7,000 ( 1 + 0.052)^3 +$7,000 ( 1 + 0.052)^2+$7,000 ( 1+ 0.052)^1
= $23,260.69
hence, The future value after 3 years will be $23,260.69.
Answer:
a) $393.65
b) $458.11
c) $217.63
Explanation:
Given data:
16-year ( n )
$1000 par value ( FV )
6% ( R )
A) determine the initial price of the bond
= FV / ( 1 + R ) ^ n
= 1000 / ( 1.06 ) ^ 16
= 1000 / 2.5403 = $393.65
B ) when interest rate drops to 5% determine the value of the zero-coupon rate of bond
= FV / ( 1 + R ) ^n
= 1000 / ( 1.05 ) ^ 16
= 1000 / 2.1829 = $458.11
C ) when interest rate increases to 10% determine the value of the zero-coupon rate of bond
= Fv / ( 1 + R ) ^ n
= 1000 / ( 1.1 ) ^ 16
= 1000 / 4.5950 = $217.63
Competitive problems.
If there are not ethics standards in place that are followed by the company, it is hard for businesses to compete on a level playing field.
Answer:
Store cards are credit cards that typically can only be used at specific stores. Retailers partner with banks to offer these revolving lines of credit to customers. Store cards encourage shoppers to purchase items on credit today and pay them off over time. The advantage for the store is that you’re locked into their ecosystem; the advantage for you is that you might receive offers that are exclusive to cardholders.
The main difference between a store card and a credit card is that where a store card can only be used at a specific store, a credit card can be used anywhere that credit cards are accepted.
Explanation:
<span>Cash Flow from operating activities
</span>
<span>a) Profit after tax 45,000
b) Depreciation 75,000
c) Tax Paid 25,000</span><u> </u>
<span>d) Interest paid <u>5,000 </u></span> 150,000
Cash Flow from Investing activities
<span>f) Cash Received from sale of Building 40,000</span>
<span>i) Purchase of Machinery (20,000)
</span><span>l) Profit on sale of building <u> 20,000</u> 40,000
</span>
Cash Flow from financing activities
<span>e) Dividend paid (10,000)
</span><span><span>g) Sale of Preferrence Share 35,000
h) Repurchase of Ordinary Shares (30,000)</span>
</span><span>j) Issuance of Bond 50,000
k) Debt Retired through issuance of ordinary shares 45,000
l) Paid off long term bank borrowings <u> (15,000)</u></span> <u> 75,000</u>
Net change in cash 265,000
