Invisible hand.
The invisible hand is Adam Smith's theory that markets left on their own will automatically adjust to the production and consumption that most benefits all involved.
<span>An advantage of a sole proprietorship is that the owner can make business decisions quickly.</span>
Answer:
$7,126.78
Explanation:
First, find the present value of the annuity payments at the year Jordan retires.
You can do this question using a financial calculator using the following inputs;
Total duration; N = 35
Recurring payment ; PMT = 75,000
Required return; I/Y = 5%
Future value ; FV = 0 (note: use 0 for FV in this annuity if not given)
then CPT PV(at t=35) = 1,228,064.572
Next, to find the recurring annual payment , $1,228,064.572 would the goal that needs to be achieved hence the Future value at year 35.
FV = 1,228,064.572
N= 35
Interest rate before retirement; I/Y = 8%
PV = 0
then CPT PMT = 7,126.78
Therefore, she must deposit $7,126.78 per year.
Answer:
1. What was the issue price on January 1 of this year?
since the coupon rate was 6% and the market rate was the same, the bonds will be sold at par, so their issue price = $240,000
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
interest expense = coupon rate = $7,200 (for both June 30 and December 31)
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
Face value = $240,000
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Face value = $240,000
