Which of the following is a true statement?

Polo Publishers purchased a multi-color offset press with terms of $40,000 to be paid at the date of purchase, and a noninterest

Ivanshal [37]

Answer:

$150,876.91

Explanation:

To calculate, the present value of an ordinary annuity formula is used as follows:

PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)

Where;

PV = Present value of the payments =?

P = yearly payment = $30,000

r = interest rate = 11% = 0.11

n = number of years = 5

Substitute the values into equation (1) to have:

PV = $30,000 × [{1 - [1 ÷ (1+0.11)]^5} ÷ 0.11] = $110,876.91

Amount to record = $40,000 + $110,876.91 = $150,876.91

3 0

3 years ago

Who is likely to be in favor of a price ceiling on a good?

Karo-lina-s [1.5K]

Answer:

A vast majority of Democrats and a few Republicans. On this recent vote, 11 Republicans voted with the Democrats.

7 0

3 years ago

It is possible to insure a pet, a body part, and jewelry. True False

il63 [147K]

Answer: True

Explanation:

The statement that It is possible to insure a pet, a body part, and jewelry is true. It should be noted that a standard homeowners policy consist of the coverage for precious items which includes watches, jewelry etc.

Also, it is possible to insure ones pet. People usually insure their dogs and cats. Also, celebrities usually insure their body parts. For example, Rihanna once insure he legs and Mikey Cyrus insure her tongue as well.

3 0

3 years ago

Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equil

Anon25 [30]

Answer:

Increase , increase

Explanation:

A decrease in the supply of a product increases in its price. Reduced supply means many buyers competing for the few available products. The prices of goods or services are determined by the intersection of the demand and supply curves. There is an indirect relationship between supply and price of quantity supplied when demand is constant. A reduced supply results in high prices while an increase in supply causes low prices.

As prices increase, suppliers will want to supply more to make profits. Constant demand and a high price will thus lead to an increase in equilibrium quantity.

5 0

3 years ago

You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and

Vedmedyk [2.9K]

Answer:

Monthly withdraw= $5,870.6

Explanation:

Giving the following information:

Stock:

Monthly deposit= $700

Interest rate= 0.075/12= 0.00625

Number of periods= 30*12= 360

Bond:

Monthly deposit= $400

Interest rate= 0.055/12= 0.0045833

Number of periods= 30*12= 360

First, we need to calculate the value of the investment at the moment of retirement:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

FV= {700*[(1.00625^360) - 1]} / 0.00625

FV= $943,211.797

Bond:

FV= {400*[(1.00458^360) - 1]} / 0.00458

FV= $365,447.415

Total FV= $1,308,659.212

Now, the monthly withdrawal:

Interest rate= 0.025/12= 0.002083

Number of periods= 25*12= 300

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (1,308,659.212*0.002083) / [1 - (1.002083^-300)]

Monthly withdraw= $5,870.6

7 0

3 years ago