Answer:
Third year depreciation: $ 12689,44
Formula for dn, dn= Ci x0,89^n
Ci is the initial cost
Explanation:
Spreadsheet is attached with the calculus and the probation formula.
In the traditional method each year we reduce the value by 11%
So, is dn=C(n-1)*0,11
C(n-1) is the carrying value
Also, we obtain the same result with the following formula
dn= Ci x0,89^n
Ci is the initial car cost
As the depreciation is 11%, 89% is the value that remains.
Answer: $121
Explanation:
The question simply wants us to find the present value of receiving $100 investment two years from now at a 10 percent annual discount rate.
This can be easily solved as follows:
For the first year, the $100 will be worth:
= $100 + ($100 × 10%)
= $100 + ($100 × 0.1)
= $100 + $10
= $110
The worth at the end of the second year will then be:
= $110 + ($110 × 10%)
= $110 + $11
= $121
Answer: Using an information circular
Explanation: An information circular is used by organizations to send key informations to workers there, it is normally sent ahead of time to allow for proper planning on the path of workers to ensure compliance.
As an employer I would send out an information circular prior to the meeting to ensure full attendance of my staff.
Answer:
15.18%
Explanation:
Calculation for the nominal annual rate
First step is to find EFF% using this formula
EFF%=[1+(Nominal rate percentage/Numbers of months in a year )]^Numbers of months in a year
Let plug in the formula
EFF%=[1+(15%/12)^12
EFF%=(1+0.0125)^12
EFF%=(1.0125)^12
EFF%=1.1608×100%
EFF%=116.08%
Second step is to find Rnom compounding quarterly of 116.08% using this formula
Rnom compounding quarterly = (1+(R/4)^4
Let plug in the formula
Rnom compounding quarterly= (116.08%)^(1/4) Rnom compounding quarterly= 1+ R/4
Hence,
Rnom compounding quarterly = 15.18%
Therefore Anne Lockwood should quote her customers with Rnom compounding quarterly of 15.18%