Answer:
Ans. The annuity that will be equivalent to the publisher´s advance would be $26.40 per year, for 9 years at 7% interest rate.
Explanation:
Hi, first, let´s bring that $500 to be paid in 9 years to present value, we need to use the following formula.

Where: r is our discount rate (7%) and n the periods from now when she will receive that $500 amount. This should look like this.

Ok, so the equivalent amount of money today of those $500 in nine years is $271.97, but the author wants $100 today so the remaining amount has to be used to find the equal annual payments to be made in order to be equivalent to re remaining balance ($171.97). We now need to use the following equation.

And we solve for "A" like this




Therefore, the equivalent amount of money of $500 in 9 years is $100 today and $26.40 every year, at the end of the year, for nine years.
Best of luck.
 
        
             
        
        
        
The shareholder equity is equal to:
$28/share * 13 700 shares = $ 383,600
This is the total capital of Davidson International. Now, assuming that there is no additional income since it is not implied in the problem, the total equity does not change. However, the shares become: 13,700 + 500 = 14 200 shares.
Price per share now becomes:
$383 600 / 14 200 shares = $27/share
 
        
             
        
        
        
Answer:
Year 2= $4,687.5
Explanation:
Giving the following information:
Purchase price= $34,000
Useful life= 8 years
Salvage value= $9,000
<u>To calculate the depreciation expense under the double-declining-balance, we need to use the following formula:</u>
<u></u>
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= [(34,000 - 9,000)/8]*2= $6,250
Year 2= [(25,000 - 6,250)/8]*2= $4,687.5
 
        
             
        
        
        
Answer:
earn money, make a change, fulfill their dreams
Explanation:
 
        
                    
             
        
        
        
Answer:
-  $700,000
<u>- 82,270</u>
<u>- </u> $617,730
 - present value of $1: n=4, i=5%
- the present value of an ordinary annuity of $1: n=4, i=5%
Explanation:
Amount to be recovered (fair value):                                              $700,000
Less: Present value of the residual value ($100,000 x .82270*):      82,270
Amount to be recovered through periodic lease payments:           $617,730
Lease payments -: end of each of the next four years: ($617,730 ÷ 3.54595**) $174,207
* present value of $1: n=4, i=5%
** present value of an ordinary annuity of $1: n=4, i=5%