Answer and Explanation:
The indication of the following transactions for the cash flow statement is given below:
a. Operating activities
b. Operating activities
c. Financing activities
d. Financing activities
e. None
f. Financing activities
g. Investing activities
h. Investing activities
i. Operating activities
j. OPerating activities
A. For knowing today's value of the bequest we need to know the period of time.
When the first payment occure and how many payments were made.
b. Immediate value of bequest is $3,000 After one year it needto be 1.16*3,000=$3,480 Plus the second payment will be 1.04*3,000=$3,120
Pn = P0(1+r)∧n
Pnis future value of P0
P0 is original amount invested
r is the rate of interest
n is the number of compounding periods (years, months, etc.)
P(n) = 2250(1+(.03/4)∧8
** since the interest is compounding quarterly, you need to divide the rate by 4, the number of quarters in a year.
Then you would do the math.
