Answer:
You need to deposit $58,481.53 today.
Explanation:
a) Data and Calculations:
Future value expected = $125,000
Period of investment = 7 years
Interest rate = 11% compounded quarterly
The amount of deposit needed today to earn $125,000 in 7 years at annual interest rate of 11% is calculated as follows:
N (# of periods) 28
I/Y (Interest per year) 11
PMT (Periodic Payment) 0
FV (Future Value) 125000
Results
PV = $58,481.53
Total Interest $66,518.47
Answer:
Investors use income statements to determine the profitability of a company over time. ... This is the amount that a company would pay shareholders, per share, if the company paid out all of its net income as dividends.
Explanation:
Answer:
$737,000
Explanation:
The computation of the current earnings and profits this year is shown below:
= Taxable income - federal income tax paid - disallowed entertainment expenses + tax-exempt interest - net capital loss
= $1,200,000 - $408,000 - $25,000 + $20,000 - $50,000
= $737,000
Since we add the exempted interest and deduct all other expenses, losses, and taxes to the taxable income so that accurate value can come
Answer:
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- <u><em>Option C. $105,608.11</em></u>
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Explanation:
Basis:
- Interest compounded monthly
- rate = 0.021/12 = 0.00175
1. Year 1:
All the figures in dollars.
- Initial balance: 0
- Initial balance + interest = 0
- Deposit at the end of the year: 23,500
- Final balance: 23,500
2. Year 2:
All the figures in dollars.
- Initial balance: 23,500
- Initial balance + interest: 23,500 (1 + 0.00175)¹² = 23,998.28
- Deposit at the end of the year: 24,500
- Final balance: 24,500 + 23,998.28 = 48,498.28
3. Year 3:
All the figures in dollars.
- Initial balance: 48,498.28
- Initial balance + interest: 48,498.28(1 + 0.00175)¹² = 49,526.60
- Deposit at the end of the year: 26,500
- Final balance: 26,500 + 49,526.60 = 76,026.60
4. Year 4:
All the figures in dollars.
- Initial balance: 76,026.60
- Initial balance + interest: 76,026.60(1 + 0.00175)¹² = 77,638.62
- Deposit at the end of the year: 28,000
- Final balance: 28,000 + 77,638.62 = 105,638.62
Assuming differences in rounding intermediate values, the answer is the option C.
