When reporting errors or unauthorized transactions, it is appropriate to notify your bank?

On January 1, 2018, Burleson Corporation’s projected benefit obligation was $48 million. During 2018 pension benefits paid by th

aleksklad [387]

Answer:

$59.8 million.

Explanation:

At the beginning of the year, the Projected Benefit Obligation (PBO) was $48 million, however, during the year this amount was affected by several factors that are explained in the problem statement: the service cost ($13 million), the interest costs (defined by a discount rate of 10%) and the pension benefits paid by the company ($6 million).

To understand how it was modified exactly, first, we will do a theoretical analysis and then present it more <em>graphically</em> as a financial statement.

1. Theoretical analysis

Firstly, a Projected Benefit Obligation (PBO) is a measure that reflects how much a company needs at the present time (December 31, 2018) to cover future pension liabilities. We know that the year began with a PBO of $48 million. However, this amount must be added to the service costs ($13 million), which is the increase in the present value of the liabilities, because the employees have completed another year in the company and that implies an increase in their pension credit.

Therefore, so far, the PBO at December 31, 2018 is $61 million. To this amount must be added the interest cost which is the annual interest amount on the unpaid balance of the PBO. In this case, an interest rate of 10% is handled. Therefore the amount of interest is equal to $48 million (original PBO) * 10% = 4.8 million.

So far, the PBO at December 31, 2018 is $61 + $4.8 = $65.8 million

Finally, the pension benefits paid by the trustee during 2018 should be subtracted, since they are a partial payment of the PBO.

Therefore, we have: $65.8 - $6 = $59.8

2. As a financial statement.

Pension obligations

Year Ended At December 31, 2018

Change in benefit obligations

Beginning PBO $48

Service cost $13

Interest cost $4.8

Benefits paid ($6.0)

Ending PBO $59.8

6 0

3 years ago

What is the difference between demand and quantity demand?.

sertanlavr [38]

Answer:

Uh, demand is wanting a thing and quantity demand is wanting more of that thing?

Explanation:

8 0

2 years ago

A(n) _____ is in control of an agency relationship because he or she defines the tasks and objectives of the relationship./pract

NARA [144]

Answer:

Principal

Explanation:

The principal has the right to abolish the relation or set the objectives of the agent and allocation of task and authority delagated to the agent. This control is given to principal by law to protect his interests.

8 0

3 years ago

Fiscal policy is: Select one:

Nadya [2.5K]

Answer:

d. more effective in dealing with real shocks than aggregate demand shocks.

Explanation:

Fiscal policy are more effective in dealing with real policy shocks than the monetary policy. The correct answer is d. more effective in dealing with real shocks than aggregate demand shocks.

7 0

3 years ago

Harriet used her credit card to buy a $779 laptop, which she paid off by making identical monthly payments for two and a half ye

pshichka [43]

Interest is the charge that is levied on the principal at a fixed percentage. The percentage of interest in the lifetime cost of the laptop is 13.7%.

<h3>What is interest?</h3>

Interest is the payment that the borrower incurs as a percentage of the principal for borrowing money.

Compound interest refers to the interest calculated on the principal and the interest up to the current interest period. The compound interest can be calculated using the formula:

$\rm Compound\:interest = P(1+ \dfrac{r}{n})^{nt} - P$ , where P is the principal amount, r is the rate of interest, n is the number of times the interest is compounded, and t is the tenure. The total number of period is represented as nt.

The total lifetime cost of the laptop will be the combination of its purchase price, interest, and electricity expense.

Given,

The value of the laptop (P) is $779

The number of years of the loan is 2.5 years.

The APR is 11.27%.

The interest on the laptop will be:

$\rm Compound\:interest = P(1+ \dfrac{r}{n})^{nt} - P\\\\\rm Compound\:interest = \$779(1+ \dfrac{0.1127}{12})^{(12)(2.5)} - \$779\\\\\rm Compound\:interest = \$779(1.0094)^{30} - \$779\\\\\rm Compound\:interest = \$779(1.3237) - \$779\\\\\rm Compound\:interest = \$1031.167 - \$779\\\\\rm Compound\:interest = \$252.167$

The electricity charges for 6 years will be calculated as the product of electricity charges per day and the number of days in 6 years.

Total number of days will be calculated as:

$\rm Total\:number\:of\:days = (365 \times 4) + (366 \times 2)\\\\\rm Total\:number\:of\:days = 2192 \:days$

Therefore electricity charges will be:

$\rm Electricity \:charges = 2192 \times \$0.36\\\\\rm Electricity \:charges = \$789.12$

Hence the total lifetime value of the laptop is:

$\rm Total\: lifetime \:value = \$779 + \$252.167 + \$789.12\\\\\rm Total\: lifetime \:value = \$1830.287$

The percentage of interest in total lifetime value is:

$\rm Percentage\:of\:interest = \dfrac{Interest}{Total\: lifetime \:value}\times 100\\\\\rm Percentage\:of\:interest = \dfrac{252.167}{1830.287}\times 100\\\\\rm Percentage\:of\:interest = 13.7\%$

The difference in answers could be a result of rounding. Therefore the correct option is b.

Learn more about interest here:

brainly.com/question/4605117

3 0

2 years ago