Answer:
The correct answer is D: $10,329
Explanation:
Giving the following information:
You want to have the equivalent of $700,000 (in terms of today's spending power) when you retire in 30 years. Assume a 3% rate of annual inflation. The interest rate is 10% annual.
First, we need to determine how much is $700,000 in 30 years.
FV= PV*(1+i)^n
FV= 700000*(1.03^30)= $1,699,083.73
Now, we can calculate the annual payment required using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,699,083.73* 0.10)/[(1.10^30)-1]= $10329
Answer:
the number of units that generated net income is 51,429 units
Explanation:
The computation of the number of units that generated net income is shown below:
Here we have to find the break even point i.e. shown below:
= (Net income + fixed cost) ÷ (contribution margin per unit)
= ($80,000 + $100,000) ÷ ($3.50)
= 51,429 units
hence, the number of units that generated net income is 51,429 units and the same is to be considered
Answer:
a. Both the equilibrium price and quantity will go down.
Explanation:
On those days, it will be a decrease in the demand which will make the demand quantity to go down which will generate a shift in the demand curve to the left and with less people willing to buy gasoline, the equilibium quantity will drop and in order to sell, the price will drop too.
Answer:
A. $ 748,714
Explanation:
This 10-year bond with semiannual coupon payment will have 20 coupon payments plus 1 par payment at maturity. The bond price issuing price is the present value of all coupon payments as well as par value. Let formulate the bond price as below:
Bond price = [(Coupon rate/2) x (Par value)]/[1 + (Market interest rate/2)] + [(Coupon rate/2) x (Par value)]/[1 + (Market interest rate/2)]^2 + ...+ (Coupon rate/2) x (Par value) + Par value]/[1 + (Market interest rate/2)]^20
Putting all the number together, we have:
Bond price = [(10%/2) x (950,000)]/[1 + (14%/2)] + [(10%/2) x (950,000)]/[1 + (14%/2)]^2 + ...+ (10%/2) x (950,000) + 950,000]/[1 + (14%/2)]^20 = 748,714
Answer:
Plan a training program properly. ... Show that the goals are achievable and what must be demonstrated in terms of consistency to show that training is complete and successful. Set clear targets. Use the best person to deliver the training – their knowledge and enthusiasm will be the example that the trainees follow.
Explanation: