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ziro4ka [17]
3 years ago
14

what is the present value of $7500 per year, at a discounted rate of 7.1%, of the first payment is received 6 years from now and

the last payment is received 25 years from now
Business
1 answer:
ss7ja [257]3 years ago
5 0

Answer:

PV= $50,981.17

Explanation:

<u>First, we need to calculate the future value at the end of the period:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {7,500*[(1.071^19) - 1]} / 0.071

FV= $283,234.78

<u>Now, the present value:</u>

PV= FV/(1+i)^n

in this case n=25 years

PV= 283,234.78 / (1.071^25)

PV= $50,981.17

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A study examined the employment benefits of getting a PhD degree.PhD degree. The researchers made inferences based on employment
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Answer:

Option D

Explanation:

This is the group whom the researcher wants to know more about and to draw inference from.

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Blaine company had these transactions pertaining to stock investments:
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On December 31, 2021, Perry Corporation leased equipment to Admiral Company for a five-year period. The annual lease payment, ex
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$20,000

Explanation:

Calculation to determine by what amount will Perry's earnings increase due to this lease

Using this formula

Selling price=Fair value-Cost

Let plug in the formula

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Selling price=$20,000

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A special surveillance and rescue team is being deployed to counter the menace of pirates in the Indian ocean. Nick, Sid, Leah a
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The correct answer is (e)

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7 0
2 years ago
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature o
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Answer:

The price of the bonds $483,841.97    

Journal entry:

Dr cash $483,841.97    

Dr discount on bonds payable $16,158.03    

Cr bonds payable $500,000.00

Explanation:

Using a financial calculator, we determine the bond price by using the following inputs:

N=8(number of semiannual coupons in 4 years=4*2=8)

PMT=22500 (semiannual coupon=face value*coupon rate*6/12= $500,000*9%*6/12=$22,500)

I/Y=5(semiannual yield=10%%*6/12=5%)

FV=500000( the face value is $600,000)

CPT PV=$483,841.97    

Bond discount=face value-bond price

Bond discount=$500,000-$483,841.97    

Bond discount=$16,158.03    

The double entries are to debit cash and discount on bonds payable with $483,841.97 and $16,158.03  respectively while bonds payable is credited with the face value of $500,000

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3 years ago
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