Answer:
Bond price=$888.35
Explanation:
<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate</em>
<em>Value of Bond = PV of interest + PV of RV</em>
The value of bond for Local School District can be worked out as follows:
Step 1
PV of interest payments
PV = A × (1+r)^(-n)/r
A-annul interest payment:
= 7.5% × 1,000× = 75
r-Annual yield = 8.6%
n-Maturity period = 25
PV of interest payment:
=75× (1- (1+0.086)^(-25)/0.086)
= 761.22
Step 2
<em>PV of Redemption Value</em>
= 1000 × (1.017)^(-25)
= $127.131
Step 3
<em>Price of bond</em>
=761.222 + 127.13
=$888.35
Answer:
The total cost of the phone is $1,270.56
Explanation:
The total cost of the phone is computed as:
Total cost = Cost of phone for 2 years + Cost of warranty coverage for 2 years
where
Firstly, the cost of phone for 2 years is computed as:
Cost of phone =( For first year) Per month Cost × 12 months +( For second year ) Per month Cost × 12 months
= $39.95 × 12 + $39.95 × 12
= $ 479.4 + $479.4
=$958.8
Then, the Cost of warranty coverage for 2 years is computed as:
Cost of warranty = ( For first year) Per month Cost × 12 months +( For second year ) Per month Cost × 12 months
= $12.99 × 12 + $12.99 × 12
= 155.88 + $155.88
= $311.76
Therefore, the total cost would be:
Total cost = $958. 8 + $311.76
= $1,270.56
Answer:
C. Internal Models use sensory information for motor control but do not to consider physiological or biomechanical features of the body.
We can find the increase in operating income for each $ 1,000 increase in revenue per month by finding the contribution margin ratio and the multiplying it with the increase operating income of $ 1,000 each.
The formula to find the contribution margin ratio is :-
Contribution margin ratio = Contribution margin per unit / Selling price per unit
= 12 / 20 = 60%
The increase in operating income = Contribution margin ratio * Revenue
= 60 % * 1,000
= $ 600
The calculations are shown below :-
Selling price per unit = $ 20
Variable cost per unit = $ 8
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $ 20 - $ 8 = $ 12