Answer:
a. 9.59% b. 44,114.35
Explanation:
a. The rate of return can be calculated using Financial Calculator by pressing 10 for N(number of years), -4000 for PV (PV=present value), 0 for PMT (because you didn't get any payments during those 10 years) and 10,000 for FV (FV= future value). You hit CPT button and then press I/Y button to find the rate of return. Without a calculator the formula is:
the whole fraction is taken to the power of 1/10
b. You calculate using the formula below:
10000 × (1+ .16)^10
the ^ in the equation above means to the power of 10
Answer:
$142,640
Explanation:
Given that
Present value of annuity = $474,420
Discount rate = 20%
Useful life = 6
The computation of annual benefits is shown below:-
Present value of annuity = Annual Benefits × Present value of annuity factor(20%,6)
$474,420 = Annual benefits × 3.326
Annual benefits = $474,420 ÷ 3.326
=$142,640
So, for computing the annual benefits we simply applied the above formula.
Answer:
True
Explanation:
The company received $15000 and credited it to the unearned consulting Revenue accounts because it had not performed any services yet.
According to the accrual principle, the company can only report the amount earned in a period. If the company achieves the required 10% of consulting services by 31st march, it will record 10 percent of $15,000 as its income.
10 percent of $15000= 10/100 x $15000
=$1500
-animal control
-local road maintenance
-police protection
-fire service
-sewage treatment
-safe drinking water
-safe building regulations
Answer:
$1,443.75
Explanation:
The total cost for paving Sam's portion of the road = $35 per linear foot x 110 front feet = $3,850
If the city is going to pay 25% of the total cost, then it will pay $962.50, that would leave a total of $2,887.50 to be paid between Sam and his front neighbor. So Sam's share = $2,887.50 / 2 = $1,443.75