Answer:
some numbers are missing, so I looked for similar questions:
"Tuition of $1044 will be due when the spring term begins in 7 months. What amount should a student deposit today, at 7.62% to have enough to pay the tuition?"
we can use the present value formula to solve this:
present value = future value / (1 + r)ⁿ
- future value = $1,044
- n = 7
- r = 7.62% / 12 = 0.635%
present value = $1,044 / (1 + 0.00635)⁷ = $1,044 / 1.045305791 = $998.75
if the numbers are not the same, just adjust the formula inputting the correct numbers, but the procedure should be the same.
Answer:
What is the present value of the payments if they are in the form of an ordinary annuity?
Discount all cash flows
12,000/1.09=11,009
12,000/1.09^2=10,100
12,000/1.09^3=9,266
12,000/1.09^4=8,501
12,000/1.09^5=7,799
Add all these discounted cash flows= $46,675 is the present value of ordinary annuity
a-2. What is the present value of the payments if the payments are an annuity due?
In an annuity due payment is made at the beginning of the year so we subtract one from each compounding period so,
12,000/1.09^0=12,000
12,000/1.09=11,009
12,000/1.09^2=10,100
12,000/1.09^3=9,266
12,000/1.09^4=8,501
add all these discounted cash flows = $50,876= PV of annuity due
FV of ordinary annuity
PV= 0
PMT=12,000
I= 9
N= 5
FV=? Put these in financial calculator= $71,816
Fv of annuity due=
12,000+
PV=0
PMT=12,000
I=9
N=4
FV=?=66,877
Pv of annuity due is higher and FV or ordinary annuity is higher.
Explanation:
Answer:
Sole proprietor
Explanation:
Sole proprietorship is a form of business in which an individual or a single person owns, control and manages a business. Anybody who is into such kind of business is known as a sole proprietor.
One of the downsides of sole proprietorship is the fact that the owner takes all the risk of the business. In other words, if the business suffers or fails, it is the sole proprietor that would be affected because he/she is the only person in charge of the business.
Fleming corp. provided services on account. The transaction would be recorded with a credit to service revenue. The transaction will also be recorded on the accounts receivable ledger as well. Service revenue is an account used in accrual accounting that reports fee income that a company earns during a specific time frame. Accounts receivable is an account that shoes money that is owed to a company by its debtors.
