Perpetuity pays $100 each and every year forever. the duration of this perpetuity will be 12.11
Yield rate = 9% or 0.09
Duration of perpetuity = (1+ Interest Rate) / Interest Rate
= 1+ 0.09 / 0.09
= 1.09 / 0.09
= 12.11
A perpetual annuity is a never-ending annuity or series of cash payments that lasts forever. True eternity is rare. For example, the UK government has issued them in the past. These were known as consoles and were all eventually redeemed in 2015. Cash flow is endless.
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Answer:
The correct answer is True.
Explanation:
Osteoarthritis is the most common form of arthritis and affects millions of people worldwide. It occurs when the protective cartilage that cushions the ends of the bones wears out over time.
Although osteoarthritis can damage any joint, the disorder most commonly affects the joints of the hands, knees, hips and spine.
The symptoms of osteoarthritis can usually be controlled, although joint damage cannot be reversed. Staying active, maintaining a healthy weight and some treatments can delay the progression of the disease and help improve pain and joint function.
Gross monthly income:$1,125
Monthly Federal income tax (11.6%): $130.50
Monthly Social security (FICA) (6.2%): $69.75
Monthly Medicare (1.45%): $16.3125
Monthly State Tax (4%): $45
Monthly Local Tax (0.1%): $1.125
Total Monthly deductions $262.6875
Trey’s NMI $862.3125
Explanation:
Calculation for What is his monthly taxes
First step is to calculate the Gross monthly income
Using this formula
Gross monthly income=Annual salary/Numbers of months in a year
Let plug in the formula
Gross monthly income=$13,500/12 months
Gross monthly income=$1,125
Therefore the Gross monthly income is :$1,125
Monthly Federal income tax (11.6%): $130.50
($1,125*11.6%)
Monthly Social security (FICA) (6.2%): $69.75
($1,125*6.2%)
Monthly Medicare (1.45%): $16.3125
($1,125*1.45%)
Monthly State Tax (4%): $45
($1,125*4%)
Monthly Local Tax (0.1%): $1.125
($1,125*0.1%)
Total Monthly deductions $262.6875
($130.50+$69.75+$16.3125+$45+$1.125)
Trey’s NMI $862.3125
Trey’s NMI=Gross monthly income-Total Monthly deductions
Trey’s NMI=$1,125-$262.6875
Trey’s NMI=$862.3125
Therefore his monthly taxes are:
Gross monthly income:$1,125
Monthly Federal income tax (11.6%): $130.50
Monthly Social security (FICA) (6.2%): $69.75
Monthly Medicare (1.45%): $16.3125
Monthly State Tax (4%): $45
Monthly Local Tax (0.1%): $1.125
Total Monthly deductions $262.6875
Trey’s NMI $862.3125
Answer:
The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686
Explanation:
Calculate the PVIFA ( Present value of interest factor annuity ) at r = 12 % and n = 4 years
= [ 1 - (1.12)-4 ] / 0.12 = 3.03734935
Minimum annual cash flow needed = Investment / PVIFA = 403,014 / 3.03734935
= 132686
The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686
Answer:
c. wholesale prices on supplies
Explanation:
- The franchises provide the financial assistance and are limited to only some of the franchises and provide the location services as they have experiences of choosing a successful location.
- <u>Also the training of the people for the manual operations and to carry out the operational services and also serves as the advertising and the efforts on a national regional and the local basis and the needed administrative support in terms of the human resource in the accounting etc.</u>
