Answer:
The correct answer is $20,211.84.
Explanation:
According to the scenario, the given data are as follows:
Payments (PMT) = $600
Interest rate = 7%
Growth rate = 3%
Time = 16 yeras
So, future value of growing annuity can be calculated by using following formula :
FV of growing annuity = Payment × ((1+ interest rate)^n - (1 + Growth rate)^n) / (Interest rate - Growth rate)
= 600 × ((1.07)^16 - 1.03^16) / (.07 - .03)
= 600 × ( 2.95216374857 - 1.6047064391 ) / (0.04)
= 600 × 33.6864
= $20,211.84
Hence, the correct answer is $20,211.84.
Answer:
Quantitatively, Harlan Bikes is justified in deciding to close the department, but there are other qualitative factors that need to be considered which may result in the company loosing much more that they can save if the department is closed, such as for example a decrease in employee morale, a negative signalling effect to other stakeholders, a drop in sales in related products etc.
Explanation:
A decrease in employee morale can result especially if workers in other departments are no-longer sure about their future in the company, resulting from fears of their departments being closed. This can negatively affect productivity resulting in lower profits in other department.
A negative signalling effect means that other stakeholders such as investors and creditors may start questioning managements ability to profitably run the business, and the company will be perceived as more risky. Cost of debt and cost of equity capital for example, may go up, due to this higher perceived risk, and which may reduce the number of positive net present value projects that the company can undertake due to an increase in cost of capital.
If the company carries related products in other departments, it may also see a drop in sales in those sales, which will effectively reduced the savings that are estimated to be gained from closing the division.
Answer:
Please see below.
Explanation:
Below are some of the list a family can provide enrichment for children without elaborate or expensive toys.
1. A family can gather their children and ask them to sing their favorite songs poems. They can also be taught new songs and poems. By doing this, boredom will be eliminated hence enriches them without necessary buying them expensive toys.
2. A family can ask their children to paint any animals they like whether on papers or plywood in different colours This will enable them to develop their innate drawing skills while making fun of the whole process.
3. The family can as well play a quick game with their children. Some games like arm or thumb wrestle could be fun. There is also clapping games or the children can teach the family the clapping games they learnt at school.
4. Children could be asked to tell a story from favorite story books or the parent could create an imaginary story for them. The whole idea is to keep them busy and make it fun as much as possible.
5. There is also riddles and play and cracking of jokes. Children may be asked to crack jokes, play riddles etc. Parents may as well crack jokes and play riddles for them in order to keep them busy and make them have fun.
6. For children who are already in school, the parents could help them solve their maths home work. They may be asked to solve first, after which corrections will be done for them. They may also be given other maths puzzle to solve, just to make them busy and have fun.
The framers of the US constitution separate powers and provide for a system of checks and balances in order to guard against a tyrannical government where one particular branch would have too much power.
<h3>What are the functions of the 3 branches of government.</h3>
Apart from the delegate duties that these three branches have in the government, the way that the framers created them was to ensure that they were able to check each other. They provided checks and balance for each other.
The executive had the power to call the other two to other and so also doe the judiciary and the legislative arm of the government so that the people would not experience a dictatorship.
Read more on the constitution framers here: brainly.com/question/1087677
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Answer:
47,884.79 units of bonds
Explanation:
The units to be sold to arise $87.9 million will be equal to the
$87.9 million / divided by the bond price
The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity. These cash flows include interest payment and redemption value
The price of the bond can be calculated as follows:
Step 1
PV of interest payment
Semi-annual coupon rate = 5.92/2 = 2.96%
Interest payment =2.96%× 2,000= 59.2
Semi annual yield = 6.67%/2 = 3.335
PV of interest payment
= A ×(1- (1+r)^(-n))/r
= 59.2× (1-(1.03335)^(-2×20))/0.03335)
= 1,297.22
Step 2
PV of redemption value
PV = FV× (1+r)^(-n)
= 2,000 × (1+0.03335)^(-2× 20)
= 538.43
Step 3
Price of bond =
= 1297.22 + 538.43
= $1835.65
Step 4
Units to be used
= $87.9 million/ $1,835.65
= 47,884.79 units
