The formula of the future value of an annuity ordinary isFv=pmt [((1+r)^(n)-1)÷r]Fv future value?PMT yearly payment 1200R interest rate 0.07N time 49 years (70-21)
Fv=1,200×(((1+0.07)^(49)−1)÷(0.07))Fv=454,798.80
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Answer:
For the first year, Griffith will record a revenue of $522. So, option a is the correct answer.
Explanation:
The amount received on 1 April for 36 month subscription is the unearned subscription revenue that will be earned evenly throughout the coming 36 months period starting from April.
The month subscription revenue is,
Monthly subscription revenue = 2088 / 36 = $58 per month
The calendar year ends on 31 December. Following the accrual principle, we will record the revenue as subscription revenue for the period of 9 months from April to December for the year.
The amount of revenue that is to be recorded for the first year is,
Revenue = 58 * 9 = $522
Answer:
The annual rate of return over the entire 15 years was of 5.64%.
Explanation:
Having made an investment for 15 years, with a varying interest rate, it is necessary to add all the annual interests and then divide them by the number of years to determine the average annual interest rate of said investment.
Thus, this investment had an annual interest rate of 3.3% for 7 years, and 7.7% for 8 years. Thus, it had an accumulated interest of 84.7% (3.3 x 7 + 7.7 x 8 = 84.7), which, divided by the 15 years that the investment lasted, give an average annual interest of 5.64% (84.7 / 15 = 5.64 ).