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3 years ago

What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment

Business

1 answer:

Doss [256]3 years ago

6 0

Answer:

$882.03

Explanation:

Interest rate used is 7.23%

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 to 12 = 58

cash flow in year 13 = 1058

I = 7.23

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $79,000 to an employee of the company and r

OLEGan [10]

Answer:

1 July 2017 Notes receivable $79000 Dr

Cash $79000 Cr

31 Dec 2017 Interest receivable $3950 Dr

Interest revenue $3950 Cr

30 June 2018 Interest receivable $3950 Dr

Interest Revenue $3950 Cr

1 July 2018 Cash $7900 Dr

Interest receivable $7900 Cr

1 July 2018 Cash $79000 Dr

Notes receivable $79000 Cr

Explanation:

The receipt of note against issuing loan will cause a credit to cash against notes receivable.

The interest from July to Dec 2017 relates to 2017. Following accrual principle it will be recorded as interest revenue and as it is not received so an asset Interest receivable will be debited.

The interest expense for 6 months is = 79000 * 0.1 * 6/12 = 3950

First we will record the remaining interest on 30 June 2017. Remaining interest = 7900 - 3950 = 3950

Then we will debit cash on July 1 when interest is received and credit interest receivable to close the account.

The cash will be debited and notes receivable account will be closed by crediting it.

8 0

3 years ago

Boxes of Honey-Nut Oatmeal are produced to contain 15.0 ounces, with a standard deviation of 0.15 ounce. For a sample size of

umka2103 [35]

Answer:

A. Upper control limit = 15.06

B. Lower coontrol limit= -14.93

Explanation:

Total content in the box, μ = 15

Sample, n = 49

Standard deviation, σ = 0.15

A. Upper control limit = μ+Aσ

= μ+ $\frac{3}{\sqrt{n} }$ σ

= 15+ $\frac{3}{\sqrt{49}}$ ×0.15

= 15.06

B Lower Control Limit = μ-Aσ

= μ· $\frac{3}{\sqrt{n} }$ σ

= 15- $\frac{3}{\sqrt{49} }$ × 0.15

= -14.93

7 0

3 years ago

A company estimates the following manufacturing costs for the next period: direct labor, $500,000; direct materials, $181,000; a

Alex_Xolod [135]

Answer:

1) 24.4%

2) 67.4%

Explanation:

The basis on which overheads are to be applied is considered under 'denominator' value.

Numerator = Estimated factory $122,000

Denominator = Direct Labor $500,000

Overhead Rate = 122,000 / 500,000 = 0.244 ==> 24.4%

Numerator = Estimated factory overhead $122,000

Denominator = Direct Material $181,000

Overhead Rate = 122,000 / 181,000 = 0.674 ==> 67.4%

3 0

3 years ago

Describe two other criterias that are required in order to be considered for a bachelor's degree

anastassius [24]

Answer:

The two main criteria for consideration of bachelor's degree program,

Pre requisite subjects. This is a must to have requirement. ...

Merit based. This is also a must to pass requirement.

Explanation:

;)

6 0

3 years ago

A company has decided that it no longer needs to extensively count and inspect the products it buys from a particular supplier.

agasfer [191]

Answer: False

Explanation:

The VOLUME CONSOLIDATION Stage is where a company attempts to reduce the number of suppliers that it has and consolidates the volume of sales it does through them.

This strategy helps in having a better relationship with suppliers as well as earning a claim on their business which would go a long way in price negotiation.

3 0

3 years ago