1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Trava [24]
2 years ago
6

Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $3,500 under each of the fol

lowing situations:
a. The first payment is received at the end of the first year, and interest is compounded annually.
b. The first payment is received at the beginning of the first year, and interest is compounded annually.
c. The first payment is received at the end of the first year, and interest is compounded quarterly.
Business
1 answer:
Katena32 [7]2 years ago
7 0

Answer:

a. The first payment is received at the end of the first year, and interest is compounded annually.

present value = annual payment x PVIFA

annual payment = $3,500

PVIFA, 12%, 5 periods = 3.6048

present value = $12,616.80

b. The first payment is received at the beginning of the first year, and interest is compounded annually.

annual payment = $3,500

PVIF annuity due, 12%, 5 periods = 4.0373

present value = $14,130.55

c. The first payment is received at the end of the first year, and interest is compounded quarterly.

present value = annual payment x PVIFA

annual payment = $3,500

effective interest rate = 1.03⁴ - 1 = 12.55%

PVIFA, 12.55%, 5 periods = 3.5562

present value = $12,446.70

You might be interested in
Fox Corp. failed to accrue warranty costs of $150,000 in its December 31, 20x2, financial statements. In addition, a $130,000 ch
faust18 [17]

Answer:

$150,000

Explanation:

$150,000

The failure to accrue warranty expense is an accounting error. It gives rise to a Prior period adjustment in the year of discovery (20x3).

Prior period adjustments are limited to corrections of errors affecting prior-year net income. They adjust the beginning balance of retained earnings in the year of correction.

The change in depreciation method is an estimate change, which is reported in earnings. It is not a Prior period adjustmen

8 0
2 years ago
The ________ created a multimember executive, whereas the ________ created a one-person executive
4vir4ik [10]
<span>The looser interpretation of the law created a multimember executive whereas the strict interpretation created a one-person executive. This filling in of the blanks creates an appropriate and meaningful sentence. Laws may be open to various interpretations. If "person" was thought to be a singular physical person, that would give rise to a strict interpretation for the purposes of the law and a "one-person executive". Operational definitions are important, and "person" could be interpreted as an "entity" or a "collective" in which case the looser interpretation of a law would be at play to create the "multi-member executive".</span>
5 0
2 years ago
Why do you think it is important to consider both salary and benefits when applying for a job?
alexira [117]

Answer: It is important because an employee needs to have other rights beyond a salary.

Explanation: Although it is true that a person who applies for a job in return receives a salary, many times the work to do for the development and well-being of the company is greater than what he receives. Many people work tirelessly so that the place where they are working can continue to function properly. In many cases, the salary you receive is a salary that may be little and that does not compensate for many things. The benefits give the employee the opportunity to enjoy certain things and thus lighten the burden of him since not everything has to come from salary.

7 0
3 years ago
Suppose a three-person comittee is formed for a culb by drawing names out of a hat. If the expected number of women is 2 and the
tangare [24]

Answer: 20 women

Explanation:

Making the total number of women in the club 'x', we can then do the following,

Total Number of Names in Hat, N

N = x + 10 ( total number of men)

therefore total number of names in the hat N=x+10

We need to select 3 people so sample size = 3

Using the Hypergeometric Distribution then we can then use the formula,

Expected number of women on the Committee = k * n / N

Where k is the total number

2 = x * 3 / (x + 10)

2 = 3x/(x +10)

3x = 2x +20

x = 20

There are 20 women in the club.

8 0
3 years ago
Kremena's bank account earns 4.5% simple interest. How much must she deposit in the account today if she wants it to be worth $1
12345 [234]

Answer:

$1,101.32

Explanation:

Simple interest accounts balances are calculated using the following formula

A = P ( 1 + rt)

where:

A = final account balance

P = starting balance

r = interest rate (annually) percentage divided by 100

t = years

Therefore, we can plug in the values provided in this formula and solve for P which would be the amount that Kremena needs to deposit.

1,250 = P ( 1 + (0.045 * 3))

1,250 = P * 1.135  ... divide both sides by 1.135

1,101.32 = P

Finally, we can see that Kremena would need to deposit a total of $1,101.32 to have the amount that she wants after 3 years.

4 0
2 years ago
Other questions:
  • Prepare general journal entries to record the following transactions for the Harris
    13·2 answers
  • Under which of the following conditions will the FIFO method produce the same cost of goods manufactured as the weighted-average
    6·1 answer
  • Oooops! I just found out that Florida is not next door. In fact, it will cost me $600 just to get to Florida, regardless of how
    9·1 answer
  • An excess of merchandise exports over merchandise imports results in a balance of trade deficit. True False
    14·1 answer
  • Polar Industries makes refrigerators. Polars management wants to market refrigerators to students in dorm rooms and small apartm
    15·1 answer
  • Oiiiiiiiiiii whats up guys
    10·1 answer
  • KCCO, Inc., has current assets of $4,200, net fixed assets of $23,400, current liabilities of $3,750, and long-term debt of $8,4
    5·1 answer
  • Hey I was wondering if someone could make a study guide for my 7th grade final (I finished most of it.) I'll give lots of points
    10·2 answers
  • 1. Which of the following is true about finding the present value of cash flows?
    8·1 answer
  • a segregation of duties among employees always eliminates the possibility of collusion. group of answer choices true false
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!