Ask question

Ask question

All categories

Liono4ka [1.6K]

3 years ago

13

a firm decided to spent 2% of its profit onn free education to the children of nearby area. indicate the value involved in this

decision

1 answer:

OlgaM077 [116]3 years ago

8 0

Positive reputation in local community would attract new customer

You might be interested in

Which investment type typically carries the least risk

iren [92.7K]

I think it would be the fixed income market. Hope this helps you.
<span />

5 0

3 years ago

Read 2 more answers

Sharmer Company issues 5%, 5-year bonds with a par value of $1,000,000 and semiannual interest payments. On the issue date, the

nexus9112 [7]

Answer:

$957,349

Explanation:

the market price of the bonds = PV of face value + PV of coupon payments

PV of face value = $1,000,000 / (1.03)¹⁰ = $744,094

PV of coupon payments = $25,000 x 8.5302 (PV annuity factor, 3%, 10 periods) = $213,255

market price of the bonds = $744,094 + $213,255 = $957,349

journal entry to record the issuance of the bonds:

Dr Cash 957,349

Dr Discount on bonds payable 42,651

Cr Bonds payable 1,000,000

5 0

3 years ago

Martha Gentry won a $16,800,000 lottery and elected to receive her winnings in 30 equal annual installments. After receiving the

professor190 [17]

Answer:

Discount Rate = 9%

Explanation:

Martha won: $16,800,000

Number of installments = 30

The annual payment = amount won/ number of installments

= 16,800,000 / 30 = $560,000

___________________________

Individual share of 50% each = $560,000 * 50% = $280,000

Since the investor offered Martha $2,555,980 which is the future value for the remaining period of 20 years, we have:

Future Value = Present Value x PVAF (I, 20 Years)

$2,555,980 = $280,000 × PVIFA (I, 20 years)

PVIFA (I, 20 years) = 2555980/280000

PVIFA (I, 20 years) = 9.1285

From Present value annuity Tables, the factor value for 20 years 9.1285 is for 9%

Therefore, the discount rate the investor used in calculating the purchase price is 9%

7 0

3 years ago

for brainliest and 100 points !!!!the unemployment rate is 5%. there are 139179 people working in the country. calculate the lab

lukranit [14]

Answer:

I think the answer is 2783580

5 0

3 years ago

Read 2 more answers

Springfield mogul Montgomery Burns, age 80, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Bur

masha68 [24]

Answer:

Springfield mogul, Montgomery Burns

How large of an annual deposit must be made to fund Mr. Burns retirement plans:

= $94,644,751.67

Explanation:

a) Data and Calculations:

Age of Mr. Burns now = 80 years

Retirement age = 100 years

Annual withdrawal at the beginning of each year for 10 years = $500 million

Special offshore account pays interest = 18% annually

Investment for funding retirement:

Deposits = 20 equal end-of-the year deposits in the same special offshore account above.

b) Calculation of Future value of annual deposit after 20 years:

FV (Future Value) $13,877,572,093.01

PV (Present Value) $2,651,510,914.01

N (Number of Periods) 10.000

I/Y (Interest Rate) 18.000%

PMT (Periodic Payment) $500,000,000.00

Starting Investment $0.00

Total Principal $5,000,000,000.00

Total Interest $8,877,572,093.01

c) Calculation of Annual Deposit to reach the future value target of $13,833,567,810.87:

FV (Future Value) $13,877,567,810.87

PV (Present Value) $506,609,362.98

N (Number of Periods) 20.000

I/Y (Interest Rate) 18.000%

PMT (Periodic Payment) $94,644,751.67

Starting Investment $0.00

Total Principal $1,892,895,033.42

Total Interest $11,984,672,777.45

d) Mr. Burns will need to contribute $94,644,751.67 at the end of each period to reach the future value of $13,877,572,093.01. Both the future value of deposits of $13,877,567,810.87 and the annual periodic payment of $94,644,751.67 are determined using online financial calculator.

4 0

3 years ago