Answer:
e) $21,804
Explanation:
Annuity payments at the end of each year is an Ordinary Annuity . Using a financial calculator, input the following;
Total duration; N = 12
Interest rate; I/Y = 10%
Onetime future value ; FV = 0
recurring payment ; PMT = 3,200
then compute Present value; PV = 21,803.814
Therefore, she would deposit $21,804 in her account today. This makes choice E correct.
Answer:
- a. The company debited Interest Expense
- d. The company credited Cash
Explanation:
The coupon payment represents the interest payment being paid by the company on the bond. They will therefore record this coupon by debiting it to the Interest expense account as expenses are debited when they are incurred.
The same amount will be credited to the Cash account because the payment will come from the cash holdings of the company. Cash is an asset account so it is credited when it reduces.
Answer:
The correct answer is b) because the lessee may have greater flexibility in abandoning the project in which the leased property is used than if the lessee bought and owned the asset.
Explanation:
A clear example of the previous statement is when, for work reasons, for pleasure, or because you want to change the environment; You want to change the house to a better or bigger one. However, it is not so easy, because the house where you currently live, you are the owner. And if you want to change of residence, you first have to rent or sell the house where you are living.
While if the house is leased, the last day of the month or depending on the contract, you can change of residence.
That's why leasing is considered better.
Answer: Fiction
Explanation: According to some theorists, public opinion is a rhetorical construction. This means that it is a phantom, having no real link to "the public" as citizens. These theorists go on to claim that politicians and journalists tend to state that public opinion regarding a certain issue is concluded without any available evidence, or public's influence. However this is only one form of the definition of public opinion.
Other types of definitions include:
Public opinion is an aggregation: Journalists and politicians claim public opinion is the total of a lot of individual opinions.
Public opinion reflects the majority's beliefs: Theorists claim that public opinion is the equivalent of the values and beliefs of the majority.
Public opinion is discovered in groups clashing: Some theorists believe public opinion lies in power dynamics within a group, and how it coexists, or fails to do so, with other groups.
Public opinion reflects media: Theorists believe that public opinion is best gathered from what politicians, journalists and other influential elites believe.
First solve for the Present Value of a perpetual stream of $1250 payments, using a discount rate of 14.6%.
This calculation is pretty simple as the formula is:
Payment Amount / Interest rate
1,250÷0.146=8,561.6438356164
Then, since you won't start receiving the annual payments for another 17 years (T=25 vs T=8), you need to discount that figure back another 17 years.
That formula is
PV=FV / (1 + i)^n
PV=8,561.6438356164÷(1+0.146)^(17)
PV=844.148 round your answer to get 844
