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2 years ago

You are given:

Business

1 answer:

Dmitry [639]2 years ago

5 0

Answer:

0.087 = 8.7%

Explanation:

Present value of perpetuity given that payment is done at the end of N-year

= present value * ( 1 + i )^n-1

= 169 * ( 1 + i )^n-1 = 100 / i

∴ ( 1 + i )^n-1 = 100 / 169i ------- ( 1 )

Given that first payment at the end of N years = 2112.50 hence the present value of 2112.50

= 2112.50( 1 + i )^n-1 = 100 / i + 100/ i^2 --- ( 2 )

(given that the increment is with a difference of 100 ) and N-1 = number of years

next step : Input equation 1 into equation 2

2112.50 i^2 = 169i [ 100i + 100 ]

19350 i^2 = 16900i

∴ i = 16900 / 19350 = 0.086956 ≈ 0.087

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Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiann

Mademuasel [1]

Answer:

$680,759

Explanation:

In order to calculate the interest expense in the year 2022, we need to calculate the percentage of effective interest first.

Interest rate = Interest for period 1/ opening outstanding balance

Interest rate = $344,632/11,487,747

Interest rate = 0,0299 or 3%

Interest expense for first 6 months of 2022 = $341,261

Interest expense for remaining 6 months of 2022 = 11,316,611 x 3%

Interest expense for remaining 6 months of 2022 = $339,498

Total interest expense for 2020 = $341,261 + $339,498

Total interest expense for 2020 = $680,759

6 0

3 years ago

A stability strategy is a grand strategy that involves little or no significant organizational change. For example, Love Forever

In-s [12.5K]

Answer:

The correct answer is letter "A": True.

Explanation:

Stability strategies are those in which the firm does not change its core method of working, thus, it remains to focus on its current products and markets. Carrying out stability strategies is a less risky approach. The types of stability strategies can be no-change strategy; profit strategy; and growth through concentration, integration, diversification, co-operation, internationalization.

6 0

3 years ago

Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and othe

Svet_ta [14]

Answer:

A silent partner

Explanation:

A silent partner is a partner whose liability is limited to the amount invested in the project. Also, a limited partner hardly takes part in the day to day running of the business.

I hope my answer helps you

8 0

3 years ago

Do all states pay the same unemployment compensation and for the same length of time?

kondaur [170]

Answer:

Explanation:

Ultimately, the onus is on the state government to balance the checkbook, so the state has to decide the benefits maximum amount, duration, and eligibility to receive the benefits. For this reason, you notice that unemployment benefits largely vary by state. Some states like Massachusetts could pay as high as $1,220 depending on the eligibility criteria.

4 0

3 years ago

Knowledge Check 01 Zeta Corporation issues $100,000 of 8% bonds maturing in 10 years on January 1, Year 1, when the market rate

alexandr1967 [171]

Answer:

$106,595

Explanation:

Given:

Initial market rate = 9%

Dropped market interest rate, r = 7% per year

= 7% × [6 ÷ 12]

= 3.5% = 0.035

Remaining time, n = 9 years = 18 semi annual periods

Now,

Value of the bond at the retirement

= [ PVAF × Interest payment] + [ PVF × face value]

here,

Present value of annuity factor, PVAF = $\frac{1 -(1+r) ^{-n}}{r}$

PVAF = $\frac{1 -(1+0.035) ^{-18}}{0.035}$

PVAF = 13.189

And,

Interest payment = $100,000 × 8% × [6 ÷ 12 ] [since, 8% bonds]

= $4000

Present value factor = $\frac{1}{1.035^{18}}$

= 0.538

par value = $100,000

= [13.189 × $40] + [0.538 × 100,000]

= 52,758.7316 + 53,836.114

= $106,595

Hence,

The correct answer is option $106,595

8 0

3 years ago