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SashulF [63]
2 years ago
8

You buy an annuity which will pay you $12,000 a year for ten years. The payments are paid on the first day of each year. What is

the value of this annuity today at a 7% discount rate?
Business
1 answer:
Kruka [31]2 years ago
7 0

Answer:

PV of annuity due = $90,182.8 (Approx.)

Explanation:

Given:

Payment per year = $12,000

Number of year = 10

Interest rate = 7% = 0.07

Find:

PV of annuity due

Computation:

PV of annuity due = P + P[{1-(1+r)⁻⁽ⁿ⁻¹)/r]

PV of annuity due = 12,000 + 12,000[{1-(1+0.07)⁻⁽¹⁰⁻¹)/0.07]

PV of annuity due = $90,182.8 (Approx.)

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The following selected amounts are available for Thomas Company.Retained earnings (beginning) $2,500Net loss 200Cash dividends d
AfilCa [17]

Answer:

c. $1,900

Explanation:

As for the information provided, we have:

Retained Earnings opening balance = $2,500

Current year loss = $200

Balance of retained earnings after this = $2,500 - $200 = $2,300

Now, dividends are provided which shall be paid from retained earnings only.

Cash dividends are the one paid in cash.

Stock dividends are the ones which are paid by issue extra shares from retained earnings.

Thus, both are deductible from retained earnings.

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Diminishing marginal utility of wealth implies that the utility function. Group of answer choices
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c. has decreasing slope and a person is risk averse.

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7 0
3 years ago
What are some ways to make a higher education more affordable?
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8 0
3 years ago
Read 2 more answers
On January 1, 2004, Kay Inc. issued its 10% bonds in the face amount of $400,000, which mature on January 1, 2014. The bonds wer
DaniilM [7]

Answer:

Unamortized discount is $43,700

Explanation:

Unamortized bond discount=original bond discount-amortization to date

original bond discount is $46,000

Amortization =interest  payable-interest expense

interest payable=$400,000*10%*6/12

                            =$20,000

Interest expense=$354,000*10%*6/12

                             =$17,700

amortization of discount=$20,000-$17,700

                                        =$2300

unamorized bond discount=$46000-$2300

                                            =$43,700

The unamorized bond discount at the end of the first six months is $43,700

                     

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3 years ago
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