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3 years ago

What is the value today of receiving $5,000 at the end of six years, assuming an interest rate of 8% compounded semiannually?

Business

1 answer:

Ulleksa [173]3 years ago

6 0

Answer:

$3,122.96

Explanation:

Future value = 5000

i = 8%

n = 6

m = 2

Present Value = FV(1+i/m)^mn

Present Value = 5,000(1+0.08/2)^-2*6

Present Value = 5,000(1.04)^-12

Present Value = 5,000 / (1.04)^12

Present Value = 5,000 / 1.6010322

Present Value = 3122.985284118583

Present Value = $3,122.96

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Data and Calculations:

Outstanding Common stock shares on Dec. 31, 2020 = 200,000 shares

July 1, 2021, Issuance of 44,000 shares

Total outstanding common stock

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2 years ago

Simon Company had the following summarized operations for the month of May: Revenues earned: for cash, $32,000; and on account,

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Answer:

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Explanation:

Given that,

Revenues earned:

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