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qaws [65]
2 years ago
14

what is the equivalent present amount of an eight year series of decreasing amaounts if the interest rate is 10% compounded annu

ally, the first year amount is $20,000, and the rate of decrease is $800 per year
Business
1 answer:
zepelin [54]2 years ago
6 0

Answer: $93,876

Explanation:

The equivalent present amount of an 8year series of decreasing amounts when the interest rate is 10% compounded annually, the first year amount is $20,000, and the rate of decrease is $800 per year will be calculated thus:

PV = C / (1+r) ^ t

= 20,000/1.1 + 19,200/1.1² + 18,400/1.1³ + 17,600/1.1⁴ +16,800/1.1^5 + 16,000/1.1^6 + 15,200/1.1^7 + 14,400/1.1^8

= $93,876

Therefore, the equivalent present value is $93,876.

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California Adventures issues 5,000 shares of 8%, $100 par value preferred stock at the beginning of 2020. All remaining shares a
never [62]

Answer:

See below.

Explanation:

Since the preferred stock is not cumulative only the current years' dividend is payable on these stocks.

Preferred stock dividend = (5000 * 100) * 0.08 = $40,000

Of the declared dividend of $100,000,

Preferred Dividend = $40,000

Ordinary share dividend = $60,000

If the shares were cumulative, the prior year dividends would also be payable form the declared dividends bringing the total preferred dividend to $80,000.

Hope that helps.

3 0
3 years ago
Mini Mart suspects that Junior is stealing candy. The next time Junior comes into the store, the manager at Mini Mart detains Ju
max2010maxim [7]

Answer:

The mini mart manager actually doing the right thing.

But The police still come and ask for the proof from the managers for the basis of the accusation

Explanation:

Most states in united states allowed Business establishment to legally detained the people who they suspect to be stealing. This action is protected under the probable cause.

But , there are several requirements that the business onwer needs to follow:

- They shall not intentionally harm the suspects

- They shall not publish the information about the case to the public unless the court determine that the suspect is guilty.

- The basis of the detain must be reasonable.

In the case above, the police will most likely come and ask the manager to provide proof. (usually by looking at the camera footage in the store or witnesses) . If the police believe the proof to be sufficient,  the suspect will be processed accordingly.

3 0
3 years ago
A graduate student wants to examine the effect of print media versus televised media on individuals' position on several social
Phoenix [80]
<span>The student's IRB should reject the project because the student is treating the prisoners as subjects and conveniences. The student is only concerned about her research and is not really worrying about the prisoners, which could be viewed as inhumane. Even if the project were approved, the student would be put into a dangerous environment which would not be wise.</span>
6 0
3 years ago
Tonya had the following items for last year: Salary $40,000 Short-term capital gain 12,000 Nonbusiness bad debt (23,000) Long-te
bekas [8.4K]

Answer:

D) $50,000

Explanation:

Tonya's adjusted gross income = salary + long term capital gains = $45,000 + $5,000 = $50,000

Non-business bad debt is unrelated to the person's business, and must be totally worthless in order to be deducted. In this case, Tonya deducted the non-business bad debt last year, so it doesn't affect this year's AGI.

6 0
3 years ago
An externality is internalized if a. the person(s) or group that generated the externality incorporate into their own private co
Veseljchak [2.6K]

An externality is internalized (a) if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.

Explanation:

<u>Internalizing the externality means transferring the burden or the cost of a negative externality (like pollution or traffic congestion) to inside(i.e external to internal).</u>

<u></u>

  • <u>Internalization of externality can be done through taxes, property rights, tolls, and government subsidies.</u>
  • <u>The only way of correcting an externalities is to "internalize" the third party cost involved but this market -driven approach is not feasible </u><u>if the true monetary values cannot be determined.</u>

An externality is internalized if the person(s) or group that generated the externality incorporate into their own private cost-benefit calculations the external benefits (in the case of a positive externality) or the external costs (in the case of a negative externality) that third parties bear.

4 0
3 years ago
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