Answer:
PV = $4,863.24
Explanation:
Computation of the given data are as follows:
Face value = $5,000
YTM = 3.6%
YTM (Semiannual) (Rate) = 3.6% ÷ 2 = 1.8%
Coupon rate = 3.4%
Coupon rate semiannual = 3.4% ÷ 2 = 1.7%
Coupon payment ( Pmt) = 1.7% × $5,000 = $85
Time period (semiannual) (Nper) = 19 × 2 = 38
By putting the value in the financial calculator, we will get the present value.
Attachment is attached below.
PV = $4,863.24
Answer:
Truth in Lending Act (TILA)
Explanation:
Mortgage brokering can be defined as a process which typically involves a mortgage broker acting as an intermediary between a financial institution (mortgage bank) offering loans and an individual that seeks to collect a loan.
This ultimately implies that, a mortgage broker acts as an intermediary (middleman) by connecting a creditor (lender) to those seeking to get a loan (borrower).
The Truth in Lending Act (TILA) also known as Consumer Credit Protection Act (CCPA) is a federal law of the United States of America that was enacted by the 89th US Congress and signed into law by President Lyndon B. Johnson on the 29th of May, 1968.
The main purpose of this federal law (Act) is to protect the consumer while using credit by mandating businesses to provide a full disclosure of the terms and conditions with respect to the credit.
According to the Truth in Lending Act (TILA), businesses are required to explain all collection fees, finance charges, late charges and interest charges up front before the time of service or application process commence.
In this scenario, a mortgage broker advertised a 30-year fixed-rate loan with an interest rate of 2.00%.
However, when the borrower arrived at the office of the mortgage broker and begins an application, the broker then went ahead to explain that the 2.00% interest rate is no longer available because his office was only able to do a limited number of them.
Thus, this broker is in violation of Truth in Lending Act (TILA).
<span>Decrease by $57,400 per month.
Looks look at the cash flow for continuing to produce product a and discontinuing product a.
Continuing to produce
Income = 15900 * $29 = $461,100
Variable Expenses = 15900 * 23 = $365,700
Fixed overhead = $109,000
Total cash flow = $461,100 - $365,700 - $109,000 = -$13,600
So the Lusk company is losing $13,600 per month while producing product a. Let's see what happens if they stop producing it.
Income = $0
Variable Expenses = $0
Fixed overhead = $71,000
Total cash flow = $0 - $71,000 = -$71,000
So if they stop producing it, their fixed overhead decreases, but is still at $71,000 per month, for a total loss per month of $71,000.
The conclusion is to either lose $13,600 per month, or $71,000 per month. So if they stop production of product a, their loss per month will increase by $57,400.</span>
Answer:
transferred-out 135,000
Explanation:
We solve using the following identity:
beginning WIP + cost added during the period:
total cost to be accounted for.
Then this value can be either ransferred-out r remain at the ending WIP
so we construct as follows:
beginning 0
added 180,000
Total cost 180,000
ending <u> (45,000) </u>
transferred-out 135,000
Answer:
$10,620
Explanation:
Depreciation for Year 1 = 0.202 × $50,000
= $10,100
Depreciation for Year 2 = 0.323 × $50,000
= $16,150
Depreciation for Year 3 = 0.194 × $50,000
= $9,700
Depreciation for Year 4 = 0.125 × $50,000
= $6,250
Accumulated depreciation = $10,100 + $16,150 + $9,700 + $6,250
= $42,200
Book value of machine as on date of sale:
= Purchase price - Accumulated depreciation
= $50,000 - $42,200
= $7,800
Selling price = $12,500
Gain on sale of machine = $12,500 - $7,800
= $4,700
Tax rate = 40%
Tax on capital gain = $4,700 × 0.40
= $1,880
Net proceeds on sale of machine:
= Selling price – Tax paid on capital gain
= $12,500 - $1,880
= $10,620
