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kotegsom [21]
3 years ago
7

Jane receives a 10-year increasing annuity-immediate paying 100 the first year and increasing by 100 each year thereafter. Mary

receives a 10-year decreasing annuity-immediate paying X the first year and decreasing by X/10 each year thereafter. At an effective annual interest rate of 5%, both annuities have the same present value. Calculate X.
a. 860
b. 864
c. 868
d. 872
e. 876
Business
1 answer:
ss7ja [257]3 years ago
5 0

Answer:

b. 864

Explanation:

Jane; Pv = P.a 10? + Q[(a.10? - 10v^10)/i}]

Pv = 100(7.7217) + 100[(7.7217 - 6.1391)/0.05]

Pv = 3937.38

Mary; Pv = P.a 10? + Q[(a.10? - 10v^10)/i}]

Pv = x(7.7217) - (x/10)[(7.7217 - 6.1391)/0.05]

Pv = 7.7217x - (x/10)(31.6521) = 4.5565x

Equating Pv for both Jane and Mary

3937.38 = 4.5565x

x = 3937.38/4.5565 = 864.124

x = 864.124 = 864

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3 years ago
Johnson Corporation unadjusted trial balance at year-end include the following accounts. Compute the uncollectible account expen
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Answer:

Explanation:

The journal entries are shown below:

A. Uncollectible Expense A/c Dr $11,520

            To Allowance for doubtful accounts A/c  $11,520

(Being the uncollectible expense is recorded)

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B.  Uncollectible Expense A/c Dr $12,960

            To Allowance for doubtful accounts A/c  $12,960

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= $12,960

C.  Uncollectible Expense A/c Dr $9,816

              To Allowance for doubtful accounts A/c  $9,816

(Being the uncollectible expense is recorded)

The computation is shown below:

= $12,000 - $2,184

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5 0
2 years ago
The manager of a small post office is concerned that the growing township is overloading the one-window service being offered. S
Rashid [163]

Answer:

1) 2 minutes

2) 7 minutes

3) Zero ( 0 )  minutes

4) yes

5) zero ( 0 ) minutes

Explanation:

1) Time required to serve

= 2 minutes

2) The operator will begin processing the fourth customer at 7 minutes

3) The fifth customer will wait in line for zero ( 0 ) minutes

4) Yes the sixth customer will get served right away

5) The average waiting time for the 6 simulated customers is Zero ( 0 )

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7 0
2 years ago
During the year, a company recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liabili
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Answer:

(1) accrue salaries expense

Debit [e.] Salaries Expense

Credit [g.] Salaries Payable  

--------------------

(2) adjust the Unearned Services Revenue account to recognize earned revenue

Debit [a.] Unearned Services Revenue  

Credit [f.] Services Revenue  

--------------------

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3 0
2 years ago
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable c
Alinara [238K]

Answer:

Yes $30 agsinst $19.50

The variable cost for the first 50 untis is $17.50

Yes $30 against $27.25

average variable cost for the first 100 units $26.25

Marginal cost for the first 50 units: 17.50 which is lower than marginal revenue

from 51 units and subsequent untis: 35 which is higher than marginal revenue

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selling price: $30

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After the 50untis our profit will decrease as the marginal revenue is lower than marginal cost thus, we stuop production at the 50 units:

50 x 30 - 100 fixed cost - 17.50 x 50 variable cost = 525 profit

4 0
3 years ago
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