Answer:
$1066.77
Explanation:
The amount that would need to be saved today is referred to as present value.
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 and 2 = 0
Cash flow in year 3 = $600
Cash flow in year 4 = 0
Cash flow in year 5 = $700
I = 5
present value = $1066.77
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
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Answer: $2,500
Explanation:
The American opportunity tax credit (AOTC) is a measure by the IRS that is a credit for QUALIFIED education expenses paid on Eligible students.
A maximum of $2,500 in credit can be acquired per eligible student.
To qualify for the full amount of this tax credit, your Modified Adjusted Gross Income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).
The Shaws are married and file jointly with a MAGI of $148,000 which is less than the $160,000 limit which means that they are due for the entire credit amount of $2,500 as they pay education expenses for their ONE dependant child assuming Dante meets the various eligibility criteria.
The amount of the Shaws' American Opportunity credit for the year is $2,500.
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Answer:
The current share price is $74.62.
Explanation:
The constant growth model of the DDM requires is used to estimate the fair price per share of a stock based on the expected dividends that it will pay in future when these dividends are growing at a constant rate. The formula for this model is,
Price today = D1 / r - g
Where,
D1 is the dividend in year 1
r is the required rate of return
g is the growth rate in dividends
However as the company will pay dividends from year 10. Thus, the D10 will 14.
The value of the stock at year 9 will be,
Price at year 9 = 14 / (0.125 - 0.06)
Price at year 9 = $215.38
We will discount this by the required rate of return to calculate the present value.
Present price per share = [(14 / (0.125 - 0.06)) / (1+0.125)^9]
Present prie per share = $74.617
Answer:
$412.5
Explanation:
First, we have to calculate the sale price of diamond at which i will be selling in normal circumstances
Normal selling price=Cost price+100%*Cost price
=275+100%*275
=$550
Now apply the discount rate of 25% to the normal selling price to caculate the actual offer price
Actual offer price=550*75%=$412.5