PV = A*[1-(1+r)^-n]/r
A = annual payment = $100,000
r = Interest rate = 8% = 0.08
n = Number of year = 20
PV = present value of the earnings
Therefore,
PV = 100,000*[1-(1+0.08)^-20]/0.08 = $981,814.74
Answer:
2. Government is necessary, because people do not always behave perfectly.
Explanation:
<em>Option 1</em> is wrong because if the government cannot control people, there is no use of making policy. It contradicts James Madison's quota.
<em>Options 3</em> and <em>4</em> are incorrect because the government is a necessary element.
Option 2 is correct, as the government is an essential element. Without government, people may become clueless and clumsy. To make peace in the nation, the government has to control its people.
Answer:
The Atlanta's cost allocated to Nashville will be $663,500.
Explanation:
Administration: $700,000 x 80% = $560,000
Legal: $138,000 x [18,000 ÷ (18,000 + 6,000)] = $103,500
Solution: $560,000 + $103,500 = $663,500.
$23,021,820.82 is the
correct answer. It is the present value of the future maturity value and the
$875,000 interest payments, discounted at 4.5%.
First calculate the
amount of each interest payment = 25000000*7%/2 = 875000<span>
<span>Calculate periodic market interest rate = 9%/2 = 4.5%</span></span>
Answer:
Dr Cash (3,000)
Cr Deferred Revenue (4,000)
Cr Service Revenue (Clinic) (7,000)
Explanation:
Preparation of the appropriate journal entry
Since we were told that kayakers pay the sum of $3,000 at $150 each, by adding to the $4,000 that was already paid in advance on July 30 this means we have to record the transaction by Debiting Cash with the amount of (3,000); Crediting Deferred Revenue with the amount of (4,000) and Crediting Service Revenue (Clinic) with the amount of (7,000)
Note that the credit side of the transaction which is Deferred Revenue of 4,000 -Service Revenue (Clinic) of 7,000 will give us (3,000)
Journal entry
Dr Cash (3,000)
Cr Deferred Revenue (4,000)
Cr Service Revenue (Clinic) (7,000)
