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3 years ago

Lawrence has worked in his career field for 20 years. one benefit of his experience over younger employees lies in

1 answer:

3 0

<span>Experience teaches the things which a book can not teach. Thus, having extra work experience gives an edge to the person with higher experience with person with lesser experience. Lawrence's experience is more than his younger employees hence he knows various aspects of his work profile than the youngsters.</span>

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How much TOTAL (principle and interest) will be paid over the life of the following loan: $185,000 loan; 7% annual interest (mon

Yuri [45]

Answer:

$443,091.5

Explanation:

Given that,

Amount of loan, present value = $185,000

Annual rate of interest, r = 7% ÷ 12

= 0.00583

Time period = 30 years

Therefore,

Monthly payments:

$=\frac{r\times PV}{[1 - (1+r)^{-n}]}$

$=\frac{0.00583\times 185,000}{[1 - (1+0.00583)^{-30\times12}]}$

$=\frac{1,078.55}{[1 - (1.00583)^{-360}]}$

= 1230.81

Total (principle and interest) will be paid over the life:

= Monthly payments × 360

= $1,230.81 × 360

= $443,091.5

5 0

3 years ago

Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be

Nataly [62]

Answer:

YTM = 8.93%

YTC = 8.47%

Explanation:

$P = \frac{C}{2} \times\frac{1-(1+YTC/2)^{-2t} }{YTC/2} + \frac{CP}{(1+YTC/2)^{2t}}$

The first part is the present value of the coupon payment until the bond is called.

The second is the present value of the called amount

P = market price value = 1,200

C = annual coupon payment = 1,000 x 12% 120

C/2 = 60

CP = called value = 1,060

t = time = 6 years

$P = 60 \times\frac{1-(1+YTC/2)^{-2\times 6} }{YTC/2} + \frac{1,060}{(1+YTC/2)^{2\times 6}}$

Using Financial calculator we get the YTC

8.467835879%

$P = 60 \times\frac{1-(1+YTM/2)^{-2\times 10} }{YTM/2} + \frac{1,000}{(1+YTM/2)^{2\times 10}}$

The first part is the present value of the coupon payment until manurity

The second is the present value of the redeem value at maturity

P = market price value = 1,200

C = coupon payment = 1,000 x 12%/2 = 60

C/2 = 60

F = face value = 1,060

t = time = 10 years

Using Financial calculator we get the YTM

8.9337714%

4 0

3 years ago

A company issued a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interes

Kitty [74]

Answer: $828

Explanation:

Given the following :

Semi-annual payment = $40

Period = 20 years

Number of payments = (20 * 2)(semiannual) = 40 payments

Par value = $1000

Interest rate = 5%

Using the PV table:

PV at $1 (40, 5%) = 0.1420

PVA at $1 (40, 5%) = 17.159

[Par value * PV at $1 (40, 5%)] + [$40 * PVA at $1 (40, 5%)]

= ($1000 * 0.1420) + ($40 * 17.159)

= $142 + $686.36

=$828.36

= $826

4 0

3 years ago

Which employer pension plan has an individual account for each employee?

Cerrena [4.2K]

Defined contribution plan

5 0

3 years ago

Read 2 more answers

Which of the following statements is most accurate? Multiple Choice In process costing, estimating the degree of completion of u

kirza4 [7]

Answer:

C. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.

Explanation:

THIS IS THE COMPLETE QUESTION BELOW

Which of the following statements is most accurate?

A. In process costing, estimating the degree of completion of units is usually more accurate for conversion costs than for direct materials.

B. The FIFO method includes the cost of the beginning Work in Process inventory account in calculating cost per equivalent units.

C. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.

D. The FIFO method of calculating equivalent units of production merges the work and the costs of the beginning inventory with the work and the costs done during the current period.

E. It is not possible for there to be a significant difference between the cost of completed units between the weighted average and the FIFO methods.

EXPLANATION

FIFO method which is known as

(First In, First Out) can be regarded as an asset-management as well as valuation method , this method follows a process whereby any assets that is first produced or acquired are the asset that are sold first or first disposed. For the purposes of tax, FIFO gives assumption that assets that has oldest costs are usually entered into cost of goods sold I.e (COGS) income statements. Fifo can be calculated by finding the cost of oldest inventory, then multiply it by the amount of inventory sold.

It should be noted that The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory

8 0

3 years ago