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3 years ago

What is the present value of receiving $100 investment two years from now at a 10 percent annual discount rate

Business

1 answer:

guapka [62]3 years ago

8 0

Answer: $121

Explanation:

The question simply wants us to find the present value of receiving $100 investment two years from now at a 10 percent annual discount rate.

This can be easily solved as follows:

For the first year, the $100 will be worth:

= $100 + ($100 × 10%)

= $100 + ($100 × 0.1)

= $100 + $10

= $110

The worth at the end of the second year will then be:

= $110 + ($110 × 10%)

= $110 + $11

= $121

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How do companies know when things get expired?????

PolarNik [594]

Answer:

By checking the expiration date

Explanation:

It is very dangerous to consume either by eating or using, expired products.They are dangerous to health when consumed and a threat to originality when used in producing other products.

The best way to determine expired products in organisations is to have a culture of routine check of produce and products. The check helps to save from the danger of consuming the expired products and also saves from litigation in case the expired product is mistakenly sold out.

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3 years ago

Why are there no jet streams in the equator?

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Explanation:

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3 years ago

Chiller Company has credit sales of $5.60 million for year 2013. Chiller estimates that 1.32% of the credit sales will not be co

dsp73

Answer:

$59,045.80

Explanation:

The following information was missing:

Accounts Receivable total $1,565,170

Assuming the company uses the percent of accounts receivable method, what is the amount that Chiller will enter as the Bad Debt Expense in the December 31 adjusting journal entry?

total uncollectible debt = $1,565,170 x 4% = $62,606.80

since the account balance of the allowance for doubtful accounts is $3,561 (credit), the adjusting entry should be:

December 31, 2013, bad debt expense

Dr Bad debt expense (= $62,606.80 - $3,561) 59,045.80

Cr Allowance for doubtful accounts 59,045.80

7 0

3 years ago

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the followin

natali 33 [55]

Answer:

a. What is Mary’s federal tax liability?

$20,243.75

b. What is her marginal tax rate?

25%

c. What is her average tax rate?

average tax rate for ordinary income = $18,293.75 / $90,000 = 20.33%

average tax rate on all of Mary's taxable income (including long term capital gains) = $20,243.75 / $103,000 = 19.65%

Explanation:

Since the personal exemption is $4,000, I assume that this question takes place during 2015.

total ordinary income = $82,000 (salary) + $12,000 (dividend income) + $5,000 (interest income) + $2,500 (short term capital gains) = $101,500

long term capital gains = $13,000

taxable ordinary income = $101,500 - $4,000 - $7,500 = $90,000

tax liability on ordinary income = $5,156.25 + [($90,000 - $37,450) x 25%] = $18,293.75

tax liability on long term capital gains = $13,000 x 15% = $1,950

total tax liability = $20,243.75

6 0

3 years ago

Manny and Irene will be retiring in fifteen years and would like to buy a Mexican villa. The villa costs $500,000 today, and ho

ki77a [65]

Answer:

Annual deposit= $37,714.37

Explanation:

Giving the following information:

The villa costs $500,000 today, and housing prices in Mexico are expected to increase by 6% per year. Manny and Irene want to make fifteen equal annual payments into an account, starting today, so there will be enough money to purchase the villa in fifteen years.

The account earns 10% per year.

First, we need to calculate the final value of the house with the following formula.

FV= PV*(1+i)^n

FV= 500,000*(1.06^15)=$1,198,279.1

Now, we can calculate the annual payments required:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,198,279.1*0.10)/[(1.10^15)-1]

A= $37,714.37

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4 years ago