Answer:
$30,174.74
Explanation:
The computation of present value is shown below:-
Future value = Present value × (1 + Rate of interest ÷ 1200)^12 × time period
$43,011 = Present value × (1 + 7.11 ÷ (12 × 100)^(12 × 5)
$43,011 = Present value × (1 + 7.11 ÷ 1,200)^60
$43,011 = Present value × (1 + 0.005925
)^60
Present value = $43,011 ÷ (1 + 0.005925
)^60
= $43,011 ÷ (1.005925
)^60
= $43,011 ÷ 1.425397857
= $30,174.73317
or
= $30,174.74
Therefore for computing the present value we simply applied the above formula.
We also attached the spreadsheet for better understanding
In compounded monthly, the interest rate is divided by 12 months and the time period is multiplied by 12 months and the same is to be considered
Answer:
e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.
Explanation:
Based on this information,Adonis Corporation is issuing a coupon paying bond.
- The $286,827 that they receive is the market price/ market value of the bond.
- The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
- Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
- The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
- <em>Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.</em>
Answer:
A.- 3.45 min to produce two work units
B.- In a 8-hout shift at standard performance 274 work units are produced
Explanation:
The Standart tiem per piece would be:
Given your numbers it will be:
This is the time per cycle to produce 2 work units
Now, in an 8 hours shift there are 480 minutes. Dividing between the standard time of a cycle we get the standard performance
Rounding, we will be getting 137 cycles
Lastly, because each cycle produce 2 work units we are having a total of 274 Units
Answer:
Debit Insurance Expense 440
Credit Prepaid Insurace 440
Explanation:
Since on January 1, the company purchased a five year insurance policy for $2,200 that means we have to divide the insurance policy amount of $2,200 by the numbers of year which is 5 years .
Hence:
$2,200/5 years
=440
Therefore the adjusting entry at the end of the first year is:
Debit Insurance Expense 440
Credit Prepaid Insurace 440