The calculated present value of the annuity is $915,166.70.
Explanation and Solution:
Annuity is a collection of fixed payments made or earned either at the close or at the beginning of any term such that a significant initial payment or receipt may be turned into a set of comparatively minor payments or receipts. An annuity that lasts indefinitely is called perpetuity.
The formula for the present value of the annuity is given by:
Where;
R = annual payment = $75,000
i = interest rate = 5.25%
P = Present value of annuity
n = number of years = 20 years
P = 
P = $915,166.70
Answer:
The correct answer is 11.28%
Explanation:
Solution
Recall that:
Investment center A Investment center B
Investment center income $ 530,000 $ 640,000
Investment center average
invested assets $ 4,700,000 $ 3,100,000
Now,
We calculate for return on investment (ROI) for Investment Center A
The ROI A=Investment center income/Average invested assets which is
= (530000/4,700,000)
=11.28%
Answer:
Normal spoilage rate = 1.6978% (Approx)
Explanation:
Given:
Total unit produce = 11,900 units
Normal spoil unit = 200 units
Abnormal spoil unit = 120 units
Total normal unit produce = 11,900 - 120 = 11,780
Computation of normal spoilage rate:
Normal spoilage rate = Normal spoil unit / Total normal unit produce
Normal spoilage rate = 200 / 11,780
Normal spoilage rate = 0.0169779287
Normal spoilage rate = 1.6978% (Approx)
Answer:C. The price per stock declined from 2008 to 2009
Explanation: the graph declines at 2008 and increases at 2009
