Answer:
Ans. He must save during each of the following 10 years, at the end of each year $32,452.
Explanation:
Hi, in order to find the amount of money that he should have in ten years so he can receive an annual payment of $65,156 for 25 more years (24 payments), we need to bring to present value all 24 payments to year 10. Let me show you the formula.
Where:
A= $65,156
n= 24
r= 0.08
Therefore the present value in year 10 is:
So that is our present value in year 10, or to put it in other words, our future value (if we look at it from year 0). Now we need to find the annuity (amount to save) that with account for $686,012, plus that $100,000 that he already has saved.
Every should look like this.
And we solve this equation for "A".
Best of luck.
Answer:
Underpayment of estimated tax = $2,960
Explanation:
Please consider the following equations:
100% of $15,960 = $15,960
90% of $18,000 = $16,200
whichever is lower. i.e $15,960
Underpayment of estimated tax = $15,960 - $13,000 = $2,960
Answer: Instrumental
Explanation:
Rational choice theory, is a school of thought which is based on the assumption that individuals will choose a course of action which goes in line with what they personally prefer.
For the instrumental rationality, it has to do with looking for the most cost effective method in order to achieve a particular objective. Therefore, the behavior of corporate executives who outsource jobs to other countries where labor cost is cheaper than in the United States is defined as being instrumental.
The journal entry on May 1 was:
A debit to Prepaid Insurance for 15,600
And a credit to cash for 15,600
Prepaid Insurance is the share of an insurance premium that
has been paid in early and has not finished as of the balance sheet date.
The monthly insurance payment for two years is computed by 15,600/24
months which is $650 per month.
At December 31 the adjusting entry would be:
A debit to Insurance Expense 5,200
And a credit to Prepaid Insurance for 5,200
5,200 is computed by:
650 x 8 months (starting from May 1 to December 31) = 5,200
