True or False: A company should capitalize advertising expenses if they are expected to produce long term benefits. Group of ans
1 answer:
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Answer:
$2,385,086
Explanation:
To answer this question, we need to use the present value of an ordinary annuity formula:
Where:
- A = Value of the annuity
- i = interest rate
- n = number of compounding periods
Because the interest rate is annual, it is convenient to convert it to a monthly rate.
4.5% annual rate = 0.37% monthly rate.
The number of compounding periods will be = 12 months x 30 years
= 360 months
Now, we simply plug the amounts into the formula:
You will need to have saved $2,385,086 if you plan to retire under the aforementioned circumstances.
Answer:
imputed interest income for first year is $18.85
imputed interest income for second year is $19.89
imputed interest income for last year is $52.14
Explanation:
given data
maturity time = 20 year
yield to maturity = 5.5%
face value $1,000
solution
first we get here constant yield for year 0 , 1 , 2 , 19, 20
constant yield = ............1
constant yield for year 0 so maturity time = 20
constant yield for year 0 = = 342.72
constant yield for year 1 = = 361.57
constant yield for year 2 = = 381.46
constant yield for year 19 = = 947.86
constant yield for year 20 = = 1000
so imputed interest income for first year is = 361.57 - 342.72 = $18.85
and imputed interest income for second year is = 381.46 - 361.57 = $19.89
and imputed interest income for last year is = 1000 - 947.86 = $52.14