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jeka94
2 years ago
13

Ten years ago, Ann was gifted a bond. If the investment earned an annual interest of 3.2% compounded quarterly for the life of t

he bond and it is worth $4,805.02 today, how much was the original gifted bond worth?
Business
1 answer:
Sidana [21]2 years ago
8 0

The original worth of the bond is $1363.04.

<h3>What was the original value of the bond?</h3>

The formula that can be used to determine the original value of the bond is:

PV = FV ÷ (1 + r)^nm

Where:

  • PV = present value
  • FV = future value
  • r = interest rate
  • n = number of years
  • m = number of compounding

4,805.02 ÷ (1.032)^(4x10) = $1363.04

To learn more about present value, please check: brainly.com/question/25748668

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Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350.
aniked [119]

Answer:

A.50 months

B.12.92 months

C.$112.38

Explanation:

a). Using this formula

PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]

Where,

PV of Annuity =$350

Monthly Payment =$10

r=(0.18/12)

Let plug in the formula

$350 = $10 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]

$350 / $10 = {1 - (1.015)-n} / 0.015

35 * 0.015 = 1 - (1.015)-n

(1.015)-n = 1 - 0.525

-n[log(1.015)] = log(0.475)

-n[0.0149] = -0.7444

n = -0.7444 / -0.0149

n= 50 months

b). Using this formula

PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]

Where,

PV of Annuity =$350

Monthly Payment =$30

r=(0.18/12)

Let plug in the formula

$350 = $30 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]

$350 / $30 = {1 - (1.015)-n} / 0.015

11.67 * 0.015 = 1 - (1.015)-n

(1.015)-n = 1 - 0.175

-n[log(1.015)] = log(0.825)

-n[0.0149] = -0.1924

n = -0.1924 / -0.0149 =

n=12.92 months

c). Calculation for the Total Amount Paid under $10-a-month plan

Using this formula

Total Amount Paid under $10-a-month plan = No. of Payments * Monthly Payment

Where,

No.of Payments =50

Monthly Payment=10

Let plug in the formula

Total Amount Paid under $10-a-month plan= 50 * $10 = $500

Calculation for the Total Amount Paid under $30-a-month plan

Using this formula

Total Amount Paid under $30-a-month plan = No. of Payments * Monthly Payment

Where,

No. of Payments =12.92

Monthly Payment=$30

Let plug in the formula

Total Amount Paid under $30-a-month plan= 12.92 * $30 = $387.62

Hence,

Total Amount Paid under $10-a-month plan -Total Amount Paid under $30-a-month plan

= $500 - $387.62

= $112.38

7 0
3 years ago
G wholesalers who own the merchandise they sell but do not physically handle, stock, or deliver it are referred to as __________
Murljashka [212]
Merchants is the answer to the question.
5 0
3 years ago
Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor h
mash [69]

Answer:

variable overhead efficiency variance= $562.5 unfavorable

Explanation:

Giving the following information:

The actual production of 5,500 units

Actual direct labor hours= 11,250

Standard direct labor for 5,500 units:

Standard hours allowed 11,000 hours

First, we need to determine the variable overhead rate:

Variable overhead rate= 22,500/10,000= $2.25 per direct labor hour

Now, using the following formula we can determine the variable overhead efficiency variance:

variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

variable overhead efficiency variance= (11,000 - 11,250)*2.25

variable overhead efficiency variance= $562.5 unfavorable

3 0
3 years ago
Employers who require the use of personal mobile devices in the workplace must also reimburse their employees for cellular voice
Inessa05 [86]

False,  Employers who mandate the use of personal mobile devices at workplace are not  required to pay back their staff members' cellular voice and data costs.

More about mobile devices in the workplace:

Businesses are using mobile devices to increase productivity because the nature of the workplace is changing, altering how, when, and where many of us work.

Despite the fact that mobile solutions have long been a key factor in businesses' success, the pandemic has really brought to light the many ways they boost productivity in the workplace. This occurs at a time when it may be more important than ever for organisations and employees to operate at optimal efficiency.

Learn more about workplace here:

brainly.com/question/4312895

#SPJ4

7 0
2 years ago
everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on treasury securities w
posledela

Interest rates would increase since the tax-exempt status of municipal bonds would lose some of its appeal and there would be less of a market for them as a result of the lower income tax rates.

When the income tax rate is reduced for municipal bonds, the value of the bonds will also decline because the tax-exempt status for the bonds will also be reduced as a result of the lower income tax rate. Additionally, it lessens the demand for municipal bonds.

To know more about the municipal bond visit here :

brainly.com/question/23962246

#SPJ4

6 0
1 year ago
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