Answer:
$78,443.29
Explanation:
we need to use the present value of an annuity formula:
the formula used to determine the present value factor of an annuity is:
present value annuity factor = [1 - 1/(1 + i)ⁿ ] / i
we must divide this into 2 parts:
the first part will deal with the $2,000 monthly payment
the second part deals with the $1,000 monthly payment
i = 9.75% / 12 = 0.8125%
n (first part) = 36
n (second part) = 24
the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)³⁶ ] / 0.8125% = 31.1043
the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)²⁴ ] / 0.8125% = 21.7251
loan = ($2,000 x 31.1043) + ($1,000 x 21.7251)//(1 + 0.8125%)³⁶ = $62,208.60 + $16,234.69 = $78,443.29
= [1 - 1/(1 + 0.0069942)240 ] / 0.0069942 = 116.135183
The bank would calculate the present value of the loan payments to determine how much to lend the small business owner.
The bank would be willing to lend the business owner an amount that corresponds to the present value of the loan payments. To calculate the present value, we need to discount each of the future cash flows to the present time using the bank's annual percentage rate (APR). The formula to calculate the present value of an annuity is:
Present Value = A x [(1 - (1 + r) ^ -n) / r]
Where A is the monthly payment, r is the monthly interest rate, and n is the number of months.
Using this formula, we can calculate the present value of the loan payments and determine how much the bank would be willing to lend the business owner.
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Answer:
$967.20
Explanation:
the YTM formula = {coupon + [(face value - present value)/time]} / [(face value + present value)/2]
to determine the coupon rate we fill the equation with the known factors:
0.065 = {coupon + [(1,000 - 1,050)/12]} / [(1,000 + 1,050)/2]
0.065 = (coupon - 41.67) / 1,025
66.625 = coupon - 4.167
coupon = 66.625 + 4.167 = $70.792
three years later, the YTM = 7.5%, what is the PV? Again we use the YTM formula:
0.0775 = {70.792 + [(1,000 - x)/6]} / [(1,000 + x)/2]
0.0775(500 + 0.5x) = 70.792 + 166.67 - 0.1667x
38.75 + 0.03875x = 237.462 - 0.1667x
0.20545x = 198.712
x = 198.712 / .20545
x = $967.20
Answer:
Callie's Gross Profit is $562000
Explanation:
Gross profit is the profit earned by a business after deducting the costs associated with producing or selling its goods (for manufacturing and trading businesses) or the costs associated with providing the services (for service businesses) from the net revenue.
It is the profit from the trading section of the business before deducting the operating and financing expenses of the business and before adding any other income.
The gross profit is simply calculated as follows,
Gross Profit = Net Revenue - Cost of Goods Sold
Callie's gross profit = 940000 - 378000
Callie's Gross Profit = 562000
state government officials demand that the SEC should look into the financial dealings of all these organizations
B.
state government officials recruit auditors to review the financial records
C.
state government officials themselves audit these organizations
D.
state government officials review the audit performed by CPA firms for such organizations
The correct option is D. state government officials review the audit performed by CPA firms for such organizations
The following information should be considered:
Learn more: brainly.com/question/16911495
This is op's alt account its D
b) religion.
c) race.
d) color.
e) political preference.
Answer: Political Preference
Explanation: You cannot judge anyone based on their political views.
Answer:
L. Lyons Company
Correct Journal Entry
Debit L.Lyons, Drawings $100
Credit Cash $100
To record the cash withdrawn by L. Lyons for personal use.
Explanation:
When the owner, L. Lyons, withdraws cash for personal use, it reduces the owner's equity interest in the business. Cash as an asset is also reduced by the same amount. Therefore, the double entry should be a debit to the Owner's Capital account (here represented by Drawings) and a credit to the Cash account.
L. Lyons withdrawal of $100 would be treated as an owner's draw, reflecting a decrease in the company's assets. A journal entry would debit the owner's draw account and credit the cash/bank account.
When L. Lyons withdrew $100 for personal use, this would have been treated as an owner's draw and should be reflected in the financial records of the business. A correct journal entry would involve debiting the owner's draw account and crediting the cash or bank account. Why? The money is going out of the business (hence a decrease in the company's assets), and it's going towards the owner, so it's an owner's draw. So, the journal entry would look as follows:
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2. How much total bond interest expense will be recognized over the life of these bonds?
3. Prepare an effective interest amortization table for these bonds.
Answer:
1. What is the amount of the discount on these bonds at issuance?
$18,885
2. How much total bond interest expense will be recognized over the life of these bonds?
total interest expense = ($248,000 x 7% x 3 years) + $18,885 = $70,965
3. Prepare an effective interest amortization table for these bonds.
see attached PDF
Explanation:
the journal entry to record the issuance
January 1, 2019, bonds issued at a discount
Dr Cash 229,115
Dr Discount on bonds payable 18,885
Cr Bonds payable 248,000
The discount on the bonds at issuance is $18,885. The total bond interest paid over the life of the bonds is $52,080. An effective interest amortization table can be created to track the interest expense, reduction of discount, and carrying value at each period.
In the scenario you described, the bonds have a par value of $248,000 and they were sold for $229,115. The discount on the bonds at issuance is the difference between the par value and the amount they were sold for: $248,000 - $229,115 = $18,885.
The annual contract rate is 7%. Therefore, the annual interest is $248,000 * 7% = $17,360. Since interest is paid semiannually, each interest payment will be $17,360 / 2 = $8,680. Since the bonds mature in three years, there will be 3 * 2 = 6 interest payments, so total bond interest paid over the life of the bonds is $8,680 * 6 = $52,080.
An effective interest amortization table can be created by calculating the interest expense at each period (at the market rate of 10%), the amount of the payment that reduces the discount, and the carrying value of the bonds at each period.
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