Answer:
purchase power: 61,406.86
Explanation:
The stock will grow at 10%
and there is 4% inflation wich erodes the purchase power in the future.
Future value of the stocks:
Amount 134,550.00
Now, we will adjust for inflation of 4% over a period of 20 years:
Nominal: 134,550.00
time 20 years
inflation 0.04
PV 61,406.86
Purhcase power of the stock 20 years from now at expected grow rate of 10% and 4% inflation: 61,406.86
Answer: project
Hope that helps! Have a good day :)
Answer: The formula for simple interest is I=PxRxT. The calculations for each is below.
Explanation: The formula for simple interest is Interest = Principal x Rate x Time. In order solve for each of these variables you need to plug each into the formula.
40,000 x .07 = $2,800
50,000 x .07 = $3,500
60,000 x .07 = $4,200
70,000 x .07 = $4,900
80,000 x .07 = $5,600
90,000 x .07 = $6,300
40,000 x .09 = $3,600
50,000 x .09 = $4,500
60,000 x .09 = $5,400
70,000 x .09 = $6,300
80,000 x 09 = $7,200
90,000 x .09 = $8,100
Answer: The amount the company would recognize is $100 as a gain from foreign currency translation.
Explanation: On October 1, a receivable of $2,860 (2,000 pounds x $1.43) would have been recorded. However, this amount of receivable has to be revalued using the year-end rate of $1.45, based on the principles of <em>IAS 21 The Effects of Changes in Foreign Exchange Rates</em>. Year-end receivable would then be $2,900 (2,000 pounds x $1.45). A foreign exchange gain of $40 would be recognised by debiting receivable and crediting gain on foreign currency translation (which reports in income statement) with $40 ($2,900 - $2,860). This is necessary to revalue the receivable using the year-end rate. Subsequently, the spot rate moved to $1.50 at the point of collection, this simply means the company has made a $100 exchange gain (2,000 pounds x $1.50 = $3,000 - $2,900). The journal entries to be raised would be Debit Cash $3,000; Credit Receivable $2,900, Credit Exchange gain (income statement) $100.
Answer:
22.5 years will take to exhaust his funds
Explanation:
Consider the following calculations
- PV = 375,000, payment = -35,000, interest rate is 7.5%.
- FV = 0.
- Plugging these numbers into a calculator and solving for number of periods gives 22.5 years.
