Answer:
$906.30
Explanation:
Face value (FV) = $1000
Coupon payment (C) = 7% of $1000 = $70
Yield to maturity (r) = 8% = 0.08
t = 18
Number of compounding periods (n) = 1 (annually)
Using the relation:
C[( 1 - (1 + r/n)^-nt) / (r/n)] + FV / (1 + r/n)^nt
70[(1 - (1 + 0.08)^-1*18) / (0.08/1)] + 1000 / (1 + 0.08/1)^1*18
70[1 - (1.08)^-18) / 0.08] + 1000 / 1.08^18
70[(1 - 0.2502490)/0.08] + (1000 / 3.99601949918)
70(9.3718871) + 250.24902
= $906.281117
= $906.30
Canada, Australia, and South Africa use tax brackets.
Answer:
The future value of a 18-year annuity of $2,000 per period where payments come at the beginning of each period is $59,078.
Explanation:
We apply the formula to calculate future value of annuity to find the future value of 18-year annuity as at the beginning of year 18 ( because payment comes at the beginning of the year):
2,000/5% x (1.05^18 -1) = $56,264.77.
We further compound the future value of 18-year annuity as at the beginning of year 18 for one period to come up with the future value of this annuity as at the end of 18 year time:
56,264.77 x 1.05 = $59,078.
So, the answer is $59,078.
Answer:
1. Inventory account will be affected and assertions of accuracy and valuation will be violated.
2. Assets are overstated and assertion classification is violated.
3. Liability is understated and assertions of accuracy is violated.
4. No impact.
Explanation:
Assertions are certain claims of a business which a business must fulfill in order to make its financial statements reliable. A company has to record the expense when it is incurred in order to provide accuracy in valuation. In the given cases the assertions are violated which impact business accounts.
Answer:
a. $60.
Explanation:
While computing the relevant cost in case of special order only the variable manufacturing cost is to be considered as it will be changed in special order case.
And the other cot like - fixed manufacturing, variable & fixed selling, traceable fixed administrative cost, etc are not relevant as it remains constant
These costs are not useful for decision making. Hence, it is to be ignored