? https://v2cengagenow con irtakeAssignment takeAssignmentMandoin oker assignmen

Question

? https://v2cengagenow con irtakeAssignment takeAssignmentMandoin oker assignments tak Calculator Determine the present value of $54,000 to be received in two years, at i 2% compounded annak trounded to n following table, if needed. Present Value of $1 at Compound Interest pends 5% 0.95238 0.94340 0.93458 0.90909 o.89286 0.90703 0.89000 0.87344 0.82645 0.79719 0.86384 0.83962 081630 0.75132 0.71178 0.82270 0.79209 0.76290 0.68301 063552 0.783530.74726 0.71299 0.62092 0.56743 0.74622 0.70496 0.66634 0.56447 0.50663 0.71068 0.66506 062275 0.51316 0.45235 067684 062741 0.5820 0.46651 0.40388 0.644610.59190 0.54393 0.42410 0.36061 .61391 0.55840 0.50835 0.38554 0.32197 10% 12% Select the correct answer $48,060 $47,166 $44,628 43,048

Explanation / Answer

Future Value(FV)=$54,000

Number of years N=2

Interest Rate=12%

Present Value of $1 (2years, 12%)=0.79719

Present Value of $54,000=54000*0.79719= $ 43,048.26

Answer:

$ 43,048.26

Bond Issue Price=$102

Principle=$876,000

Premium=0.02*876000=$17,520

Balance on Bond premium=$9,636

Gain on redemption=17520-9636= $   7,884

Answer:

$7,884 gain

Times interest earnedRatio=Earning before interest and taxes/Interest expenses

Interest expense=0.06*1,200,000=72,000

Earning Before interest and taxes=320000+72000=392000

Time Interest Earned Ratio=392000/72000=5.4444

Answer:

5.44

Bond Issue Price=$105

Premium on issue price=((105-100)/100)-0.05

Total Bond Issue=$1,500,000

Premium received =0.05*1500000= $ 75,000

Amount of cash received=1500000+75000=$1,575,000

Answer:

$1,575,000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.