A company wants to have $50,000 at the beginning of each 6-month period for the next 4 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.32%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. O ordinary annuity O annuity due (b) Solve the problem. (Round your answer to the nearest cent.) 2$
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
This is question 6 from section 6.4 of my homework, please help me! I attached the formulas we've been using down below, thanks for your help!
![This gives a total of four different types of annuities
and four different formulas to choose from.
Formulas:
• Future Value of an Ordinary Annuity
[(1 + і)" — 1
R
FV
- See
example
i
• Future Value of an Annuity Due
(1+ i)" – 1
(1+ i)
-
FV = R
i
• Present Value of an Ordinary Annuity
1.
– (1+i)¬"]
R
-
PV
• Present Value of an Annuity Due
[1 – (1+ i)~"]
PV = R
(1+i)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea74ad9f-1200-44ca-9ede-5ca983ad5349%2F654704ab-b08a-4e44-8302-cb149539892f%2Fenk009o_processed.jpeg&w=3840&q=75)
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