A. Expected Opportunity Loss B. Expected Monetary Value
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Q: Year 10 Yr Inflation 20 Yr Bond Yield 1956 0.025814878 0.0345 1957 0.019835599 0.0323 1958…
A: Year 10 Yr Inflation 20 Yr Bond Yield 1956 0.025814878 0.0345 1957 0.019835599 0.0323 1958…
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A: A statistical model is a mathematical model that can be used for the estimation process.
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A: initial value is $10081 see the explanation and calculation below
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- Year 10 Yr Inflation 20 Yr Bond Yield 1956 0.025814878 0.0345 1957 0.019835599 0.0323 1958 0.018893854 0.0382 1959 0.022195243 0.0447 1960 0.01787712 0.0380 1961 0.012678833 0.0415 1962 0.013016258 0.0395 1963 0.01403842 0.0417 1964 0.015728851 0.0423 1965 0.017275388 0.0450 1966 0.01777163 0.0455 1967 0.017790153 0.0556 1968 0.020756834 0.0598 1969 0.025364711 0.0687 1970 0.029381652 0.0648 1971 0.032067163 0.0597 1972 0.034253897 0.0599 1973 0.041402732 0.0726 1974 0.05241841 0.0760 1975 0.057507736 0.0805 1976 0.058964243 0.0721 1977 0.062688494 0.0803 1978 0.066992335 0.0898 1979 0.074192762 0.1012 1980 0.081095098 0.1199 1981 0.0866764 0.1334 1982 0.087135714 0.1095 1983 0.082136616 0.1197 1984 0.073938451 0.1170 1985 0.070644276 0.0956 1986 0.066962977 0.0789 1987 0.064604182 0.0920 1988 0.059994599 0.0918 1989 0.051328855 0.0816 1990 0.045045962 0.0844 1991 0.039173687 0.0730 1992 0.03820184 0.0726 1993…4. Adai LLC owns 70% of the share capital of Loyal LLC. The inventories of Loyal LLC on 31 December2018 include goods bought from Adai LLC for OMR 105,000. These goods had cost Adai LLC OMR90,000. A. Explain how these goods should be dealt with in the consolidated statement of financialposition at 31 December 2018. B. Critically discuss Unrealized profits as per IFRS10 and what will happen if IFRS 10 is notfollowed with examples.3. You would like to retire a millionaire! You plan on retiring in 40 years and using historical data you determine that a 5% interest rate compounded quarterly is a reasonable expectation. How much do you need to invest now to have $1000000 in 40 years. How much of the $1000000 that you have earned is interest?
- With reference to the accounting method of amortized analysis, in what situation the sum of amortized costs may become less than the sum of real costs?Reporting allowance for doubtful accounts P2 On December 31 of Swift Co.’s first year, $50,000 of accounts receivable was not yet collected. Swift estimated that $2,000 of its accounts receivable was uncollectible and recorded the year-end adjusting entry. 1. Compute the realizable value of accounts receivable reported on Swift’s year-end balance sheet. 2. On January 1 of Swift’s second year, it writes off a customer’s account for $300. Compute the realizable value of accounts receivable on January 1 after the write-off. page 300 "Prove that the accumulation function associated with the force of interest satisfies the principle of consistency.
- A company is considering introducing a new product, which will require buying new equipment for a fixed monthly payment of $5,000. The product can be sold for $20.00 each. Irvin incurs a variable cost of $10.00 per unit. The company intends to sell 100 units of the new product next month and they would like to realize a monthly profit of $5000. The company will realize the expected profit at the current selling price. True or FalseHere are some statistics for Thailand, Korea, and the United States from 1990 to 1996. Inflation rate: Annual rate in % per year 1991 1992 1993 1994 1995 1996 Thailand 5.70% 4.10% 3.40% 5.01% 5.79% 5.90% Korea 9.34% 7.30% 6.80% 6.27% 5.49% 7.92% US 4.23% 3.03% 3.00% 2.61% 2.81% 2.34% Year-end exchange rate per US Dollar 1990 1991 1992 1993 1994 1995 1996 Thailand 25.59 25.52 25.40 25.32 25.15 24.92 25.34 (Baht/US$) Korea 716.4 760.8 788.4 808.1 788.7 774.7 804.2 (Won/US$) (a) Calculate and track the real values (i.e., real exchange rate) of US$ in Thailand and Korea respectively over the period from the end of 1990 to the end of 1996. Index the price levels of the countries to 100 at the end of 1990.An insurer issues a 25-year endowment insurance with sum insured $100, 000 to a select life aged 30. The premiums are payable annually throughout the term of the insurance. The insurer incurs initial expenses of $2, 000 plus 50% of the first premium, and the renewal expenses of 2.5% of each subsequent premium. The death benefit is payable immediately on death. Basis: • Mortality: AM92 Select • Rate of interest: 6% a. Write down the expression for the gross future loss random variable at the inception of the contract. b. Calculate the gross premium using the equivalence premium principle.
- A new brand of cell phone is for sale in SM Lucena at P 13,499.00 in cash or in instalment terms, P2,500.00 each month for the next 6 months at 9% compounded monthly. 1. If you were the buyer, what do you prefer? C ash or installment? 2. Why did you choose cash? Installment? 3. What is the advantage of choosing c ash basis? 4. What is the advantage of choosing installment basis?3. You are an excellent investor and have averaged a 12% rate of return over the last 20 years. Over the same time period, inflation has averaged 3.2%. What is the real rate of return you have earned on your investments?Solve question (a) please
