Shoreline sells a piece of equipment to a corporate customer for $500,000. The cost of the equipment to Shoreline is$375,000. The terms of the sale call for the customer to make equal annual payments over the next three years, with the firstpayment due 1 year from now. APR is 9%. Variable consideration is already taken into account. Use the following tables tohelp you amortize and determine revenue and interest on the contract.Under the Installment method, how much gross profit will Shoreline recognize in Year 1? (to the nearest dollar)$0$45,000O $38,131$97,774

First, we need to determine the annual payment by inputting the following information in a financial…

Answered: Under the Installment method, how much…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7% interest compounded annually? Please ideentify which table you used.
Assuming a 360-day year, when a $11,200, 90-day, 5% interest-bearing note payable matures, the total payment will be Oa. $560 Ob. $140 Oc. $11,760 Od. $11,340 0 0 0 0
Which one of the following has the highest effective annual rate?A. 6 percent compounded monthly.B. 6 percent compounded quarterly.C. 6 percent compounded semiannually
What is the future value on December 31, Year 5, of a deposit of $25,000 made on January 1, Year 2, assuming interest of 12% compounded semiannually?
A lender lends $10000 which is to be repaid in annual payments of $2100 for 6 years. Which of the following shows the timeline of the loan from the lenders perspective?
Following is a table for the present value of $1 at compound interest: Year 6% 10% 1 0.943 0.909 0.890 0.826 0.840 0.751 0.792 0.683 5 0.747 0.621 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables provided, the present value of $9,186.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is Oa. $9,186 Ob. $22,065 2 3 4 4 Oc. $27,898 Od. $33,116 12% 0.893 0.797 0.712 0.636 0.567
What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year? Use a nominal rate of 8.00%. O $10,625 O $10,952 O $10,241 O $9,133 O $9,004
Ques 15 and 16
Q6. What's the present value of a perpetutity that pays $1,524 per year if the aprropriate interest rate is 5.3 % ? Round answer to 2 decimal places?
What is the effective annual rate (EAR) (in percent) if the stated rate, or APR, is 2.95 percent and there are 207 compounding periods per year? Answer to two decimals. 4
Question 3 (at home, to practice) The following banks all offer 20-year Certificates of Deposits* (CDs), but at the following, different, conditions: Bank A: Bank B: Bank C: Bank D: Bank E: 10 percent per year compounded annually 9.8 percent per year compounded semiannually 9.6 percent per year compounded quarterly 9.5 percent per year compounded monthly 9.4 percent per year compounded daily Francesca has inherited £150,000. She decides to invest the money in the 20-year Certificate of Deposit offered by Bank E. If, instead, Francesca had invested her money in the bank with the CD offering the best rate, how much more money would she have had after 20 years? First write down the formulae you need to use to do the calculations. Then, solve numerically using a calculator or Excel.

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