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Concept Introduction:
Present value:
Present value refers to discounted value of future money. In other we can say that when we discounted future value with the help of given interest rate then we will get present value of money to be received in future time.
Requirement 1:
How much money is Otto able to borrow if interest rate is 8%, compounded semiannually?
Concept Introduction:
Present value:
Present value refers to discounted value of future money. In other we can say that when we discounted future value with the help of given interest rate then we will get present value of money to be received in future time.
Requirement 2:
How much money is Otto able to borrow if interest rate is 12%, compounded semiannually?
Concept Introduction:
Present value:
Present value refers to discounted value of future money. In other we can say that when we discounted future value with the help of given interest rate then we will get present value of money to be received in future time.
Requirement 3:
How much money is Otto able to borrow if interest rate is 16%, compounded semiannually?
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Chapter B Solutions
FUND OF ACCOUNTING PRIN W/ACC <CUSTOM>
- Do fast answer of this accounting questionsarrow_forwardSolve my proarrow_forwardH. Smith is employed at a rate of $35 (USD) PER HOUR FOR A FORTY HOUR WORK WEEK:any hour over the forty smith is paid an additional $5usd. during the month of march 2016 smith worked the following schedule: Work week hours worked benefits Value of benefits March 1-4 40 cell phone 15000.00TT$ March 7-11 45 Housing 40,000 March 14-18 42 Motor car 45,000 March 28-31 41 Cash Allowance 100,000 Tax Credits: Personal allowance 75,000, NIC 9% OF BASIC PAY, PAYE rate vv25%. using an exchange rate of $1.50tt$ for us $1, compute the net pay of mr smith formonth ending march 31,2016 in TT currency.arrow_forward
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