On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1-a. Determine the price of the bonds at January 1, 2021. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021. 2-b. Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform. 3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.
Answer:
1-a. Determine the price of the bonds at January 1, 2021.
PV of face value = $50 / (1 + 6%)⁴⁰ = $4,861,109
PV of coupon payments = $2.5 x 15.046 (PVIFA, 6%, 40 periods) = $37,615,000
market price = $42,476,109
1-b. Prepare the journal entry to record their issuance by Instaform.
Dr Cash 42,476,109
Dr Discount on bonds payable 7,523,891
Cr Bonds payable 50,000,000
2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2021.
PV of face value = $50 / (1 + 4.5%)⁴⁰ = $8,596,435
PV of coupon payments = $2.5 x 18.40158 (PVIFA, 4.5%, 40 periods) = $46,003,961
market price = $54,600,396
2-b. Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform.
Dr Cash 54,600,396
Cr Bonds payable 50,000,000
Cr Premium on bonds payable 4,600,396
3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.
Dr Bonds receivable 50,000,000
Dr Discount on bonds receivable 4,600,396
Cr Cash 54,600,396
The following information relates to Bonita Co. for the year ended December 31, 2017: net income 1,298 million; unrealized holding loss of $11.3 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $51.9 million on December 31, 2016. Assuming no other changes in accumulated other comprehensive income.
Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017. (Enter answers in millions to 1 decimal place, e.g. 25.5. Enter loss using either a negative sign preceding the number e.g. -45.2 or parentheses e.g. (45.2).)
(a) Other comprehensive income(loss) for 2017 $ million
(b) Comprehensive income for 2017 $ million
(c) Accumulated other comprehensive income $ million
Answer:
a. The company incurred a loss of $11.3 million as an unrealized income from available-for-sale debt securities. It is the actual loss. Therefore, other comprehensive income is -($11.3) million.
b. Comprehensive income = Net income - Unrealized holding loss
Comprehensive income = $1,298 million - $11.3 million
Comprehensive income = $1,286.7 million
c. Accumulated comprehensive income = Existing income - Unrealized holding loss
Accumulated comprehensive income = $51.9 million - $11.3 million
Accumulated comprehensive income = $40.6 million
Janelle is into running. As soon as she gets home from work at the hospital, she changes into her running clothes, puts on her high-quality running shoes, and goes outside to run. When her schedule permits it, Janelle participates in 5K runs to raise money for children's charities. She has met many friends who are also involved in running. The running groups that Janelle is involved with are examples of _______. a. income segmentation b. benefit segmentation c. geodemographic segmentation d. lifestyle segmentation
Answer:
d. lifestyle segmentation
Explanation:
Segmentation is the way in which various criteria is used to seperate the target market of a set of products.
In the given instance Janelle is involved in a lifestyle segment that is categorised on the basis of similar lifestyle.
She likes to run. This is a type of lifestyle, so the groups that she is involved with that also like running are an example of a lifestyle segmentation
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time.
Assume that a maximum of 40,000 units of each sweatshirt can be sold.
Required:
a. What is the contribution margin per hour of machine time for the Swoop sweatshirts?
b. What is the contribution margin per hour of machine time for the Rufus sweatshirts?
c. What is the optimal mix of sweatshirts?
d. What is the total contribution margin earned for the optimal mix?
Answer:
Comfy Fit Company
a. The contribution margin per hour of machine time for the Swoop is:
= $50.
b. The contribution margin per hour of machine time for the Rufus sweatshirts is:
= $30.
c. The optimal mix of sweatshirts that maximizes profitability is 40,000 Swoop sweatshirts and 6,000 Rufus sweatshirts.
d. The total contribution margin earned for the optimal mix is:
= $2,180,000.
Explanation:
a) Data and Calculations:
Machine hours available = 7,000 hours (1,000 * 7)
Swoop Rufus
Contribution margins $5 $15
Time required per unit 6 min 30 min
Time required per unit in hours 0.10 hr 0.5 hrs
Contribution per hour $50 $30
Optimal product mix is to produce all of Swoop's 40,000 units first and then to use the remaining machine hours (3,000) to produce Rufus sweatshirts.
This will take 4,000 hours (40,000 * 0.10)
This leaves 3,000 hours for Rufus (7,000 - 4,000)
This means that only 6,000 (3,000/0.5) of Rufus can be produced
The total contribution margin for the optimal mix:
= ($50 * 40,000) + ($30 * 6,000)
= $2,000,000 + 180,000
= $2,180,000
Your firm’s biggest client is coming to town today. You have been assigned the important task of showing him the town and being his host while he is here. You have done your research on him. His biography, posted on the Internet, portrays him as a philanthropist and family man. On his first night in town, he asks you to find female entertainment for him. You ask your boss what this means. Your boss says, "It means what you think it means. Keep him happy. He’s really important to the firm . . . and to your year-end bonus." You feel conflicted about your next steps.
Required:
What best describes this situation?
Answer:
Ethical dilemma
Explanation:
This scenario causes a situation of ethical dilemma or also known as ethical paradoxes or moral dilemma. In ethical dilemma both the available choices are wrong and are conflicting with each other the decision between right and wrong is ethics, but when such a situation arises the decision is to be taken by the person facing this ethical dilemma and his/her actions solely depends on the moral choices of the person and his/her views about ethics.
DeConinck Soup Co. found that its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for those in the West and Southwest. Today, DeConinck's plants in Texas and California produce a spicier nacho cheese sauce than what is produced in the other plants. DeConinck's is using __________ segmentation.
Answer:
D). Geographic segmentation.
Explanation:
Geographic segmentation is defined as the marketing strategy that primarily aims to target the distinct choice preferences of the customers across a specific region or area. DeConinck Co. is employing this strategy to understand the consumer needs and cater to the different types of demands of their customers residing across the region by producing and marketing products accordingly(spicier nachos for the Customers of Western and Southwestern Americans and less spicy nachos for the Eastern region). Thus, option D is the correct answer.
There are two closing entries. The first one is to close ____ and ____ to ______; second, close ____ to ____. a. expenses, assets, retained earnings, capital stock, dividends b. revenues, expenses, retained earnings; dividends, retained earnings c. dividends, retained earnings, expenses; revenues, retained earnings d. retained earnings, dividends, revenue; assets, liabilities
Answer: B. revenues, expenses, retained earnings; dividends, retained earnings
Explanation:
Closing entries simply refers to the journal entries that are made by an economic entity at the end of a particular accounting period which is then moved from the temporary accounts with regards to the income statement to the permanent accounts which are on the balance sheet.
There are two closing entries which includes closing revenues, and expenses, to retained earnings and secondly, close the dividends, to the retained earnings .
A restaurant chain hires two new restaurant managers. One manager is a woman, and one is a man. Both candidates are equally qualified for their positions. The restaurant chain owner wanted to save money and so he offered the job to the woman at a salary $10,000 lower than what he offered the man. This is a violation of The Equal Pay Act of 1963. Which entity, of notified, would enforce the Equal Pay Act of 1963 on behalf of these employees
Answer:
Equal Employment Opportunity Commission
Explanation:
The entity that would be involved in this case is the the EEOC. That is the equal employment opportunity commission. The violation that has occurred here is that both the man and the woman are equally qualified for this job but the owner wants to pay the woman a smaller salary compared to what he wants to pay the man. The EEOC handles such matters of discrimination to employees and workers based on gender, race, religion etc.
A company purchased a new delivery van at a cost of $58,000 on January 1. The delivery van is estimated to have a useful life of 4 years and a salvage value of $4,600. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31
Answer:
Annual depreciation= $13,350
Explanation:
Giving the following information:
Purchase price= $58,000
Useful life= 4 years
Salvage value= $4,600
To calculate the annual depreciation using the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (58,000 - 4,600) / 4
Annual depreciation= $13,350
Marketers for a chain of office supply stores notice that sales of notebooks,
pens, and other supplies used by students jump every August as families
prepare for school. How should this observation affect the schedule of ads
for these products?
A. They should expose audiences to three ads for these products in
August
B. They should advertise these products more heavily in August.
C. They should not let the temporary spike in sales affect their
planning.
D. They should not bother advertising these products in August.
Marketers for a chain of office supply stores notice that sales of notebooks, pens, and other supplies used by They should advertise these products more heavily in August Option(b) is correct.
What does Advertisement means?The meaning of Advertising is an industry used to call the consideration of general society to something, regularly an item or administration.
The meaning of notice is the method for correspondence wherein an item, brand or administration is elevated to a viewership to draw in interest, commitment, and deals.
Commercials (frequently abbreviated to promotions or adverts) come in many structures, from duplicate to intuitive video, and have developed to turn into a significant component of the application commercial center.
Commercials are a reliable strategy for contacting a group of people. By making a connecting promotion, and spending to the point of arriving at your objective clients, ads can quickly affect business.
Therefore Option(b) is correct.
Learn more about Advertisement here:
brainly.com/question/3463451
#SPJ5
Answer:
Explanation:
just took the test!
Select the correct answer.
A farmer uses one pound of fertilizer to grow crops on his land. He decides to increase the amount of fertilizer added to the soll to three pounds
to obtain a greater yield. The size of the garden and the amounts of seeds, water, and sunlight remain the same. The farmer keeps increasing
the amount of fertilizer (to four, five, and six pounds, etc.), and continues to gain higher yields. However, since the other factors of production
remain constant, the increase in crop yleld is lower than the increase in a single factor of production (fertilizer). What is the term for this
phenomenon?
OA
economic order quantity (EOQ)
OB.
law of diminishing returns
Ос. .
economy of scale
OD
labor productivity
O E production control
Answer:A
Explanation: bc i am a nerd xd
how does unsafe food harm us
Answer:
Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. Foodborne diseases impede socioeconomic development by straining health care systems, and harming national economies, tourism and trade.
Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $2,500 winnings in the bank. The reserve requirement is 5% . What is the maximum possible increase in the money supply as a result of your bank deposit?
Answer: $50,000
Explanation:
Reserve Requirement = 5% = 0.05
Change in reserves = $2500
The change in deposits is denoted as
= (1/rr) × change in reserves
where,
rr = reserve requirements
Change in deposits will now be:
= (1/rr) × change in reserves
= 1/0.05 × 2500
= 20 × 2500
= $50,000
Therefore, the maximum possible increase in the money supply as a result of your bank deposit will be $50,000.
If a monopolist could perfectly price-discriminate: (LO1, LO4) a. The marginal revenue curve and the demand curve would coincide. b. The marginal revenue curve and the marginal cost curve would coincide. c. Every consumer would pay a different price. d. Marginal revenue would become negative at some output level. e. The resulting pattern of exchange would still be socially inefficient.
Answer:
a. The marginal revenue curve and the demand curve would coincide.
Explanation:
Monopolistic competition can be defined as the market structure which comprises of elements of competitive markets (having many competitors) and monopoly. Under monopolistic competition, organizations
If a monopolist could perfectly price-discriminate (LO1, LO4), the marginal revenue curve and the demand curve would coincide.
a crawling peg is a system where the exchange rate is constantly devalued true or false
Answer:
False
Explanation:
A crawling peg is a system of exchange rate adjustments in which a currency with a fixed exchange rate is allowed to fluctuate within a band of rates.
Quick answer needed!
Criminal Law means..
A. Power of a court to decide a case
B. Group of laws defining and setting punishments for offenses against society
C. Law dictated from above
Parker, Inc. has a cash balance of $20,000 on April 1. The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
April May June
Cash collections 25000 24000 24000
Cash payments:
Purchases of direct materials 4000 5300 6200
Operating expenses 5300 6000 5300
There are no budgeted capital expenditures during the quarter. Based on the above data, calculate the projected cash balance at the end of April.
a. $41,000
b. $35,000
c. $45,000
d. $25,000
Answer:
$35,700
Explanation:
Projected cash balance at the end of April = Cash Balance at the beginning of the month + Total cash collection in the month - Total cash payments during the month
Projected cash balance at the end of April = $20,000 + $25,000 - ($4,000 + $5,300)
Projected cash balance at the end of April = $35,700.
The Green Grape Company's Office Supplies account had a beginning balance of $12,000. During the month, purchases of office supplies totaling $8,000 were added to (increased) the Office Supplies account. If $5,000 worth of office supplies is still on hand at month-end, what is the proper adjustment?
Answer:
Dr Office supplies expense $15,000
Cr Office supplies $15,000
Explanation:
Given the above information, we can compute the proper adjusting entry as;
= ( Transfer $12,000 + $8,000 - $5,000)
= $15,000 from office supplies expense
Therefore, the proper adjusting entry is;
Dr Office supplies expense $15,000
Cr Office supply $15,000
Brief Exercise 17-09 Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $148,900 (including cash spent for capital assets of $203,600), and net cash provided by financing activities of $79,700. Dividends of $128,000 were paid. Calculate free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow $
Answer:
Hiiiii
Explanation:
Hi
During the current month, a company that uses job order costing purchases $52,000 in raw materials for cash. It then uses $22,000 of raw materials indirectly as factory supplies and uses $20,100 of raw materials as direct materials. Prepare journal entries to record these three transactions
Answer:
Account Title Debit Credit
Raw materials inventory $52,000
Cash $52,000
Account Title Debit Credit
Factory Supplies $22,000
Raw materials $22,000
Account Title Debit Credit
Work in Process inventory $20,100
Raw materials $20,100
At the end of the first year of operations, 6,600 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $41.60 Direct labor 18.20 Fixed factory overhead 6.00 Variable factory overhead 5.30 Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Absorption costing:
Unitary cost= 41.6 + 18.2 + 5.3 + 6= $71.1
Ending inventory= 71.1*6,600= $469,260
Variable costing:
Unitary cost= 41.6 + 18.2 + 5.3= $65.1
Ending inventory= 65.1*6,600= $429,660
The following selected data pertain to Flagship Corporation: Cash operating expenses July 1-31 Depreciation Merchandise purchases in July Estimated payments in July for June purchases Estimated payments in July for purchases prior to June Estimated payments in July for purchases in July s 180,000 60,000 560,000 220,000 50,000 40 % July's cash disbursements are expected to be:________. A) $464,000 B) $734,000 C) S404,000. D) $674,000. E) None of the answers is correct.
Answer:
D) $674,000
Explanation:
Calculation to determine what July's cash disbursements are expected to be:
July's cash disbursements =$180,000 + ($560,000 x 40%) + $220,000 + $50,000
July's cash disbursements = $674,000
Therefore July's cash disbursements are expected to be:$674,000
The trial balance for Pioneer Advertising Inc. is shown below.
PIONEER ADVERTISING INC.
Trial Balance
October 31, 2017
Debit Credit
Cash $14,000
Supplies 2,300
Prepaid Insurance 700
Equipment 4,500
Notes Payable $4,600
Accounts Payable 2,100
Unearned Service Revenue 1,200
Common Stock 7,200
Retained Earnings –0–
Dividends 500
Service Revenue 11,600
Salaries and
Wages Expense 3,900
Rent Expense 800
$26,700 $26,700
Assume the following adjustment data.
1. Supplies on hand at October 31 total $700.
2. Expired insurance for the month is $300.
3. Depreciation for the month is $80.
4. Services related to unearned service revenue in October worth $600 were performed.
5. Services performed but not recorded at October 31 are $300.
6. Interest accrued at October 31 is $90.
7. Accrued salaries at October 31 are $1,200.
Prepare the adjusting entries for the items above assuming financial statements are computed each month. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No. Date Account Titles and Explanation Debit Credit
1. Oct. 31
2. Oct. 31
3. Oct. 3
4. Oct. 31
5. Oct. 31
6. Oct. 31
7. Oct. 31
Answer:
Adjusting Entries
October 31, 2017
Supplies expense Dr $1600 ($2300-$700)
Supplies Cr $1600
October 31, 2017
Insurance expense Dr $300
Prepaid insurance Cr $300
October 31, 2017
Depreciation expense Dr $80
Accumulated depreciation Cr $80
October 31, 2017
Unearned Service Revenue Dr $600
Service Revenue Cr $600
October 31, 2017
Accounts Receivable Dr $300
Service Revenue Cr $300
October 31, 2017
Interest Expense Dr $90
Interest payable Cr $90
October 31, 2017
Salaries and Wages Expense Dr $1200
Salaries and Wages Payable Cr $1200
1. Why is running a Website typically lesa
expensive than running a storefront business?
Answer:
storefront businesses mean electricity bills, water bills, employee payments, while a website you usually pay one fee and get paid.
PLEASE HELP ILL LITERALLY DO ANYTHING!!!!
A clothing company introduces a line of fuzzy slippers printed with characters
from popular computer games. The marketers decide that customers are
most likely to buy if they discover the item in stores when shopping for gifts.
Which type of promotion will best contribute to meeting sales goals?
A. Push strategy
B. Public relations
C. Social media
D. Pull strategy
Answer: A. Push strategy
Explanation: A push strategy is where a company wants to ‘push’ a product on the consumers. In context, the potential buyers have yet to know the product exists so it is reasonable to push it on to the buyers. The other 3 options do not make sense as well.
Answer:
push strategy
Explanation:
Reverse logistics is required because?
this is my Halloween costume
Answer:
Crankyyyy um. lolipop
Explanation:
u Look
Where there is asymmetric information between buyers and sellers, Multiple Choice product shortages will occur at the equilibrium price. product surpluses will occur at the equilibrium price. markets can produce inefficient outcomes. markets will fail due to the over-allocation of resources.
Answer:
markets can produce inefficient outcomes.
Explanation:
Asymmetric information is when one party to a transaction has more information than the other party. It could be the buyer or seller that has more information
For example, if a person wants to purchase health insurance, he might not disclose the full information about his health status to the insurer. This might lead to underestimation of costs.
Also, a seller might not reveal to the buyer than the item about to be purchased is faulty.
Asymmetric information leads to inefficient outcome inn the market
Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1 million in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year’s operations of the two firms he is considering and give him some business advice.Company Name
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (8,100 units × $31.00) $ 251,100 $ 251,100
Variable cost (8,100 units × a) (145,800 ) (72,900 )
Contribution margin $ 105,300 $ 178,200
Fixed cost (25,000 ) (97,900 )
Net income $ 80,300 $ 80,300
Required:
1. Use the contribution margin approach to compute the operating leverage for each firm.
2. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage. (Note: Since the number of units increases, both revenue and variable cost will increase.)
3. If the economy contracts in coming years, Larson and Benson will both suffer a 11 percent decrease in sales volume, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage. (Note: Since the number of units decreases, both total revenue and total variable cost will decrease.)
Answer:
Arnold Vimka
1. Operating leverage, using the contribution margin approach:
Larson Benson
Operating leverage 1.31 2.22
2. Change in net income for each firm in dollar amount and in percentage, following 11% increase in the units sold:
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (8,991 units × $31.00) $278,721 $ 251,100
Variable cost (8,991 units × a) (161,838 ) (80,919 )
Contribution margin $ 116,883 $ 170,181
Fixed cost (25,000 ) (97,900 )
Net income $ 91,883 $ 72,281
Net income $ 80,300 $ 80,300
Change in net income ($) $11,583 ($8,019)
Change in net income (%) + 14.42% -9.99%
3. Change in net income for each firm in dollar amount and in percentage, following 11% decrease in the units sold:
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (7,209 units × $31.00) $ 223,479 $ 223,479
Variable cost (7,209 units × a) (129,762 ) (64,881 )
Contribution margin $ 93,717 $ 158,598
Fixed cost (25,000 ) (97,900 )
Net income $ 68,717 $ 60,698
Net income $ 80,300 $ 80,300
Change in net income($) -$11,583 ($19,602)
Change in net income (%) -14.42% -24.4%
Explanation:
a) Data and Calculations:
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (8,100 units × $31.00) $ 251,100 $ 251,100
Variable cost (8,100 units × a) (145,800 ) (72,900 )
Contribution margin $ 105,300 $ 178,200
Fixed cost (25,000 ) (97,900 )
Net income $ 80,300 $ 80,300
Contribution margin approach to computing the operating leverage:
= Contribution margin/net operating income
Larson Benson
Contribution margin $ 105,300 $ 178,200
Net operating income $ 80,300 $ 80,300
Operating leverage 1.31 2.22
Use the compounding or discounting formula to answer the questions. Round answers to the nearest dollar. a. Your small business has a cash reserve of $200,000, earning 2% annual interest. How much will your cash reserve be worth in 3 years? $ b. You want $1 million in your retirement account in 50 years. If your account grows at an annual rate of 4%, how much do you have to deposit today to reach $1 million in 50 years?
Answer:
a.
Future value - Cash Reserve = $212241.6
b.
Present value of deposit = $140712.615333 rounded off to $140712.62
Explanation:
a.
To calculate the value of cash reserve in 3 years, we will calculate the future value of the cash flow using the following formula,
Future value = Present value * (1 + r)^t
Where,
r is the rate of interest or returnt is the number of periodsFuture value - Cash Reserve = 200000 * (1+2%)^3
Future value - Cash Reserve = $212241.6
b.
To calculate the amount of deposit today, we need to calculate the present value of $1 million which are after 50 years from today. The formula to calculate the present value is as follows,
Present Value = Future value / (1 + r)^t
Where,
r is the interest rate or rate of return or discount ratet is the number of periodsPresent value = 1000000 / (1+4%)^50
Present value = $140712.615333 rounded off to $140712.62