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2 years ago

How much money should timothy and tiffany deposit annually for 20 years in order to provide?

1 answer:

4 0

Below is to complete the question;

How much money should Timothy and Tiffany deposit annually for 20 years in order to provide an income of $30,000 per year for the next 10 years? Assume the interest rate is a constant 4%.

Use the annual rate formula.

You are given Future, F=$30,000
You are given interest, i=4% or 0.04
You are given time, n=10 years for future equation and n=20 years for annual equation.

Plug those numbers in the formulas your teacher gave you.

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(6) Erik receives an eight-year annuity-immediate with monthly payments. The first payment is $300 and payments increase by $6 e

Tamiku [17]

Answer:

$70,264.03

Explanation:

You need to calculate the value of 8 × 12 = 96 different cash flows.

There is not a formula to calculate that, because the $6 dollar increase does not represent growing with a constant rate.

The monthly payments are:

Month payment ($)

0 (today) 300

1 306

2 312

3 318

n 306 + 6 (n-1)

96 (last) 876

Then you must create a spreadsheet with these features:

Five columns
First column is the month, and starts with month 0 (today)
Second column is the initial balance, the first balance is 0
Third column is the interest: it is calculated as the monthly interest by the initial balance. The monthly interest is 6%/12 = 0.06/12 = 0.005
Fourth column is the amount deposited: for month zero it is $300, and every month you add $6.
Fith column is the final balance: it is the sum of the initial balance (second column) + interest (third column) + deposit (fourth colum)
96 rows: 8 years × 12months/year = 96 months.
The initial balance of each row is equal to the final balance of the previous row.

Here a sample of the first three rows:

Month Initial balance Interest Deposit Final balance

0 0 0 300 300

1 300 300×0.005 = 1.5 306 607.5

2 607.5 607.5×0.005 312 922.54

When you do it up to the row 96, the final balance is the balance in the acccount at the end of the eight years.

The last row of your spreadsheet will show:

96 69,042.81 345.21 876 70,264.03

Thus, the balance at the end of eight years will be $70,264.03

7 0

2 years ago

Crane Company can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muff

Makovka662 [10]

The question is reproduced in the table below for clarity

Oven Contribution

Hours Required Margin Per Unit

Muffins 0.2 $4

Coffee Cakes 0.3 $5

Answer:

Total contribution margin = $ 60,000.00

Explanation:

When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.

Therefore Crane Company should alocate the oven hours to maximise the contribution per unit of oven hour. This is done as follows:

Step 1

Calculate he contribution per oven hour and rank the product

cont/hr ranking

Muffin $4/0.2 hour = 20 1st

Coffee cakes $5/0.3 hour= 16.67 2nd

Because Muffin generates the highest contribution per hour of Oven, Crane should allocate all the resource to it

Step 2

Calculate the Total contribution from the production of Muffin

Total contribution margin = 20 per her × 3000

= $ 60,000.00

8 0

2 years ago

Read 2 more answers

A recall has been issued for specific brand of orange juice the store manager his match the information from the recall notice t

brilliants [131]

The first step is to investigate why the product recall was required. Then the manager should ask for details of the incident, follow up and report. Following these first steps will be essential in analyzing what was the problem with the product, whether it was any breach of the quality standard required by regulatory bodies or some other relevant factor.

4 0

2 years ago

Which of the following answer options are your employer's responsibility? (OSHA)

Dmitrij [34]

Answer: A, B, and C. ALL OF THE ABOVE!

Explanation:

They're all the correct answer.

3 0

1 year ago

Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The f

kicyunya [14]

Answer:

Extra shares required is 1,314,975

Explanation:

Outstanding shares of a firm are those shares that have already been issued to the general public and finds have been received by the company in exchange.

Current price per share = (Total value of shares ÷ Number of shares) ÷ Discount rate

Current price per share= (400,000 ÷ 250,000) ÷ 0.16

Current price per share= $10

Value of firm with project= Initial cost + {(Value of outstanding stock + Annual Perpetual cash flow) ÷ Discount rate}

Value of firm with project= -350,000+ {(400,000+ 60,000)÷0.16}

Value of firm with project= $2,525,000

New price per share= 2,525,000 ÷ 250,000= $10.10

Extra amount needed for project= 2,525,000 - 400,000= 2,152,000

Extra shares required= (2,152,000 ÷ $10.10)÷ 0.16

Extra shares required= 1,314,975

8 0

2 years ago