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Rudiy27
2 years ago
4

Varian wants to have $500,000 in an investment account six years from now. The account will pay .58 percent interest per month.

If he saves money every month, starting one month from now, how much will he have to save each month to reach his goal?Multiple Choicea. $5,391.05b. $5,360.94c. $5,053.86d. $5,614.90e. $6,049.86
Business
1 answer:
valentina_108 [34]2 years ago
5 0

Answer:

d. $5,614.90

Explanation:

The amount that the Varian will save at the end of the every month in order to have $500,000 at the end of the sixth year shall be determined through the future value of annuity formula which shall be calculated as follows:

Future value of annuity=R[((1+i)^n-1)/i]

In the given question

Future value of annuity=$500,000

R=amount that the Varian will be saved per month=?

i=  interest rate per month=0.58%

n= payments involved=6*12=72

$500,000=R[((1+0.58%)^72-1)/0.58%]

R=$5,614.90

So based on the above calculation, the answer shall be d. $5,614.90

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8 0
2 years ago
This chart represents the desired employers for four different Manufacturing employees. Manufacturing Employees Interested in Wo
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I think the answer is A.

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2 years ago
DAA's stock is selling for $15 per share. The firm's income, assets, and stock price have been growing at an annual 15 percent r
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Answer:

This question is incomplete since the required return is not pasted here. I checked on the web and found similar question with the firm's required rate of return is 18 percent. You can use this to solve the question as follows.

Explanation:

Use Dividend Discount Model (DDM) to find the intrinsic value of the stock.

Find the present value of dividends

D3 = 2

PV(of D3) = 2/(1.18^3) = 1.2173

D4 = D3(1+g) = 2(1+0.06) = 2.12

PV(of D4) = \frac{\frac{2.12}{0.18-0.06} }{1.18^{3} }

PV (of D4) = 17.6667/ 1.6430 = 10.7527

Next, sum up the present values ;

= 1.2173 + 10.7527

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Therefore, DAA's stock is currently overpriced ,so you should not buy it since it is only valued at $11.97 and not $15.

6 0
2 years ago
If the direct quote for a U.S. investor for British pounds is $1.43/£, then the indirect quote for the U.S. investor would be __
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Answer:

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7 0
2 years ago
Addie, Brady and Carson form Capital City Partnership. The Partnership Agreement provides profits and losses are divided equally
irinina [24]

Answer:

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Explanation:

The partnership is being dissolved and $1,500,000 will be distributed as follows:

$300,000 to pay debts to creditors

$450,000 to pay for Brady's loan

$300,000 for Brady's initial contribution

<u>$150,000 for Carson's initial contribution</u>

$300,000 are left to be divided equally between the three partners:

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3 0
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