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Zina [86]
2 years ago
11

You are going to deposit $21,000 today. You will earn an annual rate of 4.1 percent for 15 years, and then earn an annual rate o

f 3.5 percent for 18 years. How much will you have in your account in 33 years?
Business
1 answer:
Dafna11 [192]2 years ago
3 0

Answer:

$71,720.

Explanation:

We can find the answer by finding the future value for the two periods (the 15 years under 4.1% interest rate, and the 18 years under 3.5% interest rate) using the future value of an investment formula:

FV = PV (1 + i)^n

Where:

  • FV = Future value
  • PV = Present value
  • i = interest rate
  • n = number of compounding periods

Now, for the first period of time, we plug the amounts into the formula:

FV = $21,000 (1 + 0.041)^15

FV = $38,369

Now, we take that result, and apply the same formula:

FV = $38,369 (1 + 0.035)^18

FV = $71,270

So, the total amount you will have in your account after 33 years is $71,720.

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A monopolist makes self‑cleaning jackets. At a price of $100 each, it can sell 20 jackets. At a price of $98 each, it can sell 2
tatiyna

Answer:

The answer is $2,000

Explanation:

A monopolist is a single seller in the industry. A monopolist can influence the market price because he is the only one selling the product in the industry and has many buyers. Monopoly is an imperfect market and there are price discriminations in this market. A monopolist can charge different prices for different people.

We have first degree price discriminations, second degree price discriminations and third degree price discriminations.

Total revenue = selling price x units sold

Selling price is $100

Units sold is 20 jackets

Total revenue is therefore, $100 x 20 jackets

=$2,000

6 0
2 years ago
On January 2, 2018, Hernandez, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annu
alex41 [277]

Answer:

The below additional piece of information is missing from the question:

In its 2018 income statement, what amount of interest expense should Hernandez report from this lease transaction?

The interest expense for 2018 is $150,000

Explanation:

Interest expense for 2018 is the implicit interest 10% multiplied by the difference present value of $1,800,000 minus annual payment of $300,000.

In order to compute the interest expense,the annual payment must be deducted first since the annual payment was made at the start of the year,hence interest is only due on the net amount of $1,500,000($1,800,000-$300,000).

Interest expense=$1,500,000*10%=$150,000

8 0
2 years ago
Protec Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is
taurus [48]

Answer:

The correct answer is 8.23%.

Explanation:

According to the scenario, the computation can be done as:

WACC of debt = Respective costs of debt× Respective weight of debt

= (0.4 × 5)

= 2

WACC of preferred = Respective costs of preferred × Respective weight of preferred

= (0.15 × 7)

= 1.05

WACC of common equity = Respective costs of common equity × Respective weight of retained earning

= (0.45 × 11.5)

= 5.175

So, Total WACC = WACC of debt + WACC of preferred + WACC of common equity

= 2 + 1.05 + 5.175

= 8.225 or 8.23 (approx.)

3 0
2 years ago
Assume Italy and Niger can both produce grain and dates, and that the only limited resource is the farming labor force, meaning
ehidna [41]

Answer:

absolute on grain: neither, both produce 10

comparative grain: Italy as renounce to less tonds of dates: 0.5 to 2.5

absolute dates: Niger 25 to 5

comparative dates: Niger as it cost 0.4 tonds of grain to produce 1 ton of dates.

Explanation:

For the absolute, we will check which yield the better number.

Fot the comparative, we will check the opportunity cost:

<em>output/potential output of another product</em>

<em />

opp cost grain in Italy: 5/10 = 0.5 tons of dates

opp cost grain in Niger: 25/10 = 2.5 tonds of dates

opp cost dates in Italy: 10/5 = 2 tonds of grain

opp cost dates in Niger 10/25 = 0.4 tonds of grain

6 0
2 years ago
At the end of 2017​, Apple had cash and​ short-term investments of $ 74.48 ​billion, accounts receivable of $ 17.58 ​billion, cu
yarga [219]

Answer:

a. Apple current ratio =  Current asset / Current liabilities

                                    =   $128.78billion/ $101.27billion

                                     = 1.27

b Apple Quick ratio    =  (Current asset - Inventory ) / Current liabilities

                                     = ( $74.48billion + $17.58billion)/ $101.27billion

                                     =  $92.06billion/$101.27billion

                                     =  0.91

c. Apple Cash ratio   = cash and short-term investment / current liabilities

                                   =  $74.48billion / $101.27billion

                                  =   0.77

d. By comparing the computed ratios of Apple and HPQ, it shows that Apple asset liquidity is better than that of HPQ.  The current ratio of Apple is 1.27 as against 0.96 for HPQ. also in term of Quick ratio, Apple has 0.91 while HPQ has 0.54.  The cash ratio of HPQ is 0.33 while Apple figure stood at 0.77

Explanation:

5 0
2 years ago
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