All categories

2 years ago

Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding

Business

1 answer:

hichkok12 [17]2 years ago

8 0

Answer:

FV= $240.08

Explanation:

Giving the following information:

Sue now has $125.

Number of periods= 8 years

Interest rate= 8.5% with annual compounding

To calculate the future value of the investment, we need to use the following formula:

FV= PV*(1+i)^n

FV= 125*(1.085)^8

FV= $240.08

You might be interested in

Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the foll

Phantasy [73]

Answer:

The fixed cost, variable cost per unit and the total cost is $3,800, $4 per unit ,and $6,000 respectively

Explanation:

1. The computation of the variable cost per unit is shown below:

= (High total cost - low total cost) ÷ (High number of cavities - low number of cavities)

= ($6,500 - $5,200) ÷ (675 - 350)

= $1,300 ÷ 325

= $4

2. The computation of the fixed cost is shown below:

Fixed cost = total cost - Variable cost

= $6,500 - (675 × $4)

= $6,500 - $2,700

= $3,800

3. And, the total cost for 550 cavities would be equal to

= Fixed cost + variable cost

= $3,800 + (550 cavities × $4)

= $3,800 + $2,200)

= $6,000

3 0

1 year ago

What type of spending depends primarily on these three factors: the interest rate, the expected future level of real GDP, and th

Montano1993 [528]

Answer:

The correct answer is : Planned Investment Spending

Explanation:

This is the spending which business plans to commit to during a special period of time. It is related to the interest rate. It is done in order to gain capital goods or stock and they are used to speed up the movement of cash in a company. This investment is intended by firms

7 0

2 years ago

Victor works for a company that highly values performance-oriented traits, such as achieving a certain level of sales and increa

Katen [24]

Answer:

e. masculinity/femininity

Explanation:

This refers to the allocation of positions between males and females. Within patriarchal cultures, the responsibilities of females and males differ very little and men are supposed to act forthrightly. Showing your performance, being quick and strong, is seen as a good attribute.In this aspect, masculinity is described as "a social preference for success, bravery, confidence, and material benefit for achievement." Its counterpart stands for "inclination to collaboration, chastity, care for the vulnerable and living standards."

8 0

2 years ago

Macinski Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $95,00

Montano1993 [528]

The nature of the lease arrangement is that of a finance lease. the following journal entries will be passed in the books of accounts:

Explanation:

a. This is because Sharrer Corporation (the lesse) will assume the risks of normal ownership. Maintenance is also not provided by the lessor.

Mike Macinski should, thus, use direct financing lease method. Lease receivable will be $95,000 and interest will be recognized annually.

b. Present value interest factor of annuity for 9% and 3 years = 2.531 (from PVIFA tables)

Annual payment will be = 95,000 by 2.531 = $37,534.57

Interest will be calculated on the opening balance of principal, at the rate of 9%. Thus, interest for the 1st year will be = 95,000 into 0.09 = $8550.

Principal paud during the year = total amount paid - interest amount. closing principal amount = opening principal - principal amount paid.

Period Cash due Interest Principal Balance

0 95,000.00

1 37,534.57 8,550.00 28,984.57 66,015.43

2 37,534.57 5,941.39 31,593.18 34,422.25

3 37,534.57 3,112.33 34,422.25 0.00

c. Entry for the signing of the lease agreement:

Fixed assets account (Dr) 95,000

Lease Payable account (Cr) 95,000

Entry on 31st December 2014:

Lease payable account (Dr) 28984.57

Interest account (Dr) 8550

Cash (Cr) 37534.57

Entry on 31st december 2015:

Lease payable account (Dr) 31593.18

Interest account (Dr) 5941.39

Cash (Cr) 37534.57

Entry on 31st december 2016:

Lease payable account (Dr) 34422.25

Interest account (Dr) 3112.33

Cash (Cr) 37534.57

5 0

2 years ago

Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000 CBM and that 89 percent is shipped d

RSB [31]

Answer:

The total cost involved in shipping the containers to country U.S is $2,594,930

Explanation:

Consider the following information regarding Company WWG:

Total Current volume (CBM) = 190,000

Direct shipping percentage = 0.89

Direct ship Volume (CBM) = 169,100

Consolidation center volume = 190,000 - 169,100 = 20,900

Calculate the shipping cost of the company as shown below:

Shipping Cost calculations

Direct ship by Container type (in Feet) 20 40

Volume (%) 0.21 0.79

Volume (CBM) 169,100*0.21 169,100*0.79

= 35,511 =133,589

Container capacity used 85% 85%

Container center by container type

Volume (%) = 100

Volume (CBM) = 20,900

Container capacity used = 96%

Container capacity (CBM) (34)

Container shipped = 35,511/ (34*0.85) =1,229

Shipping Cost per container = $480

Shipping Cost by container size ($) = 1,229*480 4589,920

Container capacity (CBM) (67)

Container shipped = 133,589/ (0.85*67) + 20,900/ (0.96*67) = 2,671

Shipping Cost per container = $600

Shipping Cost by container size ($) = 2,671*600 = $1,602,600

Calculate the total shipping cost as shown below:

Total shipping cost = $589,920+$1,602,600 = $2,192,520

Calculate the consolidation center operating cost as shown below:

Number of centers = 4

Annual fixed cost per center = $75,000

Total annual fixed cost = $75,000*4 =$300,000

Variable cost per CBM = $4.9

Total annual variable cost = 20,900*$4.9 = $102,410

Total annual consolidation center costs = $300,000+$102,410= $402,410

Calculate the total cost involved in shipping containers to the Country U as shown below:

Total Cost = Total Shipping Cost + Total Annual Consolidation center Cost

= $2,192,520 + $402,410

= $2,594,930

Hence, the total cost involved in shipping the containers to country U.S is $2,594,930.

4 0

2 years ago