Answer:
The correct answer is B.
Explanation:
Giving the following information:
One year ago, Deltona Motor Parts deposited $16,500 in an investment account to buy new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today.
To calculate the future value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
First deposit= 16,500*(1.045^4)= 19,676.56
Second deposit= 12,000*(1.045^3)= 13,694
Third deposit= 20,000*(1.045^2)= 21,840.5
Total= $55,211.06
Answer:
The correct answer is letter "E": A price war.
Explanation:
A price war is a situation in which competitors undercut prices to offer their products at a lower level than their rivals so they can attract more consumers. Manufacturers find ways to cut their costs so they can stay profitable under these circumstances. If they are unable to do that, the company will end up with losses.
Answer:
annual rate of interest = 9.01 %
Explanation:
given data
future value = $345,000
present value = $73,000
time period = 18 years
to find out
annual rate of interest
solution
we get here annual rate of interest that is express as
annual rate of interest = 
- 1 ..................................1
put here value and we get annual rate of interest that is
annual rate of interest = 
- 1
annual rate of interest = 9.01 %
Answer:
Explanation:
1. Present value = Annuity amount * PVA (n=4;i=10%)
250,000 = Annuity amount*3.16987
Annuity amount = $78,868
2. Present value = Annuity amount * PVA (n=5;i=8%)
250,000 = Annuity amount* 3.99271
Annuity amount = $62,614
3. i = 10%
Annual payments = $51,351
250,000 = 51,351 *X
X = 4.86845
When looking at the table of present value of an ordinary annuity, PVA of 4.86845 and i=10%, ⇒ n = 7 payments
4.
Payments = 104,087
n = 3
250,000 = 104,087*X
X = 2.40184
When looking at the table of present value of an ordinary annuity, PVA of 2.40184 and n=3, ⇒ i = 12%
Answer:
I'm figuring this out for you!
Explanation:
