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2 years ago

How much would $1, growing at 3.5% per year, be worth after 75 years? a. $12.54b. $13.20c. $13.86d. $14.55e. $15.28

Business

2 answers:

rosijanka [135]2 years ago

7 0

Answer:

The correct answer is letter "B": $13.20.

Explanation:

The time value of money is a concept that states that a dollar today is always worth more than a dollar tomorrow based on the interest that can be accrued. In that sense, the sooner the money is received, the better since there will be more time for the interest to grow. The future value of money is calculated with the following formula:

FV=PV x [1+ i/n]^((n x t))

Where:

FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years

In the example:

FV = ?

PV = $1

i = 3,5%

n = 1

t = 75

Thus,

FV= $1 x [1+ (3,5%)/1]^((1 x 75))

FV= $1 x [1+ (35/10 x 1/100)/1]^((75))

FV= $1 x [1+ (35/1000)/(1/1)]^((75))

FV= $1 x [1+ 35/1000]^((75))

FV= $13,1985 ≅$13,20

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mixer [17]2 years ago

4 0

Answer:

14.55

Explanation:

i think this is right and I hope that it helps:)

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Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. J

kkurt [141]

Answer:

$4,835

Explanation:

The computation of the payment made by Long is shown below:

= Sale value of video system - discount + freight charges

where,

Discount = Sale value × discount rate

= $6,000 × 2%

= $1,200

The other items values remain the same

Now put all the values to the above formula,

So, the value would be equal to

= $6,000 - $1,200 + $35

= $4,835

6 0

2 years ago

Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a p

Ne4ueva [31]

Answer:

1. Variable Fixed

Cost of goods sold 70,000,000 30,000,000

Selling Expenses 12,000,000 4,000,000

Administrative Exp. 6,000,000 6,000,000

Total 88,000,000 40,000,000

Note:

Cost of goods sold 70% 30% on 10,000,000 for variable and Fixed respectively

Selling expenses 75% 25% on $16,000,000 for variable and Fixed respectively

Administrative expenses 50% 50% on $12,000,000 for variable and Fixed respectively

2. Unit Variable cost = Total variable cost / Units produced

Total Variable cost 88,000,000

Unit produced 1,000,000

Unit variable cost  88 

Unit Contribution margin = Selling Price - Variable cost per unit

Selling Price $188

- Variable cost per unit $88

Unit Contribution margin $100

3. Break even Point (Units) = Fixed cost / Contribution margin per unit

Fixed cost 40,000,000

Contribution margin per Unit 100

Break even Point (Units) 400,000

4. Break even point (units) = Fixed cost / Contribution margin per unit

Fixed cost 40,000,000

Increased Fixed cost 5,000,000

Total New fixed cost 45,000,000

Contribution margin per unit 100

Break even point (units) 450,000

5. Determined sales units = (New fixed cost + Desired Income) / Contribution margin

New Fixed Cost 45,000,000

Desired Income 60,000,000

105,000,000

Contribution margin 100

per unit

Determined sales units 1,050,000

6. Maximum Income from operation = Total New sales - Total New variable cost - Total Fixed cost

Sales 188,000,000

Increased sales 11,280,000

Total New sales 199,289,000

Variable cost 88,000,000

New Variable cost 5,280,000

Total New Variable cost 93,280,000

Total New Fixed cost 45,000,000

Maximum Income from 61,000,000

operation

Number of units = Increase in sales / Price per unit

New variable cost = Number of units * Unit variable cost

Increased sales 11,280,000

Price per unit 188

Number of units 60,000

Unit variable cost x 88.00

New Variable cost 5,280,000

7. Net income = Sales - Variable cost - New fixed cost

Sales 188,000,000

Less: Variable cost 88,000,000

Less: New fixed cost 45,000,000

Net Income 55,000,000

8. Option b. In favour of the proposal because of the possibility of increasing income from operation.

4 0

2 years ago

Someone who wants credentials in skilled training, but in less time than a four- year degree should consider...

Pavlova-9 [17]

Answer:

Career or technical education.

Explanation:

Someone who wants credentials in skilled training, but in less time than a four- year degree should consider Career or technical education.

A technical education course is solely based on providing skilled training which will help the student to learn the practicalities in a shorter period of time.

They are focused on a specific kind of skilled training which you can use in your career. Technical education is also known by the name of a diploma which can be completed in a period of 2 years or even in a period of months.

4 0

2 years ago

Cold Boxes Ltd. has 100 bonds outstanding (maturity value = $1,000). The nominal required rate of return on these bonds is curre

pentagon [3]

Answer:

correct option is c.4%

Explanation:

given data

maturity value = $1,000

nominal rate of return r = 10 percent = 5 % semi annually = 0.05

mature time t = 5 years = 10 semi annually

current market value = $768

solution

we apply here present value formula that is

present value = coupon rate × maturity value × $\frac{1-(1+r)^{-t}}{r}$ + $\frac{mature\ value}{(1+r)^{-n}}$ ..............1

put here value and we get

$768 = coupon rate × $1000 × $\frac{1-(1+0.05)^{-10}}{0.05}$ × $\frac{1000}{(1+0.05)^{-10}}$

solve it we get

coupon rate = 1.99549 % Semi-annual

so here annual coupon interest rate is = 2 × 1.99549 %

annual coupon interest rate is 3.99 = 4%

so correct option is c.4%

8 0

2 years ago

Preparing Closing Procedures The adjusted trial balance of Parker Corporation, prepared December 31, 2018, contains the followin

Naily [24]

Answer:

Parker Corporation

a) Closing Journal Entries:

General Journal

Description Debit Credit

12/31

Service fees revenue $92,500

Interest income 2,200

Retained earnings 42,700

Income Summary $137,400

To close credit items to the Income Summary.

Income Summary $64,700

Salaries expense $41,800

Advertising expense 4,300

Depreciation expense 8,700

Income tax expense 9,900

To close debit items to the Income Summary.

b. T-accounts:

Debit Credit

Service fees revenue

Adjusted balance $92,500

Income Summary $92,500

Balance $0

Interest income

Adjusted balance $2,200

Income Summary $2,200

Balance $0

Salaries expense

Adjusted balance $41,800

Income Summary $41,800

Balance $0

Advertising expense

Adjusted balance $4,300

Income Summary $4,300

Balance $0

Depreciation expense

Adjusted balance 8,700

Income Summary $8,700

Balance $0

Income tax expense

Adjusted balance 9,900

Income Summary $9,900

Balance $0

Retained earnings

Adjusted Balance 42,700

Income Summary $42,700

Balance $0

Explanation:

a) Data:

Parker Corporation

Adjusted Account Balances

Debit Credit

Service fees revenue $92,500

Interest income 2,200

Salaries expense $41,800

Advertising expense 4,300

Depreciation expense 8,700

Income tax expense 9,900

Retained earnings 42,700

6 0

2 years ago