Answer:
They will have $37,595.23 in mutual fund in 15 years
Explanation:
<em>Step 1: Determine the present value of savings</em>
This can be expressed as;
Present value=monthly savings×number of months in 15 years
where;
monthly savings=$50
number of months in 15 years=12×15=180 months
replacing;
Present value=50×180=$9,000
<em>Step 2: Determine the future value of savings including interest</em>
This can be expressed as;
FV=PV(1+R)^N
where;
FV=future value
PV=present value
R=annual interest rate
N=number of years
In our case;
FV=unknown
PV=$9,000
R=10%=10/100=0.1
N=15 years
replacing;
FV=9,000(1+0.1)^15
FV=9,000(1.1)^15
FV=$37,595.23
They will have $37,595.23 in mutual fund in 15 years
Answer: A physical object we find, grow, or make to meet our needs and those of others.
Explanation: A commodity is an object that possesses a certain form of value, it can be used to meet an immediate need of a person.
It can be grown or produced to meet the specified needed requirements of the particular need it solves.
Answer: $3,338.56.
Explanation:
Given, EAR = 11.4 percent =0.114
Weekly interest rate=
Growth rate of price of flowers = 3.3 % per year
Weekly growth rate=
Star Cost (C)= $6
Time period (t)= 25 years
= 25 x 52 = 1300 weeks
Required formula for growing annuity :
![PV=\dfrac{C}{r-g}[1-(\dfrac{1+g}{1+r})^t]](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7BC%7D%7Br-g%7D%5B1-%28%5Cdfrac%7B1%2Bg%7D%7B1%2Br%7D%29%5Et%5D)
,
where C = Star cost
r = rate per period
g= growth rate
t = time period
![PV=\dfrac{6}{0.00219-0.00063}[1-(\dfrac{1+0.00063}{1+0.00219})^{1300}]\\\\=\dfrac{6}{0.00156}[1-(0.998443408934)^{1300}]\\\\=(3846.15384615)[1-0.13197471131]\\\\=(3846.15384615)(0.86802528869)\approx\$3338.56](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7B6%7D%7B0.00219-0.00063%7D%5B1-%28%5Cdfrac%7B1%2B0.00063%7D%7B1%2B0.00219%7D%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%5Cdfrac%7B6%7D%7B0.00156%7D%5B1-%280.998443408934%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%283846.15384615%29%5B1-0.13197471131%5D%5C%5C%5C%5C%3D%283846.15384615%29%280.86802528869%29%5Capprox%5C%243338.56)
Hence, the present value of this commitment = $3,338.56.
Answer:
The correct answer is False.
Explanation:
This statement that, an advantage of FIFO is that it assigns the most recent costs to cost of goods sold and does a better job of matching current costs with revenues on the income statement, is not correct.
Under fifo method the most recent cost is assign to closing not COGS. It is LIFO method (last in first out ) in which the most recent costs is assign to cost of goods sold. Under the fifo method cost that is incurred first is charged first to COGS.
Answer:
It is cheaper to make the part in house.
Explanation:
Giving the following information:
Harrison Enterprises currently produces 8,000 units of part B13.
Current unit costs for part B13 are as follows:
Direct materials $12
Direct labor 9
Factory rent 7
Administrative costs 10
General factory overhead (allocated) 7
Total $45
If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.
To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.
Unavoidable costs:
Factory rent= 7
Administrative costs= 5
General factory overhead= 7
Total= 17
Now, we can calculate the unitary cost of making the product in-house:
Unitary cost= direct material + direct labor + avoidable administrative costs
Unitary cost= 7 + 5 + 5= $17
It is cheaper to make the part in house.
