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Lena [83]
2 years ago
13

To save for a new car, Samuel Smith will invest $3,000 at the end of each year for the next 5 years. The interest rate is 8%. Wh

at is the future value?
Business
1 answer:
Anna [14]2 years ago
3 0

Answer:  FV = A((1 + r)n - 1)/r

FV = $3,000((1 + 0.08)5 - 1)/0.08

FV = $3,000((1.08)5 - 1)/0.08

FV = $3,000(1.4693280768 - 1)/0.08

FV = $3,000(0.4693280768)/0.08

FV = $3,000 x 5.86660096

FV = $17,599.80

Explanation: The question relates to future value of an ordinary annuity. The variables are defined below:

FV = Future value = ?

A = Annuity per period = $3,000

n = No of years = 5 years

r = Interest rate = 8% = 0.08

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MaryJane’s Bakery manufactures and sells a variety of baked goods. The selling price per dozen of chocolate glazed dunuts is $8.
Roman55 [17]

Answer:

$4.20

Explanation:

4 0
2 years ago
A production manager is responsible for a production budget and can potentially earn an additional bonus for minimising producti
sp2606 [1]

Answer:

The pro side of not listing the 10% would be that until the price reduction becomes official it could be considered just a rumor. The unethical argument for keeping the knowledge that will drop 10% is that the production manager kept from his boss the knowledge that a possible impending reduction could save the company money.

5 0
2 years ago
clarissa wants to fund a growing perpetuity that will pay $5000 per year to a local museum, starting next year. She wants the an
Sergeeva-Olga [200]

Answer:

$166,666.67

Explanation:

Clarissa wants to take charge of finding a growing perpetuity that will pay a total amount of $5,000 per year to a local museum

She wants the annual amount paid to the museum to grow by 5% per year

= 5/100

= 0.05

The interest rate is 8%

= 8/100

= 0.08

Therefore, the amount used to fund the perpetuity can be calculated as follows

Pvo= $5,000/(0.08-0.05)

= $5,000/0.03

= $166,666.67

Hence Clarissa needs $166,666.67 to fund the perpetuity.

4 0
2 years ago
A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.6
tatyana61 [14]

Answer:

NPV is positive,the project should be accepted

Explanation:

In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.

The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.

Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80  

Net present value=$ 151,509.80-$125,374.60=$ 26,135.20  

The investment has a positive NPV,hence should be accepted

4 0
2 years ago
Economists use the word equality to describe a situation in which a. each member of society has the same income. b. each member
Harman [31]

Answer:

Answer is option A, i.e. each member of the society has the same income

Explanation:

Regarding economics or, we can say in the language of economists, equality can be defined as a situation when each member of the society, regardless of their gender, profession, and hard work; has an equal amount of wealth. It means that when each one in the society has access to all the available resources, and each one of them can afford those goods and services, then they are said to be economically equal.

7 0
2 years ago
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