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2 years ago

How to solve the time value of money problems

Business

1 answer:

erastova [34]2 years ago

8 0

Answer:

The Time Value of Money formula is FV = PV x [ 1 + (i / n) ] (n x t)] where V is the Future value of money, PV is the Present value of money, i is the interest rate, n is the number of impounding periods per year, and t is the number of years.

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Students in mr. mckay's class are generating ideas about ways to deal with the problem of limited resources for the homeless hig

Vlad [161]

The approach that Mr. McKay is using in the setting is the problem based learning. The PBL or the Problem based learning is defined as a student centered pedagogy by which students are likely to learn a particular subject based from the experience of having to solve open ended problem found in a material that triggers it.

5 0

3 years ago

North Company has completed all of its operating budgets. The sales budget for the year shows 50,220 units and total sales of $2

Oduvanchick [21]

Answer:

A budgered income statement was prepared for North company for the year ending December 31st 2020.

Explanation:

Solution

The NORTH COMPANY

Budgeted Income Statement

For the year December 31st, 2020 Ended

Particulars Amount

Sales $2,414,100

Less: Cost of goods sold

[50,220 Units x $23.00 per unit] -11,55,060

The Gross Profit 12,59,040

Less: Selling and administrative expenses -3,09,700

Earnings before interest and taxes 9,49,340

Less: Interest Expenses -10,260

The earnings before taxes 9,39,080

Less: Income Taxes -2,26,200

The Net Income 7,12,880

The net income for the NORTH COMPANY for the year ended December 31st 2020 is $7,12,880

6 0

3 years ago

Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits an

ikadub [295]

Answer:

$ 226.04

Explanation:

Given:

Paying fund, FV = $ 30000

Interest rate, i = 2%

Time, t = 10 years

Now,

$\textup{PMT}=\textup{FV}[\frac{i}{(1+i)^n-1}]$

since, the payment is made monthly

thus,

n = 10 × 12 = 120 months

i = 2% / 12 = 0.02 / 12

on substituting the values in the above equation, we get

$PMT={30000}[\frac{\frac{0.02}{12}}{(1+{\frac{0.02}{12}})^{120}-1}]$

PMT = $ 226.04

3 0

3 years ago

LO 7.3Which is not a section of the cash budget?

Bad White [126]

Answer:

allowance for uncollectible accounts

Explanation:

The cash budget represents the cash inflow and cash outflow position with respect of cash receipts and cash payments i.e cash disbursement plus it also involves financing needs i.e how much amount is to be borrowed

But it does not involve the allowance for uncollectible accounts as it is not shown in the cash budget because it is shown under the debtors side with the negative amount of the balance sheet

Assets

Current Assets

Account receivable XXXXX

Less: Allowance for uncollectible accounts XXXXX

Net account receivable XXXXX

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3 years ago

Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet G

Sedaia [141]

Answer:

If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.

Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.

Explanation:

3 0

3 years ago

How to solve the time value of money problems​

How to solve the time value of money problems