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2 years ago

6) For which of the following should you save?

Business

2 answers:

aleksandr82 [10.1K]2 years ago

6 0

For my retirement and my family future

mixer [17]2 years ago

3 0

Answer:

D). All of the above

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Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the accoun

777dan777 [17]

Answer:

FV= $7,435.74

Explanation:

Giving the following information:

Initial investment= $6,400

Interest rate= 1.5%

Number of periods= 10 years

To calculate the value of the account in ten years, we need to use the following formula:

FV= PV*e^(i*n)

FV= 6,400*e^(0.015*10)

FV= $7,435.74

6 0

3 years ago

Knightmare, Inc., will pay a dividend of $6.15, $9.05, and $12.25 per share for each of the next three years, respectively. The

iVinArrow [24]

Answer:

The current stock price is $21.54

Explanation:

The current price of the share of Knightmare Inc is the present value of all future cash flows receivable from owning stake in the company.

The future cash flows in this sense are the dividends payable by the company in years 1,2 and 3 which are $6.15,$9.05 and $12.25 per share respectively.

The discount factor in this case is given as 1/(1+r)^N where r is the required rate of return of 11.7% and the relevant year of dividend receipt,hence the share price is computed thus:

Year cash flow discount factor PV

1 $6.15 1/(1+11.7%)^1=0.89525 $5.5

2 $9.05 1/(1+11.7%)^2=0.80148 $7,25

3 $12.25 1/(1+11.7%)^3=0.71753 $8.79

Total present value $21.54

4 0

3 years ago

Read 2 more answers

At the end of the current year, using the aging of receivable method, management estimated that $28,500 of the accounts receivab

lyudmila [28]

Answer:

Adjusting entry the company made to record its estimated bad debts expense:

Bad Debts Expense 29,300

Allowance for Doubtful Accounts 29,300

Explanation:

The company uses the aging of receivable method to estimate uncollectible.

Estimated uncollectible would be $28,500

Before year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $800

Bad debts expense = $28,500 + $800 = $29,300

Adjusting entry the company made to record its estimated bad debts expense:

Bad Debts Expense 29,300

Allowance for Doubtful Accounts 29,300

3 0

3 years ago

12. Describe an alternative investment that you might invest in someday, and explain why this investment is appealing to you

Ivenika [448]

I would invest in building my own house. This is appealing to me because I want to raise a family in a nice house that I have built.

4 0

3 years ago

Read 2 more answers

Vaughn Manufacturing purchased machinery for $980000 on January 1, 2017. Straight-line depreciation has been recorded based on a

Tresset [83]

Answer:

selling price= $199,633

Explanation:

First, we need to calculate the book value at the moment of the sale:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (980,000 - 56,500) / 5

Annual depreciation= $184,700

Accumulated depreciation= (4*184,700) + (184,700/12)*4

Accumulated depreciation= $800,367

Book value on May 1st:

Book value= purchase price - accumulated depreciation

Book value= 980,000 - 800,367

Book value= $179,633

Now, if the company makes a profit, the selling price was higher than the book value:

Gain= selling price - book value

20,000= selling price - 179,633

selling price= $199,633

4 0

3 years ago