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dsp73
2 years ago
13

Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. What is the rate of return on the

trust fund?
Business
1 answer:
damaskus [11]2 years ago
7 0

Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. 9.60% is the rate of return on the trust fund.

FV =  Future Value

PV =  Present Value

r =  rate of interest

n=  no of period

   

FV/ PV =  (1 + r )^n

5000/2000   =  (1 + r%)^10

2.5 = (1 + r%)^10

r = 9.60%.

The rate of return is the net profit or loss of an investment over a period of time, expressed as a percentage of the original cost of the investment. 1 When calculating the rate of return, find the percentage change from the beginning of the period to the end of the period.

Learn more about the rate of return at

brainly.com/question/3578105

#SPJ4

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Percy works two part-time jobs to help pay for college classes. On Monday, he works 3 hours at the library and 2 hours at the co
shepuryov [24]

There are numerous types of part time jobs are available nowadays in order to earn money for the qualified workers. People can earn through part-time jobs without quieting their full-time opportunities.

<h3>How much does Percy earn each hour? </h3>

Correct option is C.

For the answer to the two questions above,

3x + 2y = 36.50.... (1)

2x + 5y = 50..... (2)

Then, Eliminating x from the two equations by subtraction:

First we multiply equation 1 by 2 and equation 2 by 1.

6x + 4y = 73

6x + 15y = 150

After that, Subtracting the two,

-11y = -77

y=-77/-11

y = 7

He earns $7 at the coffee cart.

Then, Substituting y into equation 1,

3x + 14 = 36.5

3(7)+14=36.5

x = $7.50

Therefore, he earns a greater wage of $7.50 at the library.

Learn more about part-time jobs, refer to the link:

brainly.com/question/919744

6 0
2 years ago
For each of the following scenarios, determine if it is an indicator of potential cash flow problems: (Hint: Review Chapter 5 Po
inn [45]

Answer:

a) yes

b) no

c) yes

d) no

Explanation:

a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow

b) this is the opposite as (a)  here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand

c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.

If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.

d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.

6 0
3 years ago
In your initial post, you are to write to either the President (on fiscal policy) or to the Chair of the Federal Reserve (on mon
german

Answer:

The existing state of American economy must be declared earlier respondent the interrogation.

The U.S. financial position is vigorous in 2017.The value rate is in its perfect vary i.e., 2.4 (2-3%).Joblessness is at its ordinary proportion and there isn't an excessive amount of rise or decrease. Conversely, the value is predicted to descent to a pair of 2.1% in 2018 and 2.0 in 2019. Drop in value would cause decrease in GDP and growth in state.

To avoid this drop I will be able to inscribe to manager of Federal Reserve Bank to cut back the rate (expansionary financial policy).Federal reserve will try this by shopping for bonds. Once Federal Reserve purchases bonds the money offer increases and rate decreases. As rate decreases mixture demand and financial gain increases. With escalation in financial gain and mixture demand the value wouldn't decrease in 2018 and 2019.

I would not recommend an expansionary economic policy as a result of it increases the rate yet and thus results in situation out.

6 0
3 years ago
Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10
Feliz [49]

Answer:

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is  $10,200.

Explanation:

In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is , we have to make the following calculations.

First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100

Hence, First year preferred dividend = $9,100-$8,000 = $1,100

Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

8 0
3 years ago
List TWO consequences for a company if they receive a qualified audit opinion
Lorico [155]
It can affect the company's ability to get a lending (borrow money). It can also affect the chances of finding an investor.
6 0
2 years ago
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