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FrozenT [24]
2 years ago
7

If Randy invests $15,000 at a 9% interest

Business
1 answer:
WITCHER [35]2 years ago
8 0

It will take 8.04 years for the initial investment of $15000 to become $30,000

What is the future value of an investment?

The future value of $15,000 invested now earning a rate of return of 9% per year is $30,000, it the future equivalent of an amount invested now when the invested amount has earned interest over a specific period of time.

The below future value formula of single cash flow can be used to determine the number of years it takes for the initial investment to double.

FV=PV*(1+r)^N

FV=future value=$30,000

PV=initial investment=$15,000

r=rate of return=9%

N=number of years it takes for the initial investment to double=unknown(assume it is X)

$30,000=$15000*(1+9%)^N

$30000/$15000=(1+9%)^N

2=1.09^N

take log  of both sides

ln(2)=N*ln(1.09)

N=ln(2)/ln(1.09)

N=8.04 years

Find out more about future value on:brainly.com/question/24703884

#SPJ1

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AnnZ [28]

Answer:

a.                          Acct. receivable   % uncollectible   Est. uncollectible

1-30 days old           $63,000                      3%                    $1,890

31-90 days old         $12,000                      14%                   $1,680

> 90 days old           $5,000                       37%                  <u>$1,850</u>

                                                                   Total                   <u>$5,420</u>

b. Date   General journal                                         Debit    Credit

Dec 31    Bad debts expenses                                $5,150

                      Allowance for doubtful accounts                   $5,150

              ($5,420 - $270)

6 0
3 years ago
Fortune Enterprises is an all-equity firm that is considering issuing $13.5 million of perpetual debt. The interest rate is 10%.
Nuetrik [128]

Answer:

d. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan

Explanation:

interests paid to debt holders = $13,500,000 x 10% = $1,350,000

generally, interest revenue is taxed as ordinary revenue = corporate income tax rate (if debt holder is a business) or personal income tax (if debt holder is an individual).

under the first plan, debt holders get nothing because there is no outstanding debt since the company is an all equity firm.

under the second plan, if the personal tax rate on interest income is 55%, which is really high, the debt holders will earn $1,350,000 x (1 - 55%) = $607,500

8 0
3 years ago
Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life 12years Yearl
Vlada [557]

Answer:

$339,600

Explanation:

The internal rate of return is the relationship between the price of the equipment and their yearly cash flow. the IRR makes the net present value equal to zero thus, it makes the present value of the yearly cashflow equal to the cost:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 60,000.00

time 12

rate 0.14

60000 \times \frac{1-(1+0.14)^{-12} }{0.14} = PV\\

PV $339,617.5275

<em><u>From the given option:</u></em>

$ 339,600 is the closest option.

7 0
3 years ago
Which of the following statements about the Uniform Commercial Code (UCC) is true? Group of answer choices The UCC contract form
sergey [27]

Answer:

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Explanation:

Elements "Offer" and "Acceptance" together form mutual assent. Also, in order to be enforceable, the contract must be for a legal purpose and parties to the contract must have capacity to enter into the contract, that part is related to consideration.

Offer → gives power of acceptance to another party, besides it includes the agreement´s essential elements (they have to be definite and certain).

Acceptance → must be a mirror image of the offer.

Consideration → All common-law contract must contain this element as a valid one. It means that there must be a bargained for interexchange of acts or promises, both parties incurring new legal detriment or obligations as a consequence of the contract.

8 0
3 years ago
HELP BUSINESS ENGLISH!
yulyashka [42]
I believe the answer should be C. autonomy.
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