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2 years ago

What is the approximate future value of $1,000 compounded at 10% interest (end of period) over a three-year period

Business

1 answer:

Ahat [919]2 years ago

5 0

The future value for annuity is $3030.

<h3>What is future value of an annuity?</h3>

The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, and discount rate, is the future value of the annuity. The future value of the annuity increases with the discount rate.

Some key features of future value of annuity are-

A approach to determine how much money a stream of payments will be worth at some future date is to determine future value of an annuity.
A present value of an annuity, on the other hand, calculates how much cash will be needed to provide a series of future payments.
Payments are made in a typical annuity at the conclusion of each predetermined time frame.
Payments are made at the start of each period in an annuity payable.

The formula for future value of annuity are-

F.V = P× $\frac{\left((1+r)^{n}-1\right)}{r}$

F.V = future value of annuity

P = Initial deposit; $1,000

r = rate of interest; 10%

Substitute the given values in the formula;

F.V = 1,000× $\frac{\left((1+0.01)^{3}-1\right)}{0.01}$

= 1,000×3.03

F.V = 3030

Therefore, the future value of the annuity of the deposited amount of $1,000 is $3030.

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Answer:

A recession

Explanation:

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3 years ago

10) A blue ocean strategy A. B) involves a preemptive strike to secure an advantageous position in a fast-growing market segment

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Answer:

The correct answer is D) offers growth in revenues and profits by discovering or inventing a new industry or distinct market segment that renders rivals largely irrelevant and allows a company to create and capture altogether new demand.

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The blue ocean strategy is a marketing theory that determines the need for organizations to forget about competition and focus especially on creating their own growth possibilities, which allows perceiving other variables that are of greater importance for business and that generally remain hidden due to the price war in which the market has been involved.

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4 years ago

FOB ______ is the term used when ownership of the goods transfers to a buyer when the goods arrive at the buyer's place of busin

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FOB <u>destination</u> is the term used when ownership of the goods transfers to a buyer when the goods arrive at the buyer's place of business.

<h3>What is FOB destination?</h3>

FOB which full meaning is freight on board is a form of goods or product shipment in which the seller is fully incharge or in possession of the goods until the goods reach the buyer destination in which the ownership of the goods is then transfers to a buyer.

Once the ownership of the goods transfers to a buyer, this means that the buyer is the owner of the goods and is liable for any damage that occur to the goods.

Inconclusion FOB <u>destination</u> is the term used when ownership of the goods transfers to a buyer when the goods arrive at the buyer's place of business.

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2 years ago

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3 years ago

You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $50

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Answer:

If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.

Explanation:

To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).

$AFC=\frac{\mbox{Fixed costs}}{\mbox{Printed papers}} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{1000000 papers}=1.5\frac{\$}{paper} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{800000 papers}=1.875 \frac{\$}{paper}$

$\mbox{Porcentual difference}=\frac{\mbox{difference between AFC}}{\mbox{original AFC}} \\\\\mbox{Porcentual difference}=\frac{1.875-1.50}{1.50}*100=\frac{0.375}{1.5} *100=25\%$

We can see that as the output reduced, AFC rose 38 cents per paper or a 25% increase in AFC.

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3 years ago