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3 years ago

What is the future value of $12,000 after 5 years if the appropriate interest rate is 6%, compounded semiannually?

Business

1 answer:

gladu [14]3 years ago

6 0

Answer:

FV = $16126.99655 rounded off to $16127

Explanation:

To calculate the future value of a sum of money, we simply multiply the present value by (1 + interest rate) for the period of time that we require the amount to be compounded. Thus, the formula for the future value of a sum of amount with annual compounding is,

FV = P * (1+i)^t

Where,

FV is future value
PV is present value
i is the interest rate
t is the period of time

For semi annual compounding, we simply divide the annual i by 2 and multiply the t by 2. So, Future value of an amount with semi annual compounding will be,

FV = P * (1 + i/2)^t*2

FV = 12000 * (1 + 0.06/2)^5*2

FV = 12000 * (1+0.03)^10

FV = $16126.99655 rounded off to $16127

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Assume the macro islands can produce either 25 fishing boats or 150 jars of guava jelly in one hour. the micro islands can produ

LenKa [72]

Answer:

The correct answer is letter "C": the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.

Explanation:

Comparative advantage is an advantage an individual, organization or country has to use opportunity costs in their production compared to their competitors. The scenario described above does not imply that the individual, organization or country has an absolute advantage.

In the example proposed:

Comparative advantage of Macro islands in fishing boats = $\frac{25}{150}= 0.17$
Comparative advantage of Micro islands in fishing boats = $\frac{30}{300} = 0.10$

Comparative advantage of Macro islands in jars = $\frac{150}{25} = 6$
Comparative advantage of Micro islands in jars = $\frac{300}{30} = 10$

Thus, the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.

5 0

3 years ago

"A customer contributed $50,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $7

makvit [3.9K]

Answer: $20,000 of the distribution is taxable and $5,000 is not taxable

Explanation:

The options to the question are:

A. The entire $25,000 distribution is not taxable

B. $5,000 of the distribution is taxable and $20,000 is not taxable

C. $20,000 of the distribution is taxable and $5,000 is not taxable

D. The entire $25,000 distribution is taxable.

From the question, we are told that a customer contributed $50,000 to a variable annuity contract and that the account value has grown over the years and the NAV is now $70,000.

We are further told that the customer is now age 60, and takes a lump-sum distribution of $25,000 to pay for expenses. This indicates that there will be tax deductible in the amount of :

= $70000 - $50000 = $20,000. It should also be noted that $5000 won't be taxed.

4 0

4 years ago

How widely used are private correctional companies to operate jails?

Kobotan [32]

Not very, most of the time CO’s are underpaid so they can have mass amounts of them.

7 0

3 years ago

What is a disadvantage of renting?

Nataliya [291]

Answer: 1 and 3 is correct

6 0

3 years ago

Vaughn Manufacturing has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected

7nadin3 [17]

Answer:

expected income 105,000

Explanation:

Our goal would be to multiply the average contribution margin of the company by the total units produced.

$average \: contribution \times units\: sold = contribution \: margin\\30 \times (40,000 + 60,000) = 30\times 100,000 = 300,000$

Important: the given is the weighted average, so the units mix (40% STD 60% SUPREME) is taken into consideration already, no need to additional calculation. If we were told the Contribution Margin per type of unit we will be needing to calculate the average CM.

Now, second step will be subtract the fixed cost from the contribution to get the pretax income

$Net \:Income = contribution \: margin - fixed \: cost\\300,000 - 195,000 = 105,000$

3 0

3 years ago