1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Misha Larkins [42]
3 years ago
7

You have an investment account that started with ​$3 comma 000 10 years ago and which now has grown to ​$6 comma 000. a. What an

nual rate of return have you earned​ (you have made no additional contributions to the​ account)? b. If the investment account earns 15 % per year from now​ on, what will the​ account's value be 10 years from​ now?
Business
1 answer:
zloy xaker [14]3 years ago
8 0

Answer:

The correct answer for option (a) is 7.17% and for option (b) is $48,546.69.

Explanation:

According to the scenario, the given data are as follows:

(a) Present value = $3,000

Future value = $6,000

Time period = 10 years

So, we can calculate the annual rate of return by using following formula:

Rate of return = (( FV ÷ PV)^1/t  -1)

= (( $6,000 ÷ $3,000)^1/10 -1)

= (2)^0.1 - 1

= 1.07177346254 - 1

= .07177 or 7.17%

(b) Present value = $12,000

Rate of interest (r) = 15%

Time period = 10 year

So, we can calculate the Future value by using following formula:

FV = PV × ( 1+r)^t

= $12,000 × ( 1 + 15%)^10

= $12,000 × 4.04555773571

= $48,546.69

You might be interested in
Amy's school records describe her as a monochromat. what can we assume about amy's perceptual abilities
nirvana33 [79]
Estoy bien y tu ????

8 0
3 years ago
An investor purchased 100 shares of the cdl growth and income fund 3 years ago when the pop was $12 and the nav was $11.50. all
Norma-Jean [14]

The investor will show a capital loss of $155.

We gather the following information from this question:

Pop of the fund three years ago : $12

NAV of the fund three years ago : $11.50

Current Pop : $11

Current NAV : $10.45

Number of shares : 100 shares.

We need to calculate capital loss or gain on the 100 shares in the mutual fund.

While taking the cost per unit, <u>we need to consider the public-offer-price (pop) into consideration, since an investor can only buy the shares at pop</u>.

Similarly, while selling the shares, the <u>shareholder can liquidate his position by selling back to the mutual fund at the NAV prevailing at the end of the business day</u> on which he wants to sell.

So, the formula to calculate capital gain or loss is:

Capital gain or (loss) = (NAV per unit at liquidation - POP at purchase ) * No. of shares

Capital gain or (loss) = ($10.45 - $12 ) * 100

Capital gain or (loss) = ($155)

3 0
2 years ago
During each stage of a product's life cycle, the types and levels of sales, profits, and competition rise, peak, and eventually
Oliga [24]

Answer:

a

Explanation:

this is due to the initial uptake for the product . it levels to repeat customers but others drop off the sales due to other reasons

4 0
2 years ago
Journal Entries (Note Received, Discounted, Dishonored, and Collected)
Sholpan [36]

Answer:

Journal Entries:

Apr. 6 Debit 6% Notes receivable $2,700

Credit Accounts receivable $2,700

To record the receipt of a 120-day, 6% note for accounts receivable balance.

Apr. 26 Debit Cash $2,511

Debit Finance expense $189

Credit 6% Notes receivable $2,700

To record the discounted note at a rate of 7%.

May 3 Debit 7% Notes receivable $1,000

Credit Accounts receivable $1,000

To record the receipt of a 30-day, 7% note in payment for accounts receivable

June 2 Debit Accounts receivable $1,005.83

Credit 7% Notes receivable $1,000

Credit Interest revenue $5.83

To record the 30-day, 7% note is dishonored.

June 5 Debit Cash $1,005.83

Credit Accounts receivable $1,005.83

To record the receipt of cash and interest of 7% on the maturity value.

Explanation:

a) Data and Analysis:

Apr. 6 6% Notes receivable $2,700 Accounts receivable $2,700

Received a 120-day, 6% note

Apr. 26 Cash $2,511 Finance expense $189 6% Notes receivable $2,700 Discounted the note at a rate of 7%.

May 3 7% Notes receivable $1,000 Accounts receivable $1,000

Received a 30-day, 7% note in payment for accounts receivable

June 2 Accounts receivable $1,005.83 7% Notes receivable $1,000 Interest revenue $5.83 ($1,000 * 30/360) 30-day, 7% note is dishonored.

June 5 Cash $1,005.83 Accounts receivable $1,005.83

7% on the maturity value.

5 0
2 years ago
An increase in the real wage rate ________ the quantity of labor demanded, ______ the quantity of labor supplied, and when the l
svlad2 [7]

An increase in the real wage rate decreases the quantity of labor demanded, increases the quantity of labor supplied, and when the labor market is in equilibrium, equates demand and supply of labor.

<h3>What is real wage rate?</h3>

Real Wage Rate in economics refers to the result obtained by dividing the nominal wage rate by the prices of goods.

It is used as a more accurate measure of how much the spending power and is also an indicator of the standard of living of workers.

Learn more about real wage rate at:
brainly.com/question/6342231

7 0
2 years ago
Other questions:
  • SaaS refers to:
    7·1 answer
  • I.D. Clair Co. recorded a right-of-use asset of $100,000 in a 10-year operating lease. Payments of $14,795 are made annually at
    6·1 answer
  • The _____ is used to measure price changes in commonly used goods and services, such as food and housing.
    5·1 answer
  • Job analysis information should not be collected through:_______.
    11·1 answer
  • Savings account A and savings account B both offer APRs of 2%, but savings account A compounds interest quarterly, while savings
    12·2 answers
  • Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1
    6·2 answers
  • An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $7,900. If Allowance
    12·1 answer
  • Cork Oak Corporation purchased a heavy-duty truck (not considered a passenger automobile for purposes of the listed property and
    5·1 answer
  • The following information applies to the questions displayed below.]
    13·1 answer
  • The best way for a sophomore man to start-up
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!