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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

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Answer:

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Bobbi and Stuart are partners. The partnership capital of Bobbi is $41,400 and that of Stuart is $74,700. Bobbi sells his intere
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Answer:

c. John's capital account for $41,400

Explanation:

Based on this information it can be said that in this scenario the journal entry to record the admission of John as a new partner would include a credit to John's capital account for $41,400. This is mainly because even though Bobbi sold his interest for $63,900 his actual interest capital in the partnership was that of $41,400 .... meaning that John now holds a partnership capital of $41,400 and the Bobbi profited $22,500

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The original cost of an inventory item is below both replacement cost and net realizable value. The net realizable value less no
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Answer:

D) Original cost.

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When the company uses the lower of cost or market method, it should assign value to its inventory by calculating the middle figure between replacement cost or net realizable value, and net realizable value - normal profit.

In this case, the market value must be either the replacement cost or the net realizable value, but both values are the highest. Since the original cost is below the market value, but above the net realizable value - normal profit, the inventory must be valued at the original cost.

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An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 h
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Answer:

a. Gross pay = $1,320

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Explanation:

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