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Novay_Z [31]
2 years ago
15

Suppose you receive at the end of each year for the next three years. a. If the interest rate is ​, what is the present value of

these cash​ flows? b. What is the future value in three years of the present value you computed in ​(a​)? c. Suppose you deposit the cash flows in a bank account that pays interest per year. What is the balance in the account at the end of each of the next three years​ (after your deposit is​ made)? How does the final bank balance compare with your answer in ​(b​)?
Business
1 answer:
Furkat [3]2 years ago
5 0

Answer:

the question is missing the numbers, so I looked for a similar question:

Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? (Answer: $257) b. What is the future value in three years of the present value you computed in (a)? (Answer: $324.61) c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?

a) PV = $100/1.08 + $100/1.08² + $100/1.08³ = $257.71

b) FV = $257.71 x (1 + 8%)³ = $324.64

c) FV = ($100 x 1.08²) + ($100 x 1.08) + $100 = $324.64

it is exactly the same as the answer for (b)

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Blaney Clothing Store had a balance in the Accounts Receivable account of $437,500 at the beginning of the year and a balance of
Alexandra [31]

Answer:

Average Collection Period = 57.03

Explanation:

given data

Accounts Receivable beginning =  $437,500

Accounts Receivable ending =   $500,000

Net credit sales = $3,000,000

to find out

average collection period

solution

we get here first average account receivable that is express as

average account receivable = \frac{437,500+500,000}{2}

average account receivable = $468750

and we consider No of Days in a year is = 365

so Average Collection Period will be

Average Collection Period = \frac{468750}{3000000} × 365

Average Collection Period = 57.03

7 0
2 years ago
Bramble Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 76 units that cost $
Andru [333]

Answer:

$6516

Explanation:

LIFO means last in, first out. It means that it is the last purchased inventory that is sold first.

Total sales in the month was 362 units, this would be taken from the inventory purchased during the month

= 362 x $18 = $6,516

8 0
2 years ago
The average total cost curve and the marginal cost curve are related in that:
Serga [27]

Answer:

C. the MC curve passes through the minimum point of the ATC curve.

Explanation:

Marginal cost is the cost of producing additional unit, it is upward sloping as generally the cost that is additional as it tends to increase with increase in output.

Whereas Average Total Cost is a U shaped curve, it basically starts from a high point and then tends to decrease as the increase in number of units with constant fixed cost tends to decrease the average, but ultimately after it reaches its lowest point it tends to increase because now to produce units, there is extra cost required.

The Marginal Cost Curve touches the Average Total Cost curve at its lowest.

3 0
2 years ago
Damien McCoy has loaned money to his brother at an interest rate of 5.85 percent. He expects to receive $987, $1,012, $1,062, an
yKpoI14uk [10]

Answer:

The answer is: $3,657

Explanation:

To determine the amount of the loan we have to calculate the present value of the future payments discounting the interest rate of 5.85%.

PV loan =   <u>$987   </u>   +   <u>   $1,012   </u>    +     <u>  $1,062   </u>    +      <u>  $1,162   </u>

                  1.0585         1.0585^2            1.0585^3             1.0585^4

PV loan = $932.45 + 903.23 + 895.47 + 925.64

PV loan = $3,656.80

3 0
2 years ago
____________occurs when people within organizations use whatever influence they can to taint the facts to support their goals an
lapo4ka [179]

Answer:

The correct answer is letter "C": Politicking.

Explanation:

Politicking is the act of using personal references, mainly contacts who are public agents, so individuals can accomplish certain achievements such as obtaining special favors or being the priority in job selection processes. Influence peddling is considered illegal in the U.S. since it may be considered a form of corruption.

8 0
3 years ago
Read 2 more answers
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