to earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest
1 answer:
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Answer:
Net present value of $168,953.93
Explanation:
We will calculate the present value of the cash flow at the investor's rate of return.
First we have the annuity of 20,000 during 5 years
C = 20,000
time = 5
rate = 10
PV = 75,815.73539
Then we calculate the present value of the final payment of 150,000
Nominal = 150,000
rate = 0.1
time = 5
PV = 93,138.198459
<u>We add both together: </u>And get the present value
75,815.73 + 93,138.20 = 168,953.93
Answer:
$4,812,500 Dollar sales to achieve EBT of 1,125,000
Explanation:
The goal would be to calcualte the break even formula adding in the dividend the target profit:
Where:
Where:
So first step
$450 Sales - $270 Variable Cost = $180 Contribution Margin
Second:
180/450 = 40% CM ratio
Finally: