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charle [14.2K]
3 years ago
8

Rick is planning to invest the following amounts at 7 percent: $254 at the end of year 1, $412 at the end of year 2, and $1,230

at the end of year 3. How much money will he have saved at the end of year 3
Business
1 answer:
Fofino [41]3 years ago
6 0

Answer:

$1,961.65

Explanation:

The formula for finding future value :

FV = P (1+r)^n

P = Present value

R = interest rate

N = number of years

First step is to find the present value of the cash flows.

PV can be found using a financial calculator

Cash flow in year 1 = $254

Cash flow in year 2 = $412

Cash flow in year 3 = $1,230

I = 7%

Present value = $1,601.29

I would now input the value of p in the FV formula

$1,601.29 ( 1 + 0.07) ^3 = $1,961.65

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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Global market channels involve a firm producing goods in:______
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Answer:

A. Their home country and exporting them to other countries.

Explanation:

A global market channel generally explains the production of commodities by a certain or group of firms and goods by a home country and exporting them to other countries. This is seen generally in the production of phones, laptops, tv brands refrigerators and a whole lot of products amongst tier 1 or tier 2 countries and are been shipped to lowest their countries and other tier countries. This is seen to boost the economy and international trade friendship of either countries though the country at the recieving end is loosing per capital but at the end, we need each other to grow and live.

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Which of the following relationships between book value and cash received at sale results in a loss on the sale of a long-term d
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Answer:

a. Book value is greater than cash received.

Explanation:

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If an asset is sold for more than its book value, it is sold at a gain

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3 years ago
Susan asked mary to turn up the radio, so mary increased the volume from level 5 to level 7. mary could hear the difference but
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8 0
2 years ago
Daisy Inc., a manufacturing company, is planning to invest in newequipment. Thomas, the cost accounting manager, was in favor as
NeX [460]

Answer:

The correct answer is D. Credibility.

Explanation:

Thomas violated the credibility of his studies, because he omitted the error which caused a false expected result.

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7 0
3 years ago
What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000 at the end of Year 4 if the i
jarptica [38.1K]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Cash flow= $2,250

n= 4

i= 5%

Additional investment= $3,000

<u>First, we need to calculate the future value using the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {2,250*[(1.05^4) - 1]} / 0.05

FV= 9,697.78 + 3,000

FV= $12,697.78

<u>Now, the present value:</u>

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3 0
3 years ago
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