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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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Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not i
Mice21 [21]

Answer:

2 years and 6 months

Explanation:

after 6months

     $1,000 x 10% = $100

     $1,000 + $100 = $1,100

after 1 year

     $1,100 x 10% = $110

     $1,100 + $110 = $1,210

after 1 year and 6 months

     $1,210 x 10% = $121

     $1,210 + $121 = $1,331

after 2 years

     $1,331 x 10% = $133.10

     $1,331 + $133.10 = $1,464.10

after 2 years and 6 months

     $1,464.10 x 10% = $146.41

     $1,464.10 + $146.41 = $1,610.51

4 0
3 years ago
Quinton wants you to calculate his biweekly paycheck. How much would he earn each pay period if he has an annual salary of $55,5
koban [17]
$2,134.62.

There are approximately 52 weeks in a given year, meaning that there are 52/2, or 26, biweekly pay periods. Therefore, we divide the annual salary of $55,500 by 26 biweekly pay periods to get $2,134.62 for the biweekly paycheck. 

The formula is the annual amount divided by the number of periods. Here, there are 26 periods of biweekly (once every two weeks) paychecks. 
6 0
3 years ago
You found your dream house. It will cost you $300000 and you will put down $30000 as a down payment. For the rest you get a 30-y
Andrews [41]

Answer:

$1,282.80

Explanation:

The PMT formula is used for this question. The attachment is shown below:

The NPER shows the time period

Given that,  

Present value = $300,000 - $30000 = $270,000

Future value = $0

Rate of interest = 4% ÷ 12 months = 0.33%

NPER = 30 years × 12 months = 360 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the answer is $1,282.80

5 0
3 years ago
Customers are likely to be more price sensitive when
Murljashka [212]
They dont see the end benefit

Not 100% on this one
4 0
3 years ago
Consider the following financial statement information for the Hop Corporation:
EastWind [94]

Answer: Operating cycle = 84.70 days

Cash cycle = 41 days

Explanation:

Beginning inventory = $11,100

Ending Inventory = $12,100

Average inventory = ($11100 + $12100)/2 = 11600

Average Accounts receivable = (6,100 + 6,400)/2 = 6250

Average Accounts payable = (8,300 + 8,700)/2 = 8500

Day sales in inventory = Average inventory × 365 / Cost of goods sold

= 11600 × 365 / 71000 = 59.63 days

Average collection period = Average receivable × 365 / Credit sales

= 6250 × 365 /91000 = 25.07 days

Average payment period = 43.70 days

Therefore, operating cycle will be:

= Day sales in inventory + Average collection period

= 59.63 days + 25.07 days

= 84.70 days

Cash cycle = Operating cycle - Average payment period

= 84.70 - 43.70

= 41 days

7 0
3 years ago
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