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Kazeer [188]
4 years ago
15

You just inherited ?$12 comma 00012,000. while you plan to squander some of it? away, how much should you deposit in an account

earning 44?% interest per year if? you'd like to have ?$12 comma 00012,000 in the account in 88 ?years?
Business
1 answer:
soldier1979 [14.2K]4 years ago
6 0
44% annual interest sounds too good to be true, but we'll work with it.
Don't know exactly how much is <span>$12 comma 00012,000.
I will work with $1,000,000  (one million).  You can scale the results to the right amounts.

Future value = $1,000,000
i=0.44 
n=88
Present value=$1,000,000/(1+0.44)^88=$1.159*10^(-8), not even one cent!

However, if the interest rate is 4% for 88 years (more likely), then
Present value=F/(1.04^88)=1,000,000/1.04^88=$317,000.50.
That's the amount you need to put in today to get $1000000 in 88 years at 4% APR (compounded annually).</span>
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marishachu [46]

It should be noted that the product backlog item can be chosen as the scrum team with the highest velocity pulls product backlog items first.

<h3>What is product backlog?</h3>

A product backlog simply means a prioritized list of work that is gotten from the requirements available.

The product backlog item can be chosen as the scrum team with the highest velocity pulls product backlog items first.

Learn more about product backlog on:

brainly.com/question/4841869

7 0
3 years ago
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
Arada [10]

Answer and Explanation:

The journal entries are given below:

On Apr. 30

Bonds payable $124,000  

Loss on redemption of bonds( bal fig)   $18,228  

          Discount on Bonds payable($124,000 - $111,972) $12,028

          Cash ($124,000 × 1.05) 1,30,200

(Being redemption of bonds at 105 is recorded)  

On Jun. 30

Bonds payable $162,000

Premium on Bonds payable($174,960 - $162,000) $12,960  

          Gain on redemption of bonds ( bal fig) $14,580

          Cash($162,000 × .99) $160,380

(Being redemption of bonds at 98 is recorded)  

5 0
3 years ago
Hardy Inc. has two operating departments (1 and 2) and is considering renting a new machine to help automate the printing proces
gayaneshka [121]

Answer:

$6,900

Explanation:

When you use the incremental cost allocation method, you must rank cost activities and how they will be allocated. In this case, department 2 is the primary user, and therefore, rental costs must be allocated first to them. Rental costs will be allocated at a $25/hour rate.

Since department 1 is the next user, 100 hours will be allocated using the same rate as department 2, but the next 200 hours will be allocated at the lower $22/hour rate. Total rental cost allocation to department 1 = (100 x $25) + (200 x $22) = $2,500 + $4,400 = $6,900

5 0
3 years ago
The stock of Blue Water Tours, Inc. is expected to return 14.00 percent in a boom economy, 9.00 percent in a normal economy, and
Leno4ka [110]

Answer:

 Economy type             Expected return          Weightage    Weighted Average

Boom                                 14%                             10%           0.14*0.10= 0.014

Normal                               9%                             85%          0.85*0.090=.0765

Recession                          -8%                             5%           -0.08*0.05=-0.004

Add all the weigtage averages (0.014+0.0765-0.004)= 0.0865= 8.65%

The expected rate of return of the stock is 8.65%

Explanation:

In this question we need to find the weighted average returns, we know the expected return during a boom, normal and recession and we need to use the probabilities of boom, normal and recession as the weights, so the event which is most likely to happen will have the most weightage, this way we can find the expected return of the stock. There is a 85% chance that there will be a normal economy so the expected return in a normal economy will have the highest weightage.

3 0
3 years ago
What are bond ratings? do ratings remain the same during the entire life of the bond?
natulia [17]
Bonds are debt issued by governments or corporations as a way to raise capital.

The ratings remain the same. Bonds offer payments at a predetermined date and interest rate Investors therefore know exactly how much interest they will receive from an <span>issuer if they hold the bond until maturity.</span>
3 0
3 years ago
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