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Alex_Xolod [135]
3 years ago
14

Williamsburg Nursing Home is investing in a restricted fund for a new assisted-living home that will cost $6 million. How much m

oney do they need to invest each year to have $6 million in fifteen years? If the expected rate of return on the investment is 10%, and the hospital invests at the end of each year?
Business
1 answer:
Digiron [165]3 years ago
3 0

Answer:

Annual deposit= $188,842.66

Explanation:

Giving the following information:

Williamsburg Nursing Home is investing in a restricted fund for a new assisted-living home that will cost $6 million.

n= 15 years

i= 10%

We need to use the following formula:

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

A= annual deposit

Isolating A:

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

A= (6,000,000*0.10)/[(1.10^15)-1]

A= $188,842.66

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Sergio039 [100]

Answer:

Option B

Explanation:

Both Nadia and Samantha have insured their cars and willing to pay $100 over the expected loss for insurance. If the car is stolen the company would pay expected loss and would earn nothing and if the car is not stolen the company would not be liable for any loss and would earn $200, Therefore the company would earn between $0 and $200.

3 0
3 years ago
ssume that interest rate parity exists. You expect that the one-year nominal interest rate in the U.S. is 7%, while the one-year
EleoNora [17]

Answer:

The answer is A. $5,784,000

Explanation:

[(1.08)/(1.11)] -1 = -3.6%

Thus one year forward rate is 0.60*[1 +(0.036)] = $5784

$5784 * 10 000 000= <u>$5,784,000</u>

8 0
3 years ago
The following is information for Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending in
Vlad1618 [11]

If  Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending inventory 97,400 87,750 92,500 compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2:

a) Inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2

Inventory turnover =$426,650/($92,500+$87,750)/2

Inventory turnover=$426,650/$90,125

Inventory turnover=4.7 times

Days' sales in inventory=$87,750/$ 426,650×365 days

Days' sales in inventory=$87,750

Days' sales in inventory=75.07 days

b) Inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3

Inventory turnover=$643,825 /($87,750+$97,400)/2

Inventory turnover=$643,825/$92,575

Inventory turnover=6.95 times

 

Days' sales in inventory=$97,400/$643,825×365 days

Days' sales in inventory=55.22 days

Learn more here:

brainly.com/question/15520316

4 0
2 years ago
Newdex has net income of $3,000,000 (INCLUDING the effect of expected out-of-pocket costs) and 1,000,000 shares outstanding. It
kkurt [141]

Answer:

$416,667

Explanation:

Current EPS = $3,000,000 / 1,000,000

Current EPS = $3

Net Proceeds per share = $40 * 90%

Net Proceeds per share = $36  

New Number of Shares = $5,000,000 / $36

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Total Number of Shares Outstanding after the new issue = 1138888.88 shares

Diluted EPS = $3,000,000 / 1138888.88

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Amount of Dilution in EPS = $3 - $2.634

Amount of Dilution in EPS = $0.3658

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6 0
3 years ago
How could the federal reserve encourage banks to lend out more of their reserves?
natta225 [31]
Had to look for the options and here is my answer.
How the Federal Reserve could persuade banks to lend out more of their reserves is by REDUCING THE DISCOUNT RATE. The Federal Reserve is known to be the central bank of the United States which regulates the financial activities of the nation and how this affects their economy. Hope this helps.
5 0
3 years ago
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