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Klio2033 [76]
3 years ago
5

Spence wants to have $176,000 in 7 years. He plans to make regular savings contributions of $13,100 per year for 7 years, with t

he first of these regular savings contributions made in 1 year. He also expects to make a special savings contribution of X in 3 years. He expects to earn 17.18 percent per year. What is X, the amount of the special savings contribution that Spence will make in 3 years?
Business
1 answer:
Contact [7]3 years ago
5 0

Answer:

$11,098.94

Explanation:

first we must calculate the future value of the 7 year annuity:

FV of an annuity = p x {[(1 + r)ⁿ - 1] / r}

  • p = $13,100
  • r = 17.18%
  • n = 7

FV of an annuity = $13,100 x {(1.1718⁷ - 1) / 0.1718} = $13,100 x 11.8377 = $155,073.56

since he wants to have $176,000, he needs $20,926.44 more in 7 years (= $176,000 - $155,073.56)

X = FV / (1 + r)ⁿ

  • future value =
  • n = 4 years
  • r = 17.18%

X = $20,926.44 / 1.1718⁴ = $11,098.94

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Answer: Option (B) is correct.

Explanation:

The three limitations to balance sheets are as follow:  

1.) Assets are being noted or stored at a historical cost,  

2.) There is a thorough use of the estimates,

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Therefore from the given options, we can state that the key limitation of using a balance sheets under the constraints of financial analysis is that different items in a balance sheet are or may be evaluated differently.

8 0
3 years ago
Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $95,40
zalisa [80]

Answer:

$122,500

Explanation:

Calculation for the amount of the common fixed expense not traceable to the individual divisions

First step is to calculate Total segment margin

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Now let calculate the Common fixed expense

Common fixed expense = $217,900-$95,400

Common fixed expense $122,500

Therefore the amount of the common fixed expense not traceable to the individual divisions is $122,500

8 0
3 years ago
assume bell computer company operates in a perfectly competitive market producing 5,000 computers per day. at this output level,
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In a perfectly competitive market bell computers will cause profits to increase by producing one more.

A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behaviour in a market economy, despite perfect competition seldom occurring in actual markets.

One of the most efficiently operating markets is one with perfect competition, when a large number of buyers and suppliers cooperate perfectly. Sadly, it is a hypothetical event that does not occur in the real world. But in order to guarantee a fair price for all goods and services, markets should strive to be as similar to this type of market as feasible.

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6 0
1 year ago
The taxpayer’s marginal tax bracket is 25%. Which would the taxpayer prefer? a. $1.00 taxable income rather than $1.25 tax-exemp
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option (d) $1.40 taxable income rather than $1.00 tax-exempt income

Explanation:

The taxpayer would prefer option (d) $1.40 taxable income rather than $1.00 tax-exempt income

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Tax = $1.40 × 0.25 = $0.35

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The net income = Taxable income  - Tax = $1.40 - $0.35 = $1.05

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4 0
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