1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexxandr [17]
3 years ago
10

On January 1, 2020, ABC Company decided to begin accumulating a fund for asset replacement five years later. The company plans t

o make five annual deposits of $60,000 at 9% each January 1 beginning in 2020. What will be the balance in the fund, on January 1, 2025 (one year after the last deposit)?
Business
1 answer:
posledela3 years ago
7 0

Answer:

$391,400

Explanation:

we can use the future value formula for an annuity due:

future value of an annuity due = (1 + r) x payment x {[(1 + r)ⁿ - 1] / r}

  • payment = $60,000
  • r = 9%
  • n = 5

FV = (1 + 9%) x $60,000 x {[(1 + 9%)⁵ - 1] / 9%} = 1.09 x $60,000 x {[1.09⁵ - 1] / 9%} = $65,400 x 5.9847 = $391,400

In an annuity due, the first payment is done immediately and not at the end of the period like a normal annuity.

You might be interested in
A(n) _____ is central to individuals and organizations of all sizes and ensures that information can be shared across all busine
Ann [662]

An enterprise system is central to individuals and organizations of all sizes and ensures that information can be shared across all business functions and all levels of management to support the running and managing of a business. And large-scale application software packages that support business processes, information flows, reporting, and data analytics in complex organizations.


3 0
3 years ago
Individual policies are generally stand-alone policies, but may be written with other types of policies as a(n): a. Endorsement
Romashka-Z-Leto [24]

Answer:

The correct answer is letter "B": Rider.

Explanation:

A rider policy adds or restricts terms to an already existing insurance policy. This is typically used when the policyholder includes in the original coverage some others such as life, home, and auto insurance. Rider policies are typically low priced and in most cases are offered by the same insurance companies at a special discount to promote consumption among their insured.

7 0
3 years ago
Two people apply for loans of the same amount. Due to differences in their credit scores, their payments differ by $72 per month
Vlada [557]

Answer:

$2592

Explanation:

Let the amount of loan applied for by both person be $x and $y respectively. If their loan differs by $72 each month, the second person would have applied for $(x+72) each month.

Amount applied by first person will be $x at the end of first month

Amount applied by second person will be $(x+72) at the end of first month

At the end of 36 months, the amount applied for by the first man will be $36x

At the end of 36 months, the amount applied for by the second man will be $36(x+72)

First person 'x' =$36x

Second person 'y' = $36(x+72)

If x pays $36x

y will pay $(36x+2592)

Their difference will become

$36x+$2592-$36x

= $2592

The person with the lower credit score will pay $2592 at the end of the 36-month loan

5 0
4 years ago
A company borrowed cash from the bank by signing a 6-year, 6% installment note. The present value of an annulty factor at 6% for
drek231 [11]

Answer:

A

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 6 = $75,200

I = 6%

PV = $369,780.96.

To find the PV using a financial calculator:

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  

6 0
3 years ago
Compute conversion costs given the following data: Direct Materials, $386,100; Direct Labor, $200,100; Factory Overhead, $220,30
zloy xaker [14]

Answer:

Option (A) is correct.

Explanation:

Given that,

Direct Materials = $386,100

Direct Labor = $200,100  

Factory Overhead = $220,300 and,

Selling Expenses = $39,500

Conversion costs = Direct labor + factory overhead

                              = $200,100 + $220,300

                              = $420,400

Therefore, the conversion costs for the company is $420,400.

8 0
4 years ago
Other questions:
  • Equipment costing $276000 was destroyed when it caught on fire. At the date of the fire, the accumulated depreciation on the equ
    6·1 answer
  • On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note,
    5·1 answer
  • 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
    13·1 answer
  • Select the correct answer from each drop-down menu.
    9·1 answer
  • Gunderman Corporation has two divisions: the Alpha Division and the Charlie Division. The Alpha Division has sales of $260,000,
    8·1 answer
  • Rad, a manufacturer of luxury watches, charges a higher price for its products than its competitors. despite the high prices, th
    13·1 answer
  • I’m really bored so if any one have problem with homework’s, come to me
    14·2 answers
  • Question Mode Multiple Select Question Select all that apply Select the items that characterize organizations. (Select all that
    11·1 answer
  • The relationship between the number of years for the mortgage / home loan and the monthly payment amount.
    6·1 answer
  • a taxpayer may choose to accept a reduced market rate of return on an investment to take advantage of a tax preference associate
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!