What are some Excel functions that a financial planner might use or need?

If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth i

aksik [14]

To find the compound interest of an investment you have to use this formula, A = P(1 + r/n)^nt, where A is the total amount you have after the investment period, P is the amount you invest or the amount you put in, r is the rate of the of the compound interest in this case 10%, n is the amount of time the interest will be compounded for example, 4 months a year(quarterly) or 6 months a year(semi annually), and t is the amount of time you invest in years. So in this case you are going to substitute everything in the formula with their given value. So P = $700, r = 10%, n = 21 (because it is the number of months we invest for), and t = 2 years (because 21 months fit perfectly in 2 years, and t must always be in years). The resulting formula will be A = $700(1 + 0.1/21)^(21 x 2), which will give you an answer of $855 rounded to the nearest dollar.

8 0

3 years ago

One of the principles of hierarchy is a clear ______ chain of command.

Genrish500 [490]

Answer: One of the principles of hierarchy is a clear vertical chain of command.

Hope this helps!

4 0

2 years ago

A corporation has a $500,000 beginning balance in retained earnings. its net income for the year was $200,000. sales revenue amo

natta225 [31]

Given:
$500,000 beg. balance in retained earnings.
$200,000 net income for the year
$1,000,000 sales revenue
$100,000 dividends declared and paid by year-end

Retained earning is the amount left from net income after dividends have been paid. In the given data, sales revenue is not included in the Retained earnings report. It is reflected in the Income statement which generates the Net income.

Retained Earnings, beg. balance 500,000
Add: Net Income for the year 200,000
Total 700,000
Less: Dividends declared and paid this year (100,000)
Retained Earnings, end balance 600,000

6 0

3 years ago

You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the dis

larisa [96]

Answer:

NPV Project A = - $825.31

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

NPV Project A = - $6804

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

Explanation:

One of the methods to evaluate a project is to determine the NPV or Net Present Value from the project. If a project provides a positive NPV after discounting the cash flows from the project at a set discount rate, the project should be accepted. If the project gives a negative NPV, the project should be discarded.

The NPV is calculated as follows,

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost

Where,

CF1, CF2, ... represents the cash flows in year 1 and year 2 and so on
r is the discount rate

At 8.5% discount rate

NPV Project A = 31000/(1+0.085) + 31000/(1+0.085)^2 + 31000/(1+0.085)^3 - 80000

NPV Project A = - $825.31

NPV Project B = 110000 / (1+0.085)^3 - 80000

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

At 13% discount rate

NPV Project A = 31000/(1+0.13) + 31000/(1+0.13)^2 + 31000/(1+0.13)^3 - 80000

NPV Project A = - $6804

NPV Project B = 110000 / (1+0.13)^3 - 80000

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

4 0

3 years ago

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the pro

HACTEHA [7]

Answer:

Units to be accounted for:

Beg WIP 300 units

started 2700 units

Total 3,000 units

Equivalent units

physical materials conversion

tranferred 2,850 2,850 2,850

ending 150 150 (20%) 30

total 3,000 2,700 2,880

Cost to be accounted for:

materials conversion

beg WIP 0 576

incurred 0 10,800

Total 0 11,376

Equivalent unis cost

materials zero

conversion: $11,376 / 2,880 = $3.95

Cost assigned for:

Transferred units

2,850 units x 3.95 = 11,257.5

ending work in process units

30 units x 3.95 = 118.5

Total cost to be assigned for 11,376

Notice: Total cost to be asisgned for and assigned cost are the same.

Explanation:

1) We count the physical units

2) Then, we solve for the equivalent units which, under weighted average are:

transferred units + completion on ending work in process.

3) Now, we solve for equivalent unit cost:

for materials, this is zero are there is no cost associaed with.

4) Finally, we made the cost assignment which, should match the beginning WP cost and the incurred cost during the period.

8 0

3 years ago