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KiRa [710]
3 years ago
6

Starlite Industries will need $2.2 million 4.5 years from now to replace some equipment. Currently, the firm has some extra cash

and would like to establish a savings account for this purpose. The account pays 3.6 percent interest, compounded annually. How much money must the company deposit today to fully fund the equipment purchase?
a. $1,679,947.20
b. $1,412,308.18
c. $1,350,868.47
d. $1,876,306.49
e. $1,798,407.21
Business
1 answer:
kotegsom [21]3 years ago
6 0

Answer:

d. $1,876,306.49

Explanation:

As for the provided information,

Total funds needed at end of 4.5 years = $2.2 million

For this current savings are to be invested on a compound interest, where the rate of interest = 3.6%

Compounding period = Annually.

Therefore, future value factor of $1 after 4.5 years @ 3.6% = 1.1726997

The value of $2.2 million as on date = \frac{2.2\ million}{1.1726997}

= $1,876,306.49

Therefore, the correct answer is

Option d.

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money that is provided by the defendant to ensure his or her appearance in court is reffered to as----------------.
faust18 [17]

Answer:

Bail

Explanation:

Bail is just a measure of cash that is saved with the court to guarantee that you appear for all court procedures. You can post your bail in real money with the court, and you will at that point be discharged from authority.  

In the event that the litigant needs more money to post the whole bail, the court will acknowledge a bail security.  

The reason for bail is to guarantee that a respondent returns for future court appearances.

8 0
3 years ago
Suppose you hold a particular investment for 7 months. You calculate that your holding period return is 8.4 percent. What is you
Leni [432]

Answer:

The annualized return is 14.82%

Explanation:

The formula for annualized return is given as Annualized return = (1+ holding return)12/n - 1

Holding return is 8.4%

n is the holding period of 7 months

Annualized return =(1+0.084)^(12/7)-1

Annualized return =14.82%

It is wrong to simply calculate annualized return as 8,4%*12/7,which means one is taking the interest to annual interest by proportional method,as this gives 14.40%, in investment every basis point counts.

The difference between the two figures is 0.42% which could translate into millions depending on the amount invested as well as the duration of investment

6 0
3 years ago
Explain how a person who pursued a career in accounting could succeed as an entrepreneur.
rosijanka [135]

Answer:

own their own accounting business

4 0
3 years ago
In a job order cost accounting system, the journal entry to record the flow of direct materials into production consists of a
Usimov [2.4K]

Answer:

Debit : <em>Work In Process Account</em> and  Credit : <em>Raw Materials Account</em>

Explanation:

The Work In Process Account must be increased with the cost of raw materials being transferred to production from the Raw Materials Account.Whilst the Raw Materials Account must be decreased.

8 0
3 years ago
On January 1, 2008, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.’s voting common stock which represents a 45% i
Fittoniya [83]

Answer:

The balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 was $2,071,500

Explanation:

In order to calcuate the balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 we would have to calculate the following formula:

Net balance=Investment made+share of net income-dividend

Investment made = $1,920,000

share of net income= $670,000*45%= $301,500

dividend= $2.5*60,000= $150,000

Therefore, Net balance= $1,920,000 + $301,500 - $150,000

Net balance= $2,071,500

The balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 was $2,071,500

7 0
3 years ago
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