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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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Answer:

a. True

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3 years ago
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Answer:

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Explanation:

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Ending inventory cost= $5,556.92

3 0
2 years ago
Explain why the sale of used goods is not included in GDP.
Natali [406]

Used goods are not included in the current year GDP, as they were already included in the year that they were produced. GDP stands for Gross Domestic Product, and includes the values of goods and services created that year in that specific country alone.

8 0
3 years ago
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Answer:

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3 years ago
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