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alisha [4.7K]
3 years ago
6

1. Assume you are planning to invest $200 each year for four years and will earn 8 percent per year. Determine the future value

of this annuity due problem if your first $200 is invested now.
Business
2 answers:
Virty [35]3 years ago
6 0

Answer:

The future value of the $200 invested yearly for 4 years at 8% is $973.32

Explanation:

The future value of an immediate annuity is given by the formula = (1+r)*[P*((1+r)^n-1)/r]

P=is the periodic payment of $200

r=rate of return=8 percent

n=number of years=4

By slotting the variables into the formula we have:

Fv=(1+0.08)*(200*((1+0.08)^4-1)/0.08)

FV=$973.32

Judging by the concept of time value of money, it is expected that the sum invested at interest would have been much more at maturity of the investment as $1 today should give a lot more than $1 in future.

kari74 [83]3 years ago
5 0

Answer:

$242.10

Explanation:P= C (1+(R/N)) ^T

P= Future Value  

C= Amount invested/ present value =$200

R= interest rate of invested amount = 8%

N= periods invested per year = 1

T= the number of years the amount is invested times by the number of periods invested per year. = 4years

Substitute the above values to the formulae P=C(1+(R/N))^T

Then you get :P=200(1+0.08)^4 thereafter you compute this on a calculator as value n=1 and T= 4*1= 4, then you get the below value of $242.097792 which is rounded off to the bottom answer of

P=$242.10

for the problem you solve for P given the other values which you substitute on the formula given above as it is mentioned that the interest is awarded annually. The number of periods n is 1 because it is annually compounded and the investment earns interest on interest because there is no withdrawal being don over the years in between being invested.

By using this formula you are showing that after a year if you invest $200 with an interest rate of 8% it will be $216 then this amount plus interest for year 1. $216 will be reinvested to earn an interest of 8% for the second year which the end vale will be $233.28. For the third year again the second years amount with its interest will be reinvested for 8% interest for the third year therefore calculated as $233.28*1.08= $251.94. then for the last 4th year we invest the third years amount at an interest rate of 8% which will be calculated as $251.9424*1.08=  $272.097792 then we round off to two decimal places for the final answer $272.10. That is how we got to the final answer.

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Answer:

a.

DR Raw Material Inventory                             $30,000

CR Accounts Payable                                                     $30,000

b.

DR Work in Process Inventory                          $33,900

CR Raw Material Inventory                                                $33,900

Working

= Job 114 + Job 115 + Job 116

= 16,500 + 12,400 + 5,000 = $33,900

c.

DR Work in Process                                            $‭7,430‬

CR Wages Payable                                                             $‭7,430‬

Working

= (150 * 15) + (220 * 17) + (80 * 18)

= $‭7,430‬

d.

DR Work in Process                                              $‭4,458‬

CR Manufacturing Overhead                                              $‭4,458‬

Working

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e.

DR Manufacturing Overhead                                     $4,765

CR Accounts Payable                                                              $4,765

f.

DR Finished Goods                                                    $‭23,520‬

CR Work in Process                                                                   $‭23,520‬

Job 115 costs = Beginning + Material + Labor + Overhead

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= $‭23,520‬

g.

DR Cost of Goods sold                                               $‭23,520‬

CR Finished Goods                                                                     $‭23,520‬

DR Accounts Receivable                                            $‭32,928‬

CR Cost of Goods sold                                                              $‭32,928‬

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Bailey is a new salesperson for a textbook publisher. She is compiling a list of professors who make textbook buying decisions a
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Prospecting is the process of identifying and correcting with people or Organisations that can become potential customers.

Qualifying is the process of identifying and confirming if a given lead is a potential and prospective customer.

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Answer:

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Controlling the money supply to achieve desired macroeconomic goals is called
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Answer:

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3 0
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