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Arisa [49]
3 years ago
6

You decide to save money for your daughter's education which requires a one time payment of $60,000 in 10 years and in pursuit o

f this you deposit a certain amount today in a bank which offers you a return of 6%. What is the amount that you need to deposit today
Business
1 answer:
Anarel [89]3 years ago
3 0

Answer:

The amount deposited today is $56,603.77

Explanation:

First of all, let us lay out the information clearly :

final amount to be realized = $60,000

return on investment = 6% = 0.06

Let the amount to be invested be P

6% of P + P = $60,000

0.06P + P = 60,000

1.06P = 60,000

∴ P = 60,000 ÷ 1.06 = 56,603.77 ( to 2 decimal places).

Therefore, the amount deposited today, that will yield a 6% return on investment to yield $60,000 is $56,603.77

You might be interested in
Sunland Corporation has retained earnings of $708,900 on January 1, 2020. Net income during 2020 was $1,663,000, and cash divide
andriy [413]

Answer:

Beginning RE                    708,900

prior period adjustment  <u>    89,470  </u>

adjusted beginning RE     798,370‬

net income                       1,663,000

cash dividends            <u>        (77,800)      </u>

ending RE                         2,383,570‬

Explanation:

The amend of the mistake is done to adjust the beginning retained earnings as it didn't occur in the current accounting cycle.

We have to added as it was posted as an expense something it wasnt Thus, our expense were overstated making a lower net income

then, we proceed normally by adding the net income and decreasing the cash dividends paid to arrive to ending RE

5 0
3 years ago
To join an upscale country​ club, an individual must first purchase a membership bond for​ $20,000. In​ addition, monthly member
OverLord2011 [107]

Answer: $61,697.90

Explanation:

GIVEN the following ;

Membership bond = $20,000

Monthly membership due= $250

Annual percentage rate(APR) = 6% = 0.06

monthly rate (r) = 0.06 ÷ 12 = 0.005

Payment per period(P) = $250

Using the formula for present value of ordinary annuity:

PRESENT VALUE (PV) =

P[(1 - ((1 + r)^(-n)) ÷ r]

$250 [ 1 - ((1 + 0.005)^-360))÷0.005]

$250 [( 1 - (1.005)^-360)÷ 0.005]

$250 × [0.83395807196 ÷ 0.005]

$250 × 166.791614392335

PV = $41,697.90

Membership bond + present value

$20,000 + $41,697.90

= $61,697.90

8 0
3 years ago
Consider two occupations (A and B) in which people have the same skills and abilities. When employed, workers in the two occupat
Crank

Answer: The hourly wage will be higher in occupation B.

Explanation:

From the information given in the question, workers in occupations A and B possess the same skills and abilities as work for the same number of hours. The difference between both occupations is that there is stability of employment for workers in occupation A while there are seasonal layoffs in occupation B.

Due to the seasonal changes in occupation B, the hourly wage will be higher in occupation B. Workers in occupation B need to be compensated in order to overcome the layoffs and uncertainties.

8 0
3 years ago
Nathan bought 200 shares of stock at $40 per share ($8,000 total). He paid $5,000 in cash and borrowed $3,000 from the brokerage
yan [13]

If Nathan sells now, after paying a commission of $160 and margin account interest of $90, he will lose <u>$650</u>.

<h3>What is buying on margin?</h3>

Buying on margin is a situation when an investor buys an asset by <u>borrowing the balance </u>from the brokerage firm.

With buying on margin, the investor pays part of the investment cost while the remaining is met by the broker.

<h3>Data and Calculations:</h3>

Cost of 200 shares at $40 per share = $8,000

Investor's cash = $5,000

Margin purchase = $3,000

Interest rate = 6%

Interest amount = $90 ($3,000 x 6% x 1/2)

Commission = $160

Total amount spent = $8,250 ($8,000 + $90 + $160)

Total amount realized from sale = $7,600 ($38 x 200)

Loss from sale = $650 ($7,600 - $8,250)

Thus, if Nathan sells now, after paying a commission of $160 and margin account interest of $90, he will lose <u>$650</u>.

Learn more about margin accounts at brainly.com/question/17328883

#SPJ1

5 0
1 year ago
A leading global vendor of computer software; hardware for computer, mobile and gaming systems; and cloud services. Its corporat
xeze [42]

Answer:

Microsoft

Explanation:

4 0
2 years ago
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