Answer:
b. $150,500
Explanation:
debit/capital = $185000/$610000
= 30%
target debt is 55%
debt/capital = 0.55
let the new debt be Y
Y/$610,000 = 0.55
Y = $335,500
excess debt need by company = $335500 - $185000
= $150500
Therefore, The debt that the company must add to achieve the target debt to capital ratio is $150500.
Answer:
Option (b) is correct.
Explanation:
Interest refers to the amount of money that a lender can earn on giving the loans to the borrowers. Borrower is a person who is liable to pay the interest on the borrowing amount.
Normally, a person is borrowing money or funds from the lender for making investment in a certain types of capital goods.
Interest rate refers to the rate at which lender lends its loanable funds to the borrowers.
Answer:
a. What would be the value of a savings account started with $700, earning 4 percent (compounded annually) after 10 years?
$700 * 1.480 = $1,036.00
b. Brenda Young desires to have $15,000 eight years from now for her daughter’s college fund. If she will earn 6 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation.
$15,000 * 0.627 = $9,405
c. What amount would you have if you deposited $1,800 a year for 30 years at 8 percent (compounded annually)?
$1,800 * 113.28 = $203,904
