Tara invests $2,500 today and another $1,500 a year from now. Her investments starting year 2 keeps increasing by $100 every yea
r for the next 10 years from today. She stops investing from year 11 until year 20. If she earns a rate of return of 7% on her investments, determine future worth of her investments 20 years from now
1 answer:
Answer:
$61,175
Explanation:
Base on the scenario been described in the question, we expected to solve for the future worth
The table of the cash flow is shows in the picture
We can find that by calculating the Future worth
Future Worth = {2,500 + 1,500(P/A 7%,10) 100 + (P/G 7%,10) } [F/P 7%, 20]
Future worth = { 2,500 + 1500(7.024) + 100(27.716)}
Future worth = $61,175
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Answer:
correct option is a. $1,700 over head applied
Explanation:
given data
overhead = $700,000
machine hours = 200,000
direct labor hours = 35,000
Feb, direct labor hours = 5,000
Feb, machine hours = 10,000
Feb, actual overhead = $98,300
solution
we know overhead rate that is
overhead rate =
overhead rate =
overhead rate = $20 per hours
and in Feb for 5000 direct labor hour
overhead = 5000 × $20 = $100,000
so
over head applied = $100,000 - $98300
over head applied = $1700
so correct option is a. $1,700 over head applied