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Artist 52 [7]
3 years ago
9

You plan to go to Asia to visit friends in three years. The trip is expected to cost a total of $10,000 at that time. Your paren

ts have deposited $5,000 for you in a Certificate of Deposit paying 6% interest annually,maturing three years from now. Uncle Lee has agreed to pay for all remaining expenses. If you are going to put Uncle Lee's gift in an investment earning 10% over the next three years, how much must he deposit today, so you can visit your friends three years from today?
A. $3,039
B. $3,345
C. $5,801
D. $3,757
Business
1 answer:
zloy xaker [14]3 years ago
8 0

Answer:

A) $3,039

Explanation:

Total cost of trip= $10,000

Parent deposited $5,000 at 6% maturing 3 years.

Find the future value of parents deposit.

FV= PV×(1+i)^n

FV=future value

PV= present value= $5,000

I= interest rate=6%

n= no.of years = 3

FV= PV×(1+i)^n

= $5,000×(1+0.06)^3

=$5,000×(1.06)^3

= $5,000×1.191016

=$5,955.08

Balance=$10,000-$5,955.08

=$4,044.92

Uncle Lee agreed to pay for the remaining which is $4,044.92

Calculate uncle Lee's gift of 10% investment for 3 years

FV=PV×(1+i)^n

PV=FV/(1+i)^n

PV=$4,044.92/(1+0.10)^3

=$4,044.92/(1.10)^3

=$4,044.92/1.331

=$3,039.00826

Approximately $3,039

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Finley Corporation had income from continuing operations of $10,600,000 in 2014. During 2014, it disposed of its restaurant divi
gulaghasi [49]

Answer:

The answer is "$1.01"

Explanation:

Revenue from operations $10,600,000

Operations discontinued

Loss of discontinued operation

Division of restaurant (net of tax)

$315,000

Loss of diner disposal

division (net of tax)

189,000

504,000

$10,096,000 in net income

Start sharing income

Revenue from operations $1.06

Net of tax (0.05)* Discontinued transactions

$1.01 Net Revenue

3 0
2 years ago
Stones Corporation uses a predetermined overhead rate based on machine-hours to apply overhead to the manufacturing process. Las
likoan [24]

Answer: $5 per machine hour

Explanation:

Given the following :

Estimated manufacturing overhead cost = $550,000

Expected machine-hour to be incurred = 110,000

Actual manufacturing overhead = $575,000

Actual machine hour incurred = 120,000

The manufacturing overhead application rate:

Expected manufacturing overhead cost / Expected machine hour to be incurred

= $550,000 / 110,000 machine hour

= $5 per machine hour

8 0
3 years ago
Stephanie Archer has been saving her money to buy a BMW convertible. Archer has spent hours on the BMW Web site choosing the ext
valentinak56 [21]

Archer has been using BMW's marketing Web site. This is a <u>true</u> statement.

<u>Explanation</u>:

A website is a collection of web pages that provides content related to the search. Many businesses have separate website for featuring and selling their product.

In the above scenario, Stephanie was surfing marketing website of the BMW Company. She wishes to purchase a BMW convertible car. So she was saving money to purchase it. Stephanie spent many hours on the BMW website to study about the various options and models available in the car. She was also choosing the interior and exterior colors of the car.

6 0
3 years ago
he credit union will have $1.6 million available for investment during the coming year. State laws and credit union policies imp
natulia [17]

Here is the full question.

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue producing investments together with annual rates of return are as follows:

Type of Loan/Investment               Annual Rate of Return (%)

Automobile loans                                8

Furniture loans                                   10

Other secured loans                          11

Signature loans                                 12

Risk-free securities                            9

The credit union will have $1.6 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments.

Risk-free securities may not exceed 30% of the total funds available for investment.

Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).

Furniture loans plus other secured loans may not exceed the automobile loans.

Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.

How should the $1.6 million be allocated to each of the loan/investment alternatives to maximize total annual return? Round your answers to the nearest dollar.

Automobile Loans $  

Furniture Loans $  

Other Secured Loans $  

Signature Loans $  

Risk Free Loans $  

What is the projected total annual return? Round your answer to the nearest dollar.

$  

Answer:

Explanation:

Let the amount invested in:

Automobile loans be Xa,

Furniture Loans be Xf,

Other Secured Loans be Xo,

Signature loans be Xs,    &;

Risk-free loans be Xr

In reference  on the Annual returns rate given;

Total annual returns = 8%×Xa + 10%×Xf + 11%×Xo + 12%×Xs + 9%×Xr

The various constraints given can be written as follows:

Xa + Xf + Xo + Xs + Xr = 1,600,000-----Constraint for amount available for investment

Xr = 30%*1,600,000 ----- Constraint for maximum risk free investment

Xs = 10%*(Xa + Xf + Xo + Xs) -----  Constraint for maximum amount in signature loans

Xf + Xo = Xa ------- Constraint for Furniture and other secured loans

Xo + Xs = Xr  ------ Constraint for other secured loans and signature loans

Using the Excel Formula for solving this;

we have the following result.

Automobile Loans                     $ 504,000

Furniture Loans                         $ 136,000

Other Secured Loans               $ 368,000

Signature Loans                        $ 112,000

Risk-Free Loans                        $ 480,000

The projected total annual return = $ 151,040

The computation of the excel formula on how we arrived at those valid figures above is shown in the attached files below.

Thanks!

5 0
3 years ago
. A car accident occurs at an intersection outside of a physician’s office during normal office/business hours. Do the physician
lina2011 [118]
Search it up dudeeeee :)
3 0
3 years ago
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