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nikitadnepr [17]
3 years ago
14

Congratulations, you are a millionaire. No, the Delaware Lottery office did not call. However, an officer from Bank of America h

as just informed you of an account that your grandmother set up years ago to be given to you on this date. The balance is exactly one million dollars. She made ten equal annual deposits into the account, with the final one occurring exactly 50 years ago in 1970. The account has earned 3.2% (APY) every year.A. How much money was in the account on this date in 1970?
B. How much was each of the ten annual payments that Grandma made (1961-1970)?
Business
1 answer:
nevsk [136]3 years ago
4 0

<u>Part A</u>

<u />

<u>Answer:</u>

$207,021

<u />

<u>Explanation:</u>

The balance on the account at the end of the year 2020 is $1,000,000

The question asks us to calculate the balance on the account at the end of the year 1970, which is exactly 50 years ago.

We would simply discount the $1,000,000 by using an interest rate of 3.2%

PV_{1970} = \frac{1000000}{(1 + 0.032)^{50} } = $207,021

<u>Part B</u>

<u></u>

<u>Answer:</u>

$17,892.88

<u>Explanation:</u>

We have the value at year 1970 which is $207,021

Now to calculate the annual payment (PMT) we would plug the following values in the financial calculator,

PV = 0

N = 10

FV =207021

I/Y = 3.2

PMT = ?

PMT = $17,892.88

https://www.calculator.net/finance-calculator.html?ctype=contributeamount&ctargetamountv=207021&cyearsv=10&cstartingprinciplev=0&cinterestratev=3.2&ccontributeamountv=1000&ciadditionat1=end&printit=0&x=102&y=11

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Answer:

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Explanation:

Although the stock owned by Carol and by Dave declines in value by $2,000, however Carol only has a realized and recognized loss of $2,000. The main factor in determining whether a disposition has taken place often whether an identifiable event has occurred. In the current scenario, Carol’s stock sale qualifies as a disposition and the Dave’s stock value decline does not qualify as a disposition and is simply a decline in value.

6 0
4 years ago
A company purchased new equipment for $80,000. The company paid cash for the equipment. Other costs associated with the equipmen
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$93,500

Explanation:

Given that,

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Transportation costs = $2,000

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Installation cost = $4,500

Cost of equipment:

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= $93,500

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7 0
4 years ago
Imagine you are a member of the Academy of Management (ACM) and on the steering committee to choose a location for the organizat
Lelechka [254]

Answer:

I will make of use operations management and the addition of marketing expert to the team will create synergy.

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Operations management involves adopting best business practices so as to achieve highest level of efficiency.It emphasizes analyzing different options available in a business where each option based on its peculiarities is accorded a rating and the option with the highest is chosen.

Specifically,operations management can be applied to choosing a location for the annual by following the steps below

All possible locations are identified

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The rating is computed using weighted average method

The location with highest rating is chosen for the meeting

On the other hand,strategy is achieving more by combining resources much more than it would been possible to achieve individually.The new marketing expert will be able to provide general marketing guidance to the existing members while they complement the expert with business-specific information.

7 0
3 years ago
Bernie Company sells buttons to fabric stores. Sales are expected to be $2,046,299 in January, $2,484,001 in February and $3,162
Igoryamba

Answer:

$1,701,371

Explanation:

Gross Profit = Sales - Cost of Sales

therefore,

In percentage this equation can be expressed according to the Company policy as :

<em>46 % = 146 % - 100%</em>

Cost of Sales = 100/146 x $2,484,001 = $1,701,371

Conclusion :

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3 0
3 years ago
In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Japanese adult non- institutionalized
abruzzese [7]

Answer:

Option (D) is correct.

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Labor force participation rate:

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= 0.0477 × 100

= 4.77% or 4.8%

4 0
3 years ago
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