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nadya68 [22]
4 years ago
7

Today, you invest a lump sum amount in an equity fund that provides an 8% annual return. You would like to have $11,700 in 6 yea

rs to help with a down payment for a home. How much do you need to deposit today to reach your $11,700 goal? Do not round intermediate calculations. Round your answer to the nearest cent.
Business
1 answer:
V125BC [204]4 years ago
8 0

Answer:

$7,372.99

Explanation:

Discounting is the method used to determine the present worth of a future amount which compounding is used to determine the future worth of a present amount. The relationship between both is such that;

Fv = Pv(1 + r)^n

where

Fv = future amount

Pv = present amount

r = interest rate and

n = time

The future amount = $11,700

time = 6 years

rate = 8%

$11,700 = Pv(1 + 0.08)^6

Pv = $11,700(1 + 0.08)^-6

Pv = $7,372.99

You need to deposit $7,372.99 today to reach your $11,700 goal in 6 years.

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Answer:

458,000

Explanation:

Beginning inventory = 1,200 units

Budgeted sales = 456,000 units

Desired ending inventory = 3,200 units

Now,

Production Required is given as:

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on substituting the respective values, we get

Production Required = 456,000 + 3,200 - 1,200

or

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