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kicyunya [14]
3 years ago
13

You plan to invest $600 in your savings account this year and then you intend to increase the amount that you invest by 3% each

year. If you invest in a savings account each that earns an effective annual interest rate of 7% how much money will you have in your account in 16 years?
Business
1 answer:
koban [17]3 years ago
7 0

Answer:

The correct answer is $20,211.84.

Explanation:

According to the scenario, the given data are as follows:

Payments (PMT) = $600

Interest rate = 7%

Growth rate = 3%

Time = 16 yeras

So, future value of growing annuity can be calculated by using following formula :

FV of growing annuity = Payment × ((1+ interest rate)^n - (1 + Growth rate)^n) / (Interest rate - Growth rate)

= 600 × ((1.07)^16 - 1.03^16) / (.07 - .03)

= 600 × ( 2.95216374857 - 1.6047064391 ) / (0.04)

= 600 × 33.6864

= $20,211.84

Hence, the correct answer is $20,211.84.

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asambeis [7]

Answer:

EPS of Plan I = $3.19

EPS of Plan II = $2.82

Explanation:

Under Plan I:

Plan I's Earning per share (EPS) = EBIT ÷ Number of shares = $575,000 ÷ 180,000 = $3.19

Under Plan II:

Interest = $2,600,000 × 8% = $208,000

Earning after Interest = EBIT - Interest = $575,000 - $208,000 = $367,000

Plan II's EPS = $367,000 ÷ 130,000 = $2.82

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3 years ago
If the U.S. dollar appreciates, an MNC's: a. exports denominated in foreign currencies will probably increase. b. U.S. sales wil
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Most likely when the U.S. dollar appreciates, the MNC's interest owed on foreign funds borrowed will probably increase.

MNC refers to Multinational corporation .

  • The Multinational corporation are known to borrow from foreign bodies in dollars.

  • Hence, when the dollar appreciates, the amount owed to the foreign bodies will increase consequently.

Therefore, the Option C is correct because the MNC's interest owed on foreign funds borrowed will probably increase when U.S. Dollars appreciates.

Read more about this here

<em>brainly.com/question/14124450</em>

4 0
3 years ago
Laura, a sales manager at Dexter Inc., claims that labor and management are rivals for most organizations. Brooke, the HR manage
Afina-wow [57]

Answer:

Dexter Inc.

The statement that best supports Brooke's perspective is:

Examples of cooperation between labor and management include employee involvement in decision making and self-managing teams.

Explanation:

When labor and management act as rivals or adversaries, it does not benefit their organizations.  They should find common grounds for cooperation.  Organizations should involve their employees in more decision-making.  Despite their incongruent goals, unions and management should find win-win solutions.  Paying employees a living wage does not impoverish the organization.  On the contrary, everybody is greatly enriched.

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All the payroll information needed to prepare payroll and tax reports is found on
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c

Explanation:

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Which of the following is a characteristic of a partnership? a.The partners have limited liability. b.The partnership is subject
Ulleksa [173]

Answer:

The correct answer is letter "C": The partnership has a limited life.

Explanation:

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