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PtichkaEL [24]
3 years ago
9

Compute the future value in year 9 of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 using a 10 per

cent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Business
1 answer:
Tom [10]3 years ago
5 0

Answer:

Future value is $ 6,944.52.

Calculation:

Year 9 of a $2,000 deposit in year 1

This can be calculated using compounding formula given below.

Year 9 value = present value (1+I%)^period

Year 9 value = 2,000 (1+10%)^8

Year 9 value = $ 4,287.18-A

$1,500 deposit at the end of year 3

This can also be calculated using compounding formula given below.

Year 9 value = present value (1+I%)^period

Year 9 value = 1,500 (1+10%)^6

Year 9 value = $ 2,657.34-B

Combined Value = A+B = $ 6,944.52

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On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which general journal entries woul
Akimi4 [234]

Answer:

January 1, 2016:

Dr Accumulated Depreciation account 12,000

Cr Cash account 12,000

Explanation:

The accumulated depreciation account is a contra asset account used to record all the incurred depreciation expense since the asset (or assets) was being used or put into service.

Since the repairs extended the life cycle of the asset, then its accumulated depreciation decreases.

5 0
3 years ago
To conduct an experiment, a movie theater increased movie ticket prices from $9 to $10 and measured the change in ticket sales.
marusya05 [52]

Answer:

RELATIVELY INELASTIC

more elastic

less

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

If demand is relatively inelastic and price increases, there would be little or no change in the quantity demanded and as a result, total revenue would increase

If demand were elastic and prices were increased, quantity demanded would fall more than the increase in price. As a result, total revenue would fall

In the long run, people have more time to search for suitable alternatives. Thus, demand tends to be more elastic in the long run

If the long run, price is increased, the total quantity demanded would fall and revenue would fall

5 0
2 years ago
Which statement is strongly a sustainable future to alleviate the risks posed by today's production and consumption patterns?
Crank

Answer: OPTION D

Explanation: Sustainable development means consuming natural resources in such a way that the needs of today gets fulfilled without hindering the needs of future generations .

A. Consuming more capital today will result in more depletion of natural resources that are limited in amount thus there would be no sustainable development.

B. This case study relates to sustainable development which depends on limited natural resources thus society does not have the option to invest it .

C. The case study relates to natural resources which are provided by the nature human resource plays no major role in sustainable development.

D. Only consuming natural resources in an efficient manner would result in sustainable development.

4 0
3 years ago
The concept of risk and return is subjective for different people, as well as for corporations.
Juli2301 [7.4K]

Answer:

Risk and Return

1. Joe is an average investor. His financial advisor gave him options of investing in stock A, with a σ of 12%, and stock B, with a σ of 9%. Both stocks have the same expected return of 16%. Joe can pick only one stock and decides to invest in stock B.

Good Financial Decision?

Yes

No

2. Marcie works for an educational technology firm that recently launched its employee stock option plan (ESOP). Marcie allocated all her investments in the ESOP.

Good Financial Decision?

Yes

No

3. rin wants to invest in a hedge fund that has had a very strong performance track record. The hedge fund has given its investors a return of over 60% for the past five years. Although Erin is tempted to put her money in the fund, she decides to conduct due diligence on the hedge fund’s assets, because she is aware that past performance is no guarantee of future results.

Good Financial Decision?

Yes

No

Explanation:

1. Joe's decision to invest in stock B is a good financial decision.  Since both investments have the same returns, the decision on which investment to take shifts to the standard deviation of the returns, which specifies the variability of the returns.  Invariably, the investment with less standard deviation should win the vote.  Therefore, Joe's decision is a good financial decision because investment in B has a standard deviation of 9% unlike A's 12%.

2. Putting all eggs in one market as Marcie had done by allocating all her investments in the ESOP is not a good financial decision, theoretically.  It is always best to spread the risks, though higher-yielding investments (returns) bear higher risks.

3. The decision of Erin to conduct due diligence on the hedge fund's assets, despite its past performance is a good financial decision.  Due diligence reveals some behind-the-scene information that are instrumental in making sound business decisions.  Who are the present managers of the fund?  What systems are in place in the entity to guarantee similar future performance, all things being equal?  What market's sentiments and information are available for consideration?  These questions, and many others can be answered through a due diligence.  Surely, "past performance is no guarantee of future results."

3 0
3 years ago
When people are led to think about their own _____, they are more attracted to a charismatic leader.
Naily [24]

When people are led to think about their own death they are more attracted to a charismatic leader.

The German sociologist Max Weber invented the idea of charismatic authority. It involves a kind of organisation or leadership where the leader's charisma confers authority. This contrasts with two other sorts of authority, namely traditional authority and legal authority. The three categories of authority that Max Weber identified are comprised of each of the three sorts.

The first time the word "charisma" came into use was in Saint Paul's writings to the fledgling Christian communities in the first century.

Learn more about Charismatic here

brainly.com/question/28099781

#SPJ4

5 0
1 year ago
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