Money is a "medium of exchange," meaning

Account A pays 13.8% interest per year. Account B pays 13.5% interest per year, compounded monthly. Account C pays 13% interest

alexandr1967 [171]

Answer:

1. Future value (FV) = $4,717

2. Future value (FV) = $5,189

3. Future value (FV) = $5,237

Explanation:

Requirement 1

Assume that the present value of the investment is $1,000.

We know, Compounding yearly,

FV = PV*(1 + i)^n

Given,

Present value (PV) = $1,000

Interest rate, i = 13.8% = 0.138

number of periods, n = 12 years

We have to calculate the future value of the investment.

Therefore,

FV = $1,000 × $(1 + 0.138)^{12}$

or, FV = $1,000 × $1.138^{12}$

or, FV = $1,000 × 4.7174

Therefore, Future value (FV) = $4,717

Requirement 2

Again, Assume that the present value of the investment is $1,000.

We know, Compounding monthly,

FV = PV × $(1 + \frac{i}{m})^{m*n}$

Given,

Present value (PV) = $1,000

Interest rate, i = 13.8% = 0.138

number of periods, n = 12 years

compounding period (monthly), m = 12

We have to calculate the future value of the investment.

Therefore,

FV = $1,000 × $(1 + \frac{0.138}{12})^{12*12}$

or, FV = $1,000 × $(1 + 0.0115)^{144}$

or, FV = $1,000 × $1.0115^{144}$

or, FV = $1,000 × 5.1890

Therefore, Future value (FV) = $5,189

Requirement 3

Again, Assume that the present value of the investment is $1,000.

We know, Compounding daily,

FV = PV × $(1 + \frac{i}{m})^{m*n}$

Given,

Present value (PV) = $1,000

Interest rate, i = 13.8% = 0.138

number of periods, n = 12 years

compounding period (daily), m = 365

We have to calculate the future value of the investment.

Therefore,

FV = $1,000 × $(1 + \frac{0.138}{365})^{365*12}$

or, FV = $1,000 × $(1 + 0.000378)^{4,380}$

or, FV = $1,000 × $1.000378^{4380}$

or, FV = $1,000 × 5.2367

Therefore, Future value (FV) = $5,237

4 0

4 years ago

Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company

zaharov [31]

Answer:

d. 4 years.

Explanation:

The payback period is the length of time that it takes for the future cash flows to equal the amount invested in a project. It takes 4 years to get $800,000 for Natal Technologies product.

5 0

3 years ago

In the weeks leading up to an election the media are filled with campaign ads, some of which are emotionally charged and some of

Mrrafil [7]

<span>Unreliable. Campaigners don't necessarily show their true colors during campaigns. They like to put on a show to get attention. They also make claims that seem like they care about the good of the nation, but that could actually hurt the economy or the country as a whole. But they could also be in favor of policies that are good for the country/economy, but could anger people because those policies appear to hurt a group/groups of people.</span>

7 0

4 years ago

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the present and proposed produ

AleksAgata [21]

Answer:

Hello some parts of your question is missing attached below is the missing part

Answer : value added times : 30 minutes , 30 minutes

non-value added times: 1210 minutes, 130 minutes

Total lead times : 1240 minutes, 160 minutes

value added time as a ratio: 2.4%, 18.8%

Explanation:

Given data:

production batch sizes = 40 units

process step 1 = 6 minutes

process step 2 = 10 minutes

process step 3 = 6 minutes

process step 4 = 8 minutes

Determining : The value added, non-value added , total lead times and value added ratio under the present and proposed production approaches

UNDER PRESENT PRODUCTION APPROACH

Th value added time:

= summation of all process times = (6+10+6+8) = 30 minutes

Non-value added time:

= Value added time *(Batch size -1) + move time between each step

= 30*39+8*5

= 1170 +40 = 1210 minutes

total lead time :

= value added time + non-value added time

= 30 + 1210 = 1240 minutes

value added time as a percentage/ratio

(value added time / total lead time) * 100

= 30 / 1240 * 100 = 2.4%

UNDER PROPOSED PRODUCTION APPROACH

value added time :

= summation of all process times = (6+10+6+8) = 30 minutes

Non-value added time :

= Value added time *(Batch size -1) + time between each step

= 30*4+2*5 = 120 + 10 = 130 mins

total lead time :

= value added time + non-value added time = 30 +130 = 160 mins

value added time as a percentage/ratio:

(value added time / total lead time ) * 100

= (30 / 160) * 100 = 18.8%

3 0

4 years ago

Ements

Norma-Jean [14]

Answer:

agree vvvvvvvvvvvvvvvvv

6 0

2 years ago