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bagirrra123 [75]
4 years ago
15

You have decided to set up a fund for the education of your future child. What is the amount that will be accumulated in this si

nking fund at the end of 20 years if you deposit $1000 in the fund at each of the 20 years? Assume interest rate is 10%.
Business
1 answer:
Lyrx [107]4 years ago
6 0

Answer:

$  $47,275.00

Explanation:

<em>A sinking funds entails setting aside for investment an equal amount of money invested at a certain rate of interest over a definite period of time to accumulate at target future amount.</em>

<em>The accumulated amount could either be for the repayment of a loan amount or to finance the acquisition of  a capital asset.</em>

The total amount hat will accumulate in the fund at the end of 20 years will be determined using the formula below

FV = A × ( (1+r)^n - 1 )/r

A- 1000, n - 20, r = 10%

FV = 1,000 × ( (1.1^20) - 1 )/ 0.1

FV =1000   ×  47.2749

FV =$  47,275.00

FV =   $47,275.00

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A perfectly inelastic supply curve means that … a) a shift in demand will cause the quantity supplied to increase to infinity. b
Jet001 [13]

Answer: A perfectly inelastic supply curve means that<u><em>  the quantity supplied is completely fixed.</em></u>

Perfectly inelastic supply states that supply is completely fixed. Therefore it is not affected by the change in price level.

<u><em>Therefore, the correct option in this case is (e)</em></u>

5 0
4 years ago
Bond co. is using the target cost approach on a new product. information gathered so far reveals: expected annual sales 400,000
Bezzdna [24]

<span>The target selling price per unit is $0.77, According the accounting books I have search,using this solution: ($168,000 divided by 400,000) + $0.35= $0.77.Target costing is an approach in most company to know a product’s life cycle cost in which it is sufficient to develop specified functionality and quality.</span>

5 0
3 years ago
The price/sales multiple is typically only used for the valuation of firms without earnings. true false
sveta [45]

The main purpose of price/sales multiple ratio is typically only for the purpose of valuation of firms having no earnings till the date of valuation. Therefore, the given statement holds true.

<h3>What is the significance of Price/Sales ratio?</h3>

Price/Sales ratio can be referred to or considered as a ratio that is used to determine the total sales made by the company without earning any profits over their sales at a given price.

Investors use this ratio in order to valuate a firm based on the sales they have made in multiples, however without earnings, that can prove to derive good investment returns in the future.

Therefore, the aforementioned statement regarding price/sales ratio holds true.

Learn more about price/sales ratio here:

brainly.com/question/14856408

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3 0
2 years ago
Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present valu
sineoko [7]

Answer:

A. $19,034

Explanation:

The computation of the present value for 20 years cash flow is shown below:

For the First 10 years

Given that

Payment for first 10 years = $2,000

Discount rate = 11%

Now the present value is

= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10

= 11,778.46402 ..............(1)

For the Next 10 years

Given that

Payment for next 10 years = 3,500

Discount rate = 11%

Now the present value is

= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10

= 20,612.312

So, today present value is

= $20,612.312 ÷ 1.1110

= 7,259.339 ...........................(2)

Now

Total present value is

= $7,259.339 + $11,778.46402

= $19,034

3 0
3 years ago
You have an insurance policy with a $300 premium and a $500 deductible. How much should you expect to pay the insurance company
Aleksandr [31]
<h3>Hello there!</h3>

Your question asks how much you would be paying for insurance with the information given.

<h3>Answer: $300</h3>

The reason why your answer would be $300 is because that's the premium that you would be paying for. The "premium" means the amount you're paying for coverage. The premium could have different coverages that make up the price. The insurance would cover the liabilities that you might have.

People tend to get confused with deductibles. You don't pay monthly for deductibles. Deductibles are a payment that someone needs to pay before an insurance company starts paying for your needs that your coverage provides. For example, if I brake a bone, I would first pay the $500 deductible before the Insurance company starts covering my costs. This is the ensure that the insurance company gets some type of money before they start helping you.

<h3>I hope this helped you out!</h3>
8 0
3 years ago
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