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solniwko [45]
4 years ago
8

Racing Motors wants to save $825,000 to buy some new equipment three years from now. The plan is to set aside an equal amount of

money on the first day of each quarter starting today. How much does the company need to save each quarter to achieve its goal if it can earn 4.45 percent on its savings
Business
1 answer:
Salsk061 [2.6K]4 years ago
8 0

Answer:

It will have to save 51,224.05 to reach their financial goal of 825,000 in thre years at the given market rate

Explanation:

We have to solve for the annuity-due future value installment

FV \div \frac{(1+r)^{time} -1}{rate}(1+r) = C\\

FV $825,000.0000

time 12 (4 quartes x 3 years )

rate 0.0445

825000 \div \frac{1-(1+0.0445)^{-12} }{0.0445} = C\\

C  $ 51,224.043

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A bank has agreed to lend you $53,000 for a home loan. The loan will be fully amortized over 39 years at 13.50%, with .44 points
Natali [406]

Answer:

the actuarial rate is $599.44

Explanation:

The computation of the actuarial rate is given below:

= $53000 × 1.13% × (1+1.13%)^468) ÷ ((1 + 1.13%)^468 - 1)

= $599.44

The 1.13% comes from

= 13.50% ÷ 12

= 1.13%

And, the 468 comes from

= 39 × 12

= 468

Therefore the actuarial rate is $599.44

The same is to be relevant

8 0
3 years ago
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land
Mrrafil [7]

Answer:

$212,000

Explanation:

The cost principle is an accounting concept fro recording asset in the books of accounts. According to this principle, assets should be recorded at the actual price paid for the item.  The phrase 'cost principle' is also referred to as the historical cost principle.

In the case of the Donnar company, the amount to be recorded should be $212,000. This is the agreed price. It is the actual amount that the Donner Company will pay for the land. The cost recorded is expected to stay constant unless amended through amortization, depreciation, or appreciation in value.

5 0
4 years ago
The Burgers 4 Upper U Restaurant Group supplies its franchise restaurants with many​ pre-manufactured ingredients​ (such as bags
Brut [27]

Answer:

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<u>variable overhead: </u>5,189,000 - 2,486,000 = 2,703,000

this overhead is generated from machine hours thus we divide the expected overhead over the machine hours  to know the rate.

2,703,000 / 226,000 = 11.96017699 = $ 11.96 variable overhead rate

7 0
3 years ago
According to the Full Disclosure Principle, all thins that can materially affect the financial status of the firm must be disclo
Olenka [21]

Answer: True

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These disclosures can be made on press releases, supplementary reports and other such communications etc.

Hence, from the above we can conclude that the given statement is true.

8 0
3 years ago
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Art [367]

Answer:

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Explanation:

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3 0
3 years ago
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