1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
My name is Ann [436]
3 years ago
9

You are a freshman in college and are planning a trip to Europe when you graduate from college at the end of four years. You pla

n to save the following amounts annually, starting today: $650, $670, $670, and $830. If you can earn 5.70 percent annually, how much will you have at the end of four years?
Business
1 answer:
aksik [14]3 years ago
6 0

Answer:

We will have $3227 at the end of 4 years.

Explanation:

In this case we are saving money each year starting with $650 in the first year, $670 in the second. $670 in the third and $830 in the last year which means the $650 saved in the first year will earn interest for 4 years, $670 for 3 years , then $670 for 2 years and $830 for 1 year. Now we have to find out the ending amount of each payment and add them up.

Future Value = Present value*(1+Interest rate)^Number of years.

FV 1st year savings=650*(1.0570)^4=811

FV 2nd year savings= 670*(1.0570)^3=791

FV 3rd year savings = 670*(1.0570)^2=748

FV 4th year savings= 830*(1.0570)^1=877

Add them all up to find how much will we have at the end of four years

=$3227

You might be interested in
Suppose that a demand curve exhibits two points. Initially, at price P 0 P0 , the quantity demanded is Q 0 Q0 . When price chang
Vinvika [58]

Answer:

Price Elasticity of Demand= \frac{Percentage change in Demand}{Percentage change in Price}

At Price = P_{0}

Quantity demanded = Q_{0}

At Price = P_{1}

Quantity Demanded = Q_{1}

Now,

Percentage change in Demand = \frac{(Q_{1} - Q_{0})}{Q_{0}}

Percentage change in Price = \frac{(P_{1} - P_{0})}{P_{0}}

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{Q_{0}}}{\frac{(P_{1} - P_{0})}{P_{0}}}

Above formula if used will give the correct answer related to Price Elasticity of Demand.

Another variant of above formula is also being used on prominent basis.

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{(Q_{1} + Q_{0})} }{\frac{(P_{1} - P_{0})}{P_{1} + P_{0}} }

Utilization of any of the above Formula will give the ideal outcome in estimating Price elasticity of demand.

5 0
3 years ago
Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three ye
olya-2409 [2.1K]

Answer:

The answer is $ 257.70

Explanation:

PV= Σ  of  discounted payments

PV = 100(1.08^-1) + 100(1.08^-2) + 100(1.08^-2)= <u>$ 257.70</u>

7 0
3 years ago
What do economies of scale, the ownership of essential raw materials, and patents have in common?
allsm [11]

Answer:

They all are barriers to entry.

Explanation:

For an imperfectly competitive firm: the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold.

6 0
3 years ago
Which of the following has the greatest impact on your cash flow?
Deffense [45]

Answer:

 

Low-priced inventory with high turnover

Explanation:

GOT IT RIGHT IN QUIZ

6 0
3 years ago
Company A produces and sells 10,000 units of its product for $10 per unit. Variable costs are $4 per unit and fixed costs total
Anastaziya [24]

Answer:

Effect on income= $2,000 decrease

Explanation:

Giving the following information:

Selling price= $10 per unit.

Variable costs are $4 per unit

A move to a larger facility would increase rent expense by $8,000, and allow the company to meet its demand for an additional 1,000 units.

We need to calculate the effect in the income of moving to a larger facility.

Effect on income= total contribution margin increase - increase in fixed costs

Effect on income= 1,000*(10 - 4) - 8,000

Effect on income= $2,000 decrease

6 0
3 years ago
Other questions:
  • Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Ove
    9·1 answer
  • A group of fifty homeschooling parents in New Jersey get together and form a nonprofit membership organization for the purpose o
    8·1 answer
  • Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on
    9·1 answer
  • Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cas
    7·1 answer
  • Simon Corporation manufactures hydraulic valves. The product life of a valve is 4 years. Target average profit margin for Simon
    6·1 answer
  • If survey questions are standardized and close-ended, they can produce data that is statistically comparable.
    7·1 answer
  • In a free-market system, producers are most strongly driven by which of the
    15·1 answer
  • Part of having ______ means understanding that businesspeople from other countries may have very different attitudes about punct
    15·1 answer
  • Which of the following is the best description of reconciling a bank account? A. Comparing your own records to bank records B. A
    11·2 answers
  • Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to ser
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!