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sleet_krkn [62]
3 years ago
6

Jim Roznowski wants to invest some money now to buy a new tractor in the future. If he wants to have ​$350 comma 000 available i

n 6 ​years, how much does he need to invest now in a CD paying 4.35​% interest compounded monthly​?
Business
1 answer:
lidiya [134]3 years ago
8 0

Answer:

$269,725.58

Explanation:

The computation of the invested now amount i.e present value is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

where,

Future value is $350,000

Interest rate = 4.35% ÷ 12 months = 0.3625%

Number of years = 6 × 12 months = 72 months

So, the present value is

$350,000 = Present value × (1 + 0.3625%)^72

$350,000 = Present value × 1.2976151473

So, the present value is $269,725.58

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The slope of the security market line represents the:__________a) risk premium on an individual asset. b) beta coefficient. c) r
igomit [66]

Answer:

e) market risk premium.

Explanation:

The slope of the security market line represents the market risk premium.

5 0
3 years ago
1. Suppose that Intel is considering building a new chip-making factory. Assuming that Intel needs to borrow money in the bond m
marin [14]

Answer:

a. True

An increase in interest rate on bond will affect intel's decision, as the bonds, market provides firms an opportunity to borrow money.

If Intel has enough of its own funds to build the new factory without borrowing, an increase in interest rates still affects Intel’s decision about whether to build the factory

a. True

Even if Intel can raise it's own resources to build the new factory without borrowing, the increase in the rates of bond will still affects it's decision, as the increase in the rates of bond will make the market more attractive.

Explanation:

a. True

An increase in interest rate on bond will affect intel's decision, as the bonds, market provides firms an opportunity to borrow money.

If Intel has enough of its own funds to build the new factory without borrowing, an increase in interest rates still affects Intel’s decision about whether to build the factory

a. True

Even if Intel can raise it's own resources to build the new factory without borrowing, the increase in the rates of bond will still affects it's decision, as the increase in the rates of bond will make the market more attractive.

8 0
3 years ago
Employers are not bound by the flsa regarding employees classified as ________ employees.
spayn [35]
Hello!
.
The answer to your question is "exempt".
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Employers are not bound by the FLSA regarding employees classified as exempt employees.
7 0
3 years ago
Required:
Kisachek [45]

Answer:

1- Cash (Dr.) $ 47,000

Computer (Dr.) $ 40,000

Common Stock (Cr.) $ 87,000

2- Rent Expense (Dr.) $2,200

Cash (Cr.) $2,200

3- Office Supplies (Dr.) $2,000

Cash (Cr.) $2,000

10- Prepaid Insurance (Dr.) $2,200

Cash (Cr.) $2,200

14- Salaries Payable (Dr.) $14,000

Cash (Cr.) $14,000

24- Cash (Dr.) $14,000

Commission from Airline (Cr.) $14,000

28- Salaries Payable (Dr.) $1,300

Cash (Cr.) $1,300

29- Computer Repair Expense (Dr.) $300

Cash (Cr.) $300

30- Telephone Bill Expense (Dr.) $1,100

Cash (Cr.) $1,100

30- Dividend Payable (Dr.) $2,000

Cash (Cr.) $2,000

Explanation:

The company has incurred business transactions which are recorded in the system as journal entries. These entries are then posted to create ledgers which shows the summarize form of all the transactions. These ledger then create trial balance which displays complete account balances of all the transactions separately.

6 0
3 years ago
Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on
Kitty [74]

Answer:

Total cash collection= $20,375

Explanation:

Giving the following information:

Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.

<u>Sales:</u>

March= $16,300

April= $32,600

<u>Cash collection April:</u>

Sales on account from April= 32,600*0.25= 8,150

Sales on account from March= 16,300*0.75= 12,225

Total cash collection= $20,375

6 0
3 years ago
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