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MakcuM [25]
3 years ago
9

What is the interest rate for initial investment of $100,000 to grow $300,000 in 10 years

Business
2 answers:
igomit [66]3 years ago
7 0

The interest rate that increases from long-term investment for 10 years is 200%

The following calculations:

<em>(</em><em>Current investment</em><em> - </em><em>Initial investment</em><em>) / </em><em>Initial investment</em><em> x </em><em>100%</em><em> = </em><em>Result </em>

<em>(</em><em>$ 300,000</em><em>- </em><em>$ 100,000</em><em>) / </em><em>$ 100,000</em><em> x </em><em>100%</em><em> = </em><em>2 </em><em>x </em><em>100%</em><em> = </em><em>200%</em><em> </em>

<h2>Further Explanation </h2>

In investments, the capital you spend to finance the investment must be calculated in the calculation of investment returns.

Return on Investment can be described as the ratio of capital that you spend on investments in proportion to the benefits of the investment.

Calculating Return of Investment is very important because it determines your ability to develop the investment in the future, not just to run it (because investment requires additional capital if you want to develop it).

For some investors, short-term investments are chosen because they have the potential to provide faster returns.

Meanwhile, long-term investments are chosen to take advantage of the compounding effect, minimize risk, and to realize various financial goals in the long run.

Many investors who prefer to accelerate the velocity of money so that they prefer short-term investments so that the return in the form of the principal investment and interest can be obtained more quickly.

The compounding effect is actually very common in the world of investment and credit. It's just that, many investors have not maximized the benefits.

Learn More

Long-term investment brainly.com/question/13810885

investment interest brainly.com/question/13804061

Details

Grade: middle school

Subject: Business

Keyword: long-term, investment, interest

dybincka [34]3 years ago
6 0

Answer:

r=20% or 0.2 %

Calculation:

Solving equation:

r = (1/10)((300000/100000) - 1) = 0.2

r = 0.2

Converting r decimal to R a percentage

R = 0.2 * 100 = 20%/year

The interest rate required to get a total amount, principal plus interest, of $300,000.00 from simple interest on a principal of $100,000.00 over 10 years is 20% per year.

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Buffalo Company had bonds outstanding with a maturity value of $307,000. On April 30, 2017, when these bonds had an unamortized
Troyanec [42]

Answer:

bonds carrying value = $307,000 - $10,000 = $297,000

the journal entry to record the bond redemption:

April 30, 2017, redemption of bonds

Dr Bonds payable 307,000

Dr Loss on redemption of bonds 25,350

    Cr Cash 322,350

    Cr Discount on bonds payable 10,000

the journal entry to record the issuance of bonds:

March 31, bonds were issued

Dr Cash 313,140

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8 0
3 years ago
Zira Co. reports the following production budget for the next four months. April May June July Production (units) 455 570 560 54
soldier1979 [14.2K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The production budget for the next four months.

April= 455 units

May= 570 units

June= 560

July= 540 units

Each finished unit requires five pounds of raw materials.

The company wants to end each month with raw materials inventory equal to 30% of next month’s production needs.

Beginning raw materials inventory for April was 663 pounds. Assume direct materials cost $4 per pound.

Materials required= Production for the month + ending inventory - beginning inventory

April (In pounds):

Production for the month= 455*5= 2,275

Ending inventory= 570*0.30= 171*5= 855

Beginning inventory= (63)

Total pounds= 3,067

Total cost= 3,067*4= $12,268

May (in pounds):

Production for the month= 570*5= 2,850

Ending inventory= 560*0.30= 168*5= 840

Beginning inventory= (855)

Total pounds= 2,835

Total cost= 2,835*4= $11,340

June (in pounds):

Production for the month= 560*5= 2,800

Ending inventory= 540*0.30= 162*5= 810

Beginning inventory= (840)

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The following variable production costs apply to goods made by Stuart Manufacturing Corporation: Item Cost per unit Materials $
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Explanation:

The computation of total variable production cost is shown below:

For 13,000 units it would be

= Total per unit cost × number of unit produced

= $17.25 × 13,000 units

= $224,250

For 23,000 units it would be

= Total per unit cost × number of unit produced

= $17.25 × 23,000 units

= $396,750

For 33,000 units it would be

= Total per unit cost × number of unit produced

= $17.25 × 33,000 units

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3 0
3 years ago
Which principle would a company be violating if it withheld information that would make a difference to users of financial state
Fiesta28 [93]

Answer:

The correct answer to the following question will be "Full Disclosure Principle".

Explanation:

  • The idea of full disclosure is a rule that allows a corporation to disclose to any person who is used to reading such material the necessary information about its financial statements and other related information.
  • It states that almost all information would be included in the financial reports (profit and loss account and balance sheet) of an entity that would provide investor's knowledge about the yearly financial position of a firm. The understanding of this concept is extremely judgmental, as the amount of information that could be distributed is potentially significant.

Therefore, this type of principle is highly used by firms.

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A decrease in aggregate supply means:
Ede4ka [16]

Answer:

C. The real domestic output would decrease and the price level would rise.

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as the As decreases, it will decrease the real output of the economy.

the decrease in the supply will lead to the deficit supply and increasing in the price level of the economy.

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