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Marrrta [24]
3 years ago
9

You want to save $98,000 to buy an boat by making an equal, end of year payment into a brokerage account for the next 9 years. I

f you expect to earn an annual interest rate of 7.75% on your account, how much do you need to deposit each year into your account?
Business
2 answers:
algol [13]3 years ago
7 0

Answer: $7,930

Explanation:

The payments are to be equal so this is an annuity. The expected value is to be $98,000 in 9 years so this is a future value of an Annuity.

The formula is;

FV = P * \frac{[1 + i]^n-1}{i}

98,000 = P * \frac{[1 + 0.075]^9-1}{0.075}

98,000 = P * 12.3581

P = 98,000/12.3581

P = $7,930

malfutka [58]3 years ago
6 0

Answer:

Annual deposit= $7,930.11

Explanation:

Giving the following information:

FV= $98,000

n= 9 years

i= 0.0775

<u>To calculate the annual deposit, we need to use the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (98,000*0.0775) / [(1.0775^9) - 1]

A= $7,930.11

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gregori [183]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr,                            $31,770

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(Being issuance of shares for cash is recorded)

2. No Journal Entry is required

3. Office furniture Dr,          $3,740

       To Accounts payable           $3,740

(Being purchase of office furniture on credit is recorded)

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(Being customer billed for service is recorded)

5. Cash                                $185  

            To credit revenue       $185

(Being cash received for service is recorded)

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(Being cash paid for office furniture purchased is recorded)

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5 0
3 years ago
Select the correct answer. Which statement describes points of difference? A. essential elements of a brand that help it justify
V125BC [204]

Answer:

I believe it is B but I'm not sure

8 0
3 years ago
Read 2 more answers
Woodruff Inc. offers you a project that will pay you $17,000/year. If the cost of this project is $100,000, and the discount rat
otez555 [7]

Answer:

The length of time = 12 years

Explanation:

<em>The number of years the case would be determines the length time it takes the present value of  annuity of 17,000 to equate the initial cost </em>

Initial cost = A× (1- (1+r)^(-n)/r =

A- 17,000, r- 13%, n - ?

So we will need to work out the value of " n"

100,000 = 17,000 × 1- 1.13^(-n)/0.133

100,000/17,000 =1- 1.13^(-n)/0.13

5.88235 ×0.13 = 1- 1.13^(-n)

n = 12

The number of years is approximately 12 years

The length of time = 12 years

3 0
3 years ago
You have decided to start saving up to buy a house. You plan on withdrawing $25,000 at the end of year 4 for a down payment, $18
allochka39001 [22]

Answer:

$75,745.56

Explanation:

In order to determine how much to deposit today, calculate the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1  - 3 = 0    

Cash flow in year 4 = $25,000

Cash flow in year 5 = $18,000

Cash flow in year 6 = $18,000

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I = 1.25 %

PV = $75,745.56

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
2 years ago
Horten Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make
shusha [124]

Answer:

Tennis racquet cost is $76.71   per unit

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Price of badminton racquet  at 30% mark-up is  $95.77  

Explanation:

I calculated the cost of each racquet  as well as their prices in the attached excel file.

I started I added all prime costs(direct materials plus direct labor costs) to overhead costs.

After  having arrived at total manufacturing costs, I divided them by volume of each product to arrive at cost per unit.

I then marked up the cost by 30% to determine market price per unit.

Download xlsx
5 0
2 years ago
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