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IrinaK [193]
3 years ago
13

How many years will it take for an initial investment of $ 50 comma 000 to grow to $ 75 comma 000 question mark Assume a rate of

interest of 5​% compounded continuously
Business
2 answers:
vaieri [72.5K]3 years ago
6 0

Answer:

It will take approximately 8.31 years or 8 years and 4 months to earn $75,000 by investing $50,000 at 5% compounded continuously.

Explanation:

Compound of interest is the addition of interest value in principal amount to calculate further interest on the interest and principal amount as well.  It other words it is Interest on Interest situation. Reinvesting of interest value is the concept behind this.

We use following formula to calculate the period required to earn compounded value.

Future Value = Present value ( 1 + rate of Interest )^number of period

$75,000 = $50,000 x ( 1 + 0.05 )^n

$75,000 / $50,000 = ( 1.05 )^n

1.50 = 1.05^n

log 1.50 = n log 1.05

n = log 1.5 / log 1.05

n = 8.31

Tomtit [17]3 years ago
3 0

Answer:

It will take 8 years and 113 days.

Explanation:

Giving the following information:

How many years will it take for an initial investment of $50,000 to grow to $75,000.

We need to use a variation of the future value formula:

FV= PV*(1+i)^n

Isolation n:

n=[ln(FV/PV)]/ln(1+r)

n= [ln(75000/50,000)] / ln(1.05)= 8.31

To be more accurate:

0.31*365= 113

It will take 8 years and 113 days.

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Hailey, Inc., has sales of $19,730, costs of $9,300, depreciation expense of $1,970, and interest expense of $1,460. Assume the
jarptica [38.1K]

Answer:

Operating cash flow is  $7,980

Explanation:

EBIT = sales of $19,730 - costs of $9,300 - depreciation expense of $1,970 = $8,460

Tax = (EBIT of $8,460 - interest expense of $1,460) * Tax rate 35%

= $2,450

The operating cash flow (OCF) = EBIT + Depreciation - Tax = $8,460 + $1,970 - $2,450 = $7,980

6 0
3 years ago
The director of research has asked you to produce a pro forma valuation of a target company using leveraged buyout analysis. A c
statuscvo [17]

6.8  will be the debt-to-EBITDA ratio.

EBITDA* 8.5=Transaction Value

(Transaction value * 0.8) / EBITDA = 6.8

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in certain circumstances. However, EBITDA can be misleading because it does not reflect the cost of capital investments such as property, plant, and equipment.

This metric also excludes debt-related expenses by adding interest and tax costs to revenues. However, it is a more accurate measure of business performance as it is able to report profit before the effect of accounting and financial deductions.

Learn more about the debt-to-income ratio here: brainly.com/question/24814852

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4 0
1 year ago
A partner can be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that
Tju [1.3M]

A partner <u>cannot</u> be held liable for a partnership obligation only if he or she participated in, or knew about, whatever it was that gave rise to the obligation.

<h3>What is partnership?</h3>

Partnership arrangements come in many different forms. One type of business where partners may have minimal liability is a partnership where all participants share profits and liabilities equally. Additionally, there is the so-called "silent partner," when one party does not participate in the day-to-day management of the company.

  • An agreement between two or more people to manage a business' operations and divide its assets and liabilities is known as a partnership.
  • All partners in a general partnership corporation split the company's assets and debts equally.
  • Lawyers and other professionals frequently create limited liability partnerships.

A partnership may have tax advantages over a corporation.

To learn more about partnership from the given link:

brainly.com/question/22848646

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8 0
2 years ago
At the beginning of the month, the Forming Department of Martin Manufacturing had 17,000 units in inventory, 30% complete as to
goldenfox [79]

Answer:

A) 82,275 materials; 79,400 conversion

Explanation:

<u>Calculation of the Equivalent Units of Production with respect to Raw Materials and Conversion Costs</u>

1. Raw Materials

Ending Work In Process (11,500 × 85%)                                =   9,775

Completed and Transferred (72,500 × 100%)                      = 72,500

Equivalent Units of Production with respect to Materials   = 82,275

2. Conversion Costs

Ending Work In Process (11,500 × 60%)                                =   6,900

Completed and Transferred (72,500 × 100%)                      = 72,500

Equivalent Units of Production with respect to Materials   = 79,400

4 0
2 years ago
_____ 7. While North Americans want to decide the main points at a business meeting and leave the details for later, people in t
Afina-wow [57]

Answer:

"Mexico" is the appropriate answer.

Explanation:

  • Throughout the case of Mexican individuals, what and when to talk in the discussions or conferences is punctual.
  • Furthermore, you wouldn't overlook the little characteristics because doing so would generate misunderstanding or some complications. You mention as well as continue to talk all about that at the conference.
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3 years ago
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