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Alexeev081 [22]
3 years ago
15

Linda O’Shay deposited $30,000 in a savings account as a perpetual trust. She believes the account will earn 7% annual interest

during the first 10 years and 5% interest thereafter. The trust is to provide a uniform end-of-year scholarship at the university. What uniform amount could be used for the student scholarship each year, beginning at the end of the first year and continuing forever?
Business
1 answer:
sweet [91]3 years ago
8 0

Answer:

The uniform amount that can be used for scholaship, every year, first being at the end of the first year is $1,745.14

Explanation:

Hi, in order to find the amount that can be used to pay for school so the balance would last forever, given that $30,000 were left in the savings account, we need to solve for A the following equation.

PresentValue=\frac{A((1+r_{1} )^{n}-1) }{r_{1}(1+r_{1})^{n} } +\frac{A}{(r_{2})} \frac{1}{(1+r_{1})^n}

Where;

r1 = 7%

r2 = 5%

n = 10

PresentValue = $30,000

Everything should look like this:

30,000=\frac{A((1+0.07)^{10}-1) }{0.07(1+0.07)^{10} } +\frac{A}{(0.05)} \frac{1}{(1+0.07)^10}

30,000=A(7.023581541)+A(10.16698584)

30,000=A(17.19056738)

A=1,745.14

So, uniform amount that could be used for the student scholarship each year, beginning at the end of the first year and continuing forever is $1,745.14

Best of luck.

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Answer:

Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.

Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:

+ Jones and Sandridge sign an agreement that Jones surrenders  significant rights as a shareholder;

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3 years ago
MC Qu. 90 A company is planning to purchase... A company is planning to purchase a machine that will cost $30,600 with a six-yea
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Answer:

Accounting rate of return = 20.53%

Explanation:

<em>The accounting rate of return is the average annual income expressed as a percentage of the average investment.</em>

The simple rate of return can be calculated using the two formula below:

Accounting rate of return

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Average investment = (Initial cost + scrap value)/2

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A(n) is a long-term contract under which a borrower agrees to make payments of interest and principal on specific dates. There a
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Answer:

Bond,treasury

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Explanation:

The organizational structure and culture are essential for the design of a strategic plan aligned with the organization's purpose.

What happens is that the structure and culture of an organization constitute its identity, its way of organizing itself and creating an environment designed to obtain the objectives and goals stipulated by strategic planning. So it can be said that there is no way to develop a strategic plan without considering the structure or culture, because it is through these two variables that action plans are developed and modeled according to what the company is, and what it plans to be in the future. All organizational systems must be foreseen in the planning and be developed with the same degree of importance, because together they form the organizational whole that will lead a company to be well positioned in the market, achieve continuous improvement in its processes, achieve competitive advantage in the market, etc.

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coldgirl [10]

Answer:

The correct answer is option D.

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Sunk costs can be defined as those costs which already been incurred and cannot be recovered anymore. These costs are excluded from business decision making.

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Sunk costs are contrasted to relevant cost which is yet to be incurred in the future. Cost pf machinery, equipment, etc are examples of sunk cost.

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