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3 years ago

Find the present value that will grow to $45,000 if interest is 3.6% compounded monthly for 1 year.

Business

1 answer:

Vaselesa [24]3 years ago

3 0

Answer:

43,411.15

Explanation:

The formula for compound interest is

A = P(1 +I) ^n

From the question,

A = 45,000

P = Unknown

I = 0.036 ÷ 12

n = 1 * 12

Therefore,

45,000 = P(1 +0.036/12) ^1 *12

45,000 = P(1.003)^12

45,000 = 1.0365998P

P = 43,411.15

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The Red Baron saw Snoopy sitting on his dog house, writing his greatest novel. Snoopy was so involved with his story writing tha

Oduvanchick [21]

Answer:

The correct answer is letter "D": intentional infliction of emotional distress.

Explanation:

Intentional infliction of emotional distress or IIED is a common law applied when an individual causes emotional distress to another person intentionally by behaving inappropriately. Intentional infliction of emotional distress is usually accompanied by physical injuries.

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3 years ago

Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 perce

Dimas [21]

Answer:

Machine A; because it will save the company about $13,406 a year

Explanation:

The computation is shown below:

Equate Annual Cost = PV of Cash Outflow ÷ PVAF (r%, n)

For Machine A:

Year CF PVF at 14.6% Disc CF

0 $3,18,000.00 1.0000 $3,18,000.00

1 $ 8,700.00 0.8726 $7,591.62

2 $8,700.00 0.7614 $6,624.45

3 $ 8,700.00 0.6644 $ 5,780.50

PV of Cash Outflow $3,37,996.58

PVAF(14.6%,3) 2.2985

PV of Cash Outflow $1,47,053.69

For Machine B:

Year CF PVF at 14.6% Disc CF

0 $2,47,000.00 1.0000 $2,47,000.00

1 $9,300.00 0.8726 $8,115.18

2 $9,300.00 0.7614 $7,081.31

PV of Cash Outflow $2,62,196.49

PVAF(14.6%,2) 1.6340

PV of Cash Outflow $1,60,459.86

So the machine cost would be purchased as it lower the cost by $13,406.17

5 0

2 years ago

On January 1, 2021, Legion Company sold $250,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December

notsponge [240]

Answer:

The bond interest expense to be shown in profit or loss as t 30 June 2021

$9,838.56

Explanation:

The bond interest expense is the actual finance cost of using the funds made available by bondholders while the coupon payment is the portion of the finance cost paid to them periodically.

Interest expense=bonds cash proceeds*yield to maturity*6/12

bonds cash proceeds is $163,976

yield to maturity is 12%

interest expense=$163,976*12%*6/12=$9,838.56

5 0

3 years ago

Read 2 more answers

As long as there are ____ costs, ____ profit will be greater than ____ profit.

gizmo_the_mogwai [7]

The answer is: As long as there are economic costs, accounting profit will be greater than economic profit.

Economic costs are defined as the opportunity cost incurred when processing inputs for production, while economic profit is defined as the combination between the revenue that a business entity generates and the monetary and opportunity costs that it pays.

Accounting profit, on the other hand only accounts for the monetary costs that a business entity has to pay and the revenue that it generates.

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3 years ago

Which scenario might produce a new equilibrium interest rate of 5% and a new equilibrium quantity of loanable funds of $150 bill

Zigmanuir [339]

Answer:

Increase in capital inflows from other countries

Explanation:

An increase in capital inflows can be known to produce a boom in an economy. It leads to an appreciation of nominal exchange rate and also the real exchange rate. It is the inflow of capital from one nation to another nation. It takes place through the aid of the government, private organizations and international organizations or probably agencies.

Increase in capital inflows from other countries can bring about an equilibrium interest rate of 5% and a new equilibrium quantity of loanable funds of $150 billion.

7 0

3 years ago