1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Luba_88 [7]
3 years ago
15

A student deposits $1,642 in the bank that pays 6.2% interest yearly (using yearly compounding). After 5 years he withdraws the

money from the account and deposits it in perpetual annuity with interest rate 7.5%, that pays X amount yearly. Find X.
Business
1 answer:
tamaranim1 [39]3 years ago
6 0

Answer:

the perpetuity will pay the student 166.36 dollar per years

Explanation:

First, we solve for the amount of the original investment after 5 years:

Principal \: (1+ r)^{time} = Amount

Principal 1,642.00

time 5.00

rate 0.06200

1642 \: (1+ 0.062)^{5} = Amount

Amount 2,218.17

<u>Then, this goes into a perpetual annuity at 7.5%</u>

2,218.17 x 0.075 = 166.3630983 = 166.36

the perpetuity will pay the student 166.36 dollar per years

You might be interested in
Accountants consider only explicit costs when measuring accounting profit. Accountants ignore implicit costs because
TiliK225 [7]

Answer:

are not egarded to their sector

Explanation:

follow me

3 0
3 years ago
If Janet decides to wear her favorite red shirt instead of her favorite blue dress, she is making what?
tatuchka [14]

Answer:

she is making a decision?

8 0
2 years ago
Read 2 more answers
The ratio of all resources to the goods and services produced is referred as
Sergio039 [100]
Multifactor productivity is the ratio of all resources to the goods and services produced. It is also known as total factor productivity and is a measure of economic performance that compares the amount of goods and services produced to the amount of combined inputs used to produce those goods and services. The inputs may include labor, capital, energy, materials, and purchased services.
8 0
2 years ago
The concept of leverage is that a.a high debt-to-equity ratio is favorable. b.it is appropriate to borrow if the return on the a
Travka [436]

Answer:

b. it is appropriate to borrow if the return on the assets is greater than the cost of the financing.

Explanation:

A leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.

In Financial accounting, the concept of leverage is that it is appropriate for a business firm to borrow an amount of money (debt), if the return on the assets (capital gain or income) is greater than the cost of the financing (debt or borrowed money).

Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.

7 0
2 years ago
Which of the following is an incorrect statement regarding variances?
laiz [17]

Answer:

The answer is B.

Explanation:

Variance is the difference between the expected sales(revenue), price, material quantity, material cost(expense) and the actual sales, price or material quantity.

Sometimes, expected or budgeted sales or price might be higher than actual sales or price, if this happens the variance is an unfavorable one.

And if it is the actual that is higher or more than the budgeted or expected sales or price, we say it is a favourable variance.

4 0
3 years ago
Other questions:
  • Your plan projects revenue of $5,000, $8,000, and $10,000 in years 1 through 3. Expenses are projected to be $9,000 for each of
    5·1 answer
  • Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effect of each of
    6·1 answer
  • Which one of the following is most often NOT a common trait of an unhealthy company culture? A. a politicized internal environme
    10·1 answer
  • When analyzing the key elements of a country's economic environment, it is best to apply a systems perspective?
    13·1 answer
  • 5. If a business letter is part of a series of correspondence, a/an _______ line is often included. A. attention B. urgent C. co
    10·1 answer
  • Two​ countries, A and B​, both are currently in recession. The values of the MPS for A and B are 0.1 and 0.5 respectively. The g
    11·1 answer
  • This principle suggests that a certain amount of money today has different buying power than the same amount of money in the fut
    9·1 answer
  • Jif Peanut Butter has long used the slogan "Choosy mothers choose Jif." This campaign does not directly challenge competitors bu
    7·2 answers
  • On January 1, 2021, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cos
    8·1 answer
  • 10
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!