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myrzilka [38]
3 years ago
12

You think that in 15 years it will cost $214,000 to provide your child with a 4-year collge education. Will you have enough if y

ou take $75,000 toady and invest it for 15 years at 4%?
Business
1 answer:
prisoha [69]3 years ago
8 0

Answer:

You will not have enough.

Explanation:

The rate of the investment is compounded, so the value at year 1, will be the value at year 0, increased in a 4%. Then, the value at year 2 will be the value at year 1, increased in other 4%, that's equal to the value at year 0 increased twice at 4%.

So, the formula to calculating the value at year 15 is 75,000*(1.04)^15 = 135,070.63. THen, it will not be enough. You have to invest at least 214,000/1.04^15 = 118,826.20 at year 0, at a rate of 4%.

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Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n)6% interest rate to invest in the stock market.
elena-14-01-66 [18.8K]

Answer:

D)-26%

Explanation:

The computation of the realized return on your investment is shown below:

= (Rate of return × total investment) - (interest paid)

= (-10% × $20,000) - (6% × $1,000)

= (-$2000 - $600)

= -$2,600

Now  the Rate of return is

=(-$2,600 ÷ $10,000)

= -26%

hence, the realized return on your investment is -26%

Therefore the correct option is D.

3 0
3 years ago
Which of the following statements abouot the declaration and payment of cash dividends is correct?
padilas [110]

Answer: C. Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.

Explanation:

When a company pays out Dividends it gives out money to it's shareholders and this has the effect of decreasing the cash balance that the company has.

This is cash that could have gone into investing and expanding the business but instead has gone to shareholders. Dividends therefore reduce the money available for investments.

It is for this reason that Growth Companies do not pay much dividends as they keep reinvesting profits to increase capacity and this usually adds value to the company and increases their stock price within a shorter period of time.

6 0
3 years ago
What is the ending inventory for period 8 when the MPS is 0 units?
KatRina [158]

Answer:

Ending inventory  = 64 units

Explanation:

Given:

Ending inventory for period 7 = 89 units

Forecast demand for period 7 = 120 units

Forecast demand for period 8 = 20 units

Customer order for period 8 = 25 units

MPS = 0 units

Computation:

Ending inventory = Ending inventory for last period + MPS - maximum from (Forecast demand for Current period ,Customer order for current  period)

Ending inventory  = 89 units + 0 - maximum from (20 , 25)

Ending inventory  = 89 units -25 units

Ending inventory  = 64 units

6 0
3 years ago
ACME labs bought a new inspection device for $182,730. The accounting department has estimated that the device will have an annu
enyata [817]

Answer:

salvage value is $16,368.34

Explanation:

given data

initial cost = $182,730

annualized capital cost = $42,442

service life = 7 year

interest rate = 15%

solution

we get here first present value that is

annual value  = rate ×  \frac{present\ value}{(1 - (1+ r)^{-t})}       .................1

put here value and we get

42,442 = 15% ×  \frac{present\ value}{(1 - (1+ 0.15)^{-7})}

solve it we get

present value = $176,576.5343  

so

present value = initial investment + salvage value     ..............2

we take here present value and initial investment will be negative

-176,576.5343 = -182,730 + salvage value(p/f,15%,7)  

-176,576.5343 +182,730 = salvage value(p/f,15%,7)

6,153.465 = salvage value × 0.3759

salvage value = 16,368.34

3 0
3 years ago
The use of the allows bank customers the ability to complete most transactions electronically without leaving home.
jeka57 [31]

The use of the <u>internet  </u>allows bank customers the ability to complete most transactions electronically without leaving home.

<h3>What is Internet?</h3>

Internet help to transmit data or information across a network, making it possible for internet user to communicate and exchange information.

Example of internet are:

  • WAN which full meaning is  Wide Area Network.
  • LAN which full meaning is Local Area Network.

Hence, internet play an important function  as it make it possible for bank customers to complete their transactions electronically or to carryout their transaction online without having to leave their various homes.

Learn more about internet here:brainly.com/question/2780939

#SPJ1

5 0
1 year ago
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