Answer:
$25,650
Explanation:
The formula for calculating the future value of an annuity is:
F = P x ([1 + I]^N - 1 ) / I
where:
- P = payment amount = $1,000
- I = interest rate = 4%
- N = number of payments = 18
F = $1,000 x ([1 + 4%]^18 - 1 ) / 4% = $1,000 x (1.04^18 - 1 ) / 4% = $1,000 x (2.026 - 1 ) / 4% = $1,000 x 1.026 / 4% = $25,650
The qualifications of the person regarding the task
Answer:
A. The total cost of the equipment.
Explanation:
Even if Jambon has not used the equipment in 2005 because it can only be used for the product that is to be developed in five years, Jambon still had to pay for the full cost of the equipment.
Because the equipment is laying idle, it is not depreciating. Therefore, the expense that Jambon is not incurring, is the depreciation expense associated with this equipment. This depreciation expense will only be seen in five years, when the product it was bought for is finally completed.
Answer:
Investment period = 24 years
Explanation:
The total amount that an investment made today would become if invested at a particular rate for certain number of years is known as the future value.
The $1,200,000 is the desired future value, the $296, 375 is the present value and the 6% is the interest rate.
FV = PV × (1+r)^n
1,200,000 = 296,375 × (1.06)^(n)
(1.06)^(n) = 1200000/96,375
(1.06)^(n) =4.048924504
find the log of both sides
n log 1.06= log 4.048924504
n= log 4.048924504/log 1.06
n = 24
It will take 24 years
Answer:
Corporate Bonds and T-Bills will have return above 8%
Explanation:
given data
investments = 4
investment = 8 %
solution
first of all we get 95% confidence interval that is as
and here investment returns and standard deviation are attach so
95% confidence interval = Return - 2 × SD to Return + 2 × SD ................a
so here
we can see here as per table attach
here only Corporate Bonds and T-Bills will have return above 8%