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mixer [17]
2 years ago
7

If we were able to invest a Gradient = $100 at the end of each year for 7 years at 6% interest (i.e., So at the end of year 1, $

100 at the end of year 2, $200 at the end of year 3, ..., and $600 at the end of year 7), what Annual amount or Annuity could we take out of the bank starting at the end of the first year and continuing until the end of the seventh year?
Business
1 answer:
zavuch27 [327]2 years ago
3 0

Answer:

We can withdraw an equivalent annuity of  $ 293.658 each year.

Explanation:

We build a scheduled table to know the future value of the gradient investment

Time    Beg        Gradient          Total             Rate Ending

1  $100.00   $100.00  $100.00           0.060   $106.00

2  $106.00   $100.00   $206.00   0.060   $218.36

3  $218.36   $200.00   $418.36   0.060   $443.46

4  $443.46   $300.00   $743.46   0.060   $788.07

5  $788.07   $400.00   $1,188.07   0.060   $1,259.36

6  $1,259.36   $500.00   $1,759.36   0.060   $1,864.92

7  $1,864.92   $600.00   $2,464.92   0.060   $2,612.81

Then, we solve for the equivalent annuity-due:

PV \div \frac{1-(1+r)^{-time} }{rate}(1+rate) = C\\

PV 2,613

time 7

rate 0.06

2612.81 \div \frac{1-(1+0.06)^{-7} }{0.06}(1+0.06) = C\\

C  $ 293.658

Itis annuity due as we will going to retire cash in a 6 year period for  seven times. (at each year-end during 6 years thus, annuity-due

1st      2nd     3rd   4th    5th    6th   7th

/-------/-------/-------/-------/-------/-------/-------/

         1       2       3        4      5        6       7

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Given the following historical demand, what is the weighted moving average forecast (0.4, 0.3, 0.3) for Week 6?
Roman55 [17]

Answer:

The correct option is B. 9200.

Explanation:

This can simply be answered as follows:

F_{6} =(D_{5}*W_{5})+(D_{4}*W_{4})+(D_{3}*W_{3}) .................. (1)

Where:

F_{6} = Weighted moving average forecast (0.4, 0.3, 0.3) for Week 6 = ?

D_{5} = Week 5 demand = 11,000

D_{4} = Week 4 demand = 9,000

D_{3} = Week 3 demand = 7,000

The (0.4, 0.3, 0.3) implies that:

W_{5}  = Weight of Week 5 demand = 0.4

W_{4}  = Weight of Week 4 demand = 0.3

W_{3}  = Weight of Week 3 demand = 0.3

Substituting all the relevant values into equation (1), we have:

F_{6} = (11,000 * 0.40) + (9,000 * 0.30) + (7,000 * 0.30) = 9,200

Therefore, the correct option is B. 9200.

7 0
2 years ago
Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shar
labwork [276]

Answer:

The answer is $1,404,000

Explanation:

Total amount realized from the issuance: 40,000 shares x $24

= $960,000

Treasury stock repurchased:

6,000 shares x $26

=$156,000

Net income = $600,000

The total amount of stockholders' equity at December 31, 2018 is:

Net income + amount realized from issuance - amount of treasury stock

$600,000 + $960,000 - $156,000

$1,404,000

3 0
3 years ago
In the study of internal control, the auditor uses sampling to compare the __________ to the __________.
Arturiano [62]

In the study of internal control, the auditor uses sampling to compare the adjusted estimate of the deviation rate to the tolerable rate of deviation.

How Do Internal Controls Work?

A plan of structure, processes, and records that are concerned with the security of assets and the accuracy of financial records are together referred to as internal controls.

Fundamentals of Internal Control Systems

A firm's unique information requirements should be taken into account when designing an internal control system. As a result, the system might be anything from a straightforward manual system to a sophisticated computerized online system with remote terminals dispersed all over the nation. The accounting system must process data effectively, precisely, and promptly whether it is electronic or manual. An internal control system that has been carefully thought out is at the core of any well-designed accounting system.

Protecting the assets under management's control is one of their main duties.

to know more about  Internal Control Systems

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5 0
1 year ago
Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $ 10 comma 000. The n
tester [92]

Answer:

A. positive cash flow of $ 20 comma 900 from investing activities

Explanation:

book value - sales price = loss on sale

30,900 - sales price = 10,000

30,900 - 10,000 = sales price

sales price = 20,900

Assumming the purchase was on cash, it will be disclosure as cash generated from investing activities for 20,900

The reason is that cashflow do not focus on the gain or loss from the sale. It focus on the cash movements and this sale involve a cashinflow of 20,900

3 0
3 years ago
Need help contact me!
Oliga [24]

Answer:

you need help in what???

7 0
3 years ago
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