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emmainna [20.7K]
3 years ago
11

You are considering investing in a European bank account that pays a nominal annual rate of 18%, compounded monthly.

Business
1 answer:
kumpel [21]3 years ago
6 0

Answer:

d. 38

Explanation:

This is an Annuity Due type of question. You get the hint from the statement "....$5,000 at the <u>beginning</u> of each month," In an Annuity due , the recurring payments occur at the beginning of the period i.e annually, quarterly or (monthly in this case)

So using a financial calculator on "BGN" mode

nominal rate of 18% is the I/Y. However, since it is monthly compounded, convert it to a monthly rate.

I/Y = 18%/12 = 1.5%

PMT; recurring cashflow = -5,000

FV; future value = 250,000

PV ;present value = 0 (note: in annuity, use 0 for the variable not given)

then CPT N = 37.16

Therefore, it will take approximately 38 months

You might be interested in
National Park Tours Co. is a travel agency. The nine transactions recorded by National Park Tours during May 2019, its first mon
lana66690 [7]

Answer:

National Park /Tours Co.

National Park Tours Co.

Unadjusted Trial Balance

May 31, 2019

Account Titles                Debit       Credit

Cash                            $10,700

Equipment                   25,000

Drawing                         3,500

Accounts receivable     3,500

Accounts payable                          $ 1,750

Fees Earned                                   13,900

Supplies                       2,450

Capital                                            34,700

Operating expenses   5,200

Totals                      $50,350     $50,350

Explanation:

a) Data and Calculations:

T-accounts

Cash

Account Titles                Debit       Credit

Beth Worley, Capital  (1) 34,700

Supplies                                      (2) 2,450

Equipment                                  (3) 4,500

Operating expense                   (4) 3,800

Accounts payable                    (5) 18,750

Accounts receivable (6) 10,400

Operating expense                   (8) 1,400

Drawings                                  (9) 3,500

Balance                                        10,700

Totals                         $45,100  $45,100

Equipment

Account Titles             Debit       Credit

Cash                         (3) 4,500

Accounts payable (3) 20,500

Balance                                       25, 000

Totals                       $25,000   $25,000

Beth Worley, Drawing

Account Titles           Debit       Credit

Cash                     (9) 3,500

Accounts Receivable

Account Titles           Debit       Credit

Fees Earned     (7) 13,900

Cash                                    (6) 10,400

Balance                                      3,500

Totals                   $13,900    $13,900

Accounts Payable

Account Titles           Debit       Credit

Equipment                             (3) 20,500

Cash                    (5) 18,750

Balance                      1,750

Totals                   $20,500     $20,500

Fees Earned

Account Titles           Debit       Credit

Accounts receivable            (7) 13,900

Supplies

Account Titles           Debit       Credit

Cash                   (2) $2,450

Beth Worley, Capital

Account Titles           Debit       Credit

Cash                                       (1) 34,700

Operating Expenses

Account Titles           Debit       Credit

Cash                     (4) 3,800

Cash                     (8) 1,400

Balance                                       5,200

Totals                    $5,200       $5,200

3 0
2 years ago
Other things equal, the monopsonistic employer will pay a
zloy xaker [14]

Answer: The correct answer is "a. lower wage rate and hire fewer workers than will a purely competitive employer.".

Explanation: Monopsony is generated when there are many people looking for work and there are only a few employers, who can afford to offer a lower salary than they would have to offer if there was more competition for workers.

5 0
2 years ago
Perdue Company purchased equipment on April 1 for $38,880. The equipment was expected to have a useful life of three years, or 5
finlep [7]

Answer:

See explanation section.

Explanation:

Requirement 1

We know,

Depreciation expense under the straight-line method = (Cost price - residual value) ÷ useful life

The depreciation expense under the straight-line method remains same in every year.

December 31, Year 1 - depreciation expense = ($38,880 - $1,080) ÷ 3 years.

Depreciation expense = ($37,800 ÷ 3)

Depreciation expense = $12,600

Depreciation expense for year 1 = $12,600 × 9 ÷ 12

Depreciation expense for year 1 = $9,450

Requirement 2

The depreciation expense under the straight-line method remains the same every year.

Year 2 depreciation expense = ($38,880 - $1,080) ÷ 3 years = $12,600

Year 3 depreciation expense = ($38,880 - $1,080) ÷ 3 years = $12,600

Year 4 depreciation expense = ($38,880 - $1,080) ÷ 3 years = $12,600

The equipment will be dissolved after 4 year with a residual value of $1,080.

Requirement 3

The depreciation expense under units-of-activity method = [(Cost price - residual value) ÷ Total operating hours] × usage during the period.

Given,

Cost price = $38,880

residual value = $1,080

Total operating hours =  5,400

Putting the values into the formula, we can get

Depreciation expense rate = ($38,880 - $1,080) ÷  5,400

Depreciation expense rate = $37,800 ÷ 5,400

Depreciation expense rate = $7 per hour.

Depreciation expense for year 1 = $7 per hour × 1,000

Depreciation expense for year 1 = $7,000

Requirement 4

We get from requirement 3

Depreciation expense rate = $7 per hour.

Year 2 Depreciation expense = $7 per hour.

Depreciation expense for year 2 = $7 per hour × 1,900 hour.

Depreciation expense for year 2 = $13,300 hour.

Year 3 Depreciation expense = $7 per hour.

Depreciation expense year 3 = $7 per hour ×  1,600 hour.

Depreciation expense year 3 = $11,200 hour.

Year 4 Depreciation expense = $7 per hour.

Depreciation expense year 4 = $7 per hour ×  900 hour.

Depreciation expense year 4 = $6,300 hour.

Requirement 5

Depreciation rate under the double-declining-balance method = (100% ÷ useful life) ÷ 2

Depreciation rate = (100% ÷ 3 years) × 2

Depreciation rate = 66.67%

Depreciation expense for year 1 = cost price × depreciation rate

Given,

cost price = $38,880

depreciation rate = 66.67%

Putting the values into the formula, we can get

Depreciation expense for year 1 = cost price × depreciation rate

Depreciation expense for year 1 = $38,880 × 66.67%

Depreciation expense for year 1 = $25,921

Requirement 6

In double-declining-balance method, depreciation expense is decreasing.

Book value of year 1 after depreciation = Cost price - year 1 depreciation expense =  $38,880 - $25,921 = $12,959

Depreciation expense for year 2 = Book value of year 1 × depreciation rate.

Depreciation expense for year 2 = ($12,959 × 66.67%) = $8,640

Book value of year 2 after depreciation = Book value of year 1 - Depreciation expense for year 2 = $12,959 - $8,640 = $4,319

Depreciation expense for year 3 = Book value of year 2 × depreciation rate.

Depreciation expense for year 3 = $4,319 × 66.67% = $2,879.50

Book value of year 3 after depreciation = Book value of year 2 - Depreciation expense for year 3 = $4,319 - $2,879.50 = $1,439.5

Depreciation expense for year 4 = Book value of year 3 × depreciation rate.

Depreciation expense for year 4 = $1,439.5 × 66.67% = $960

4 0
2 years ago
The ohio state studies and the leadership grid are associated with the ____ approach to leadership.
dsp73

The Ohio state studies and the leadership grid are associated with the behavioral approach to leadership.

<h3>What is meant by the behavioral approach?</h3>

Since human conduct is taught, it is possible to unlearn any behavior and replace it with another behavior. The observable and quantifiable characteristics of human behavior are the main focus of behaviorism. As a result, learnt behaviors can be undone when they become unacceptable.

Relationship behaviors aid followers in feeling at ease with one another, with themselves, and with their surroundings. The behavioral approach's main goal is to clarify how leaders mix these two types of actions to affect followers' efforts to accomplish a goal.

According to the behavior approach, all behaviors are acquired and are predicated on the same core precepts and outcomes.

These are linked to actions taken voluntarily by individuals and include environmental factors that are relevant to the action and are under the control of the individual.

To learn more about behavioral approach refer to:

brainly.com/question/15038015

#SPJ4

4 0
2 years ago
.In 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value
cricket20 [7]

Answer:

The question is not complete,find below complete questions:

If you purchased a $50 face value bond in early 2017 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2027? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2027, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value in 2037. What annual rate of return will you earn over the last 10 years?

The bond is worth $50.50 in the year 2027

The annual rate of return is 7.07%

Explanation:

The future value of the bond is given by the below formula:

FV=PV*(1+r)^N

where PV  is the present of the bond of $50

r is the rate of return of 0.10 percent=0.001

N is the duration of the bond investment of 10 years

FV=50*(1+0.001 )^10

FV=$50.50

However for the face of the bond to double i.e to $100, the rate of return can be computed thus:

r=(FV/PV)^(1/N)-1

where FV=$100 (double of $50)

FV=$50.50(current value in 2027)

N=10

r=($100/$50.50)^(1/10)-1

r=0.070707543

r=7.07%

5 0
3 years ago
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