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
Whitepunk [10]
3 years ago
15

The amount of time it takes for an investment to double in value is called the doubling time for the investment. If the doubling

time for a $10,000 investment is seven years and the interest on the investment is compounded annually, what must be the annual rate of interest?
Business
1 answer:
Paul [167]3 years ago
7 0

Answer:

Compounding interest rate, r = 10.41%

Explanation:

As the investment will be doubled after 7 years from now, the future value of the current investment will be = $10,000 × 2 = $20,000

Therefore,

Number of periods (years), n = 7

Future value, FV = $20,000

Principal = Present Value, PV = $10,000

we have to determine the compounding interest rate, r.

We know,

r = [(\frac{FV}{PV})^{\frac{1}{n}} - 1]

Putting the values into the formula, we can get,

r = [(\frac{20,000}{10,000})^{\frac{1}{7}} - 1]

or, r =(2^{\frac{1}{7}} - 1)

With the help of calculator, we can find the value of 2^{\frac{1}{7}} = 1.1041

or, r = (1.1041 - 1)

or, r = 0.1041

Therefore, interest rate = 10.41%

You might be interested in
The Mixing Department’s output during the period consists of 20,000 units completed and transferred out, and 5,000 units in en
Zigmanuir [339]

Answer:

Materials = 23,000 units

Conversion Costs = 23,000 units

Explanation:

Note that the weighted-average method is being used to calculate the equivalent units.

Using this method, we are interested only in calculating equivalent units in units that were completed and transferred and units of ending work in process.

<u>Calculation of equivalent units of production for Materials and Conversion Costs.</u>

Materials

Completed and transferred (20,000 units × 100%)     20,000

Ending Work In Process (5,000 units × 60%)                 3,000

Equivalent units                                                              23,000

Conversion Cost

Completed and transferred (20,000 units × 100%)     20,000

Ending Work In Process (5,000 units × 60%)                 3,000

Equivalent units                                                              23,000

4 0
3 years ago
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries,
stiks02 [169]

Answer:

I will use the 2020 tax schedule since recovery rebate credit applies to 2020:

Marc and Michelle's gross income = Marc's and Michelle's salaries + interest from corporate bonds = $64,000 + $12,000 + $500 = $76,500

they should choose the standard deduction since it is higher than their itemized deductions = ($24,400)

contribution to IRA = ($2,500)

<u>alimony payment = ($1,500) the divorce agreement was settled on 2005</u>

Marc and Michelle's taxable income = $48,100

Marc and Michelle's tax liability = $1,975 + [12% x ($48,100 - $19,750)] = $5,377

Interests on municipal bonds is not taxable.

The amount of taxes that they owe = $5,377 - $3,500 (federal tax withholdings) = $1,877

Refundable tax credits:

$2,000 in child tax credit

<u>$2,900 in recovery rebate credit</u>

total = $4,900

taxes payable or refund = tax liability - refundable tax credits = $1,877 - $4,900 = -$3,023.

Marc and Michelle should get a refund for $3,023

4 0
3 years ago
Who knows these 2 plz answer only if you are sure. I give brainliest points
jarptica [38.1K]
For question 3: I think it's True
For question 4: I think it's False.
Did that help?
 0_0
6 0
2 years ago
Delta bought equipment on 1/1/15 at a cost of $525. The equipment has a useful life of 7 years and no salvage value. The full co
Alexeev081 [22]

Answer:

Delta

a) Error discovered on 1/1/17: Net income for 2015 is incorrect. The net income is too low by $525

b) Error discovered on 1/1/17: Net income for 2016 is incorrect. The net income is too high by $75.

c) Error discovered on 1/1/18: Total assets for 1/1/18 are incorrect.  The assets are too low by $300 ($525 - $225)

d) Error discovered on 1/1/24: Retained earnings and total assets are correct.  

Explanation:

a) Data and Analysis:

Cost of equipment on 1/1/15 = $525

Estimated useful life = 7 years

Salvage value = $0

Cost of equipment recorded as Repairs and Maintenance Expense

5 0
2 years ago
Chen Company’s Small Motor Division manufactures a number of small motors used in household and office appliances. The Household
liq [111]

Answer:

a. $11

b. $35

c. If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.

Explanation:

The minimum acceptable price is the price that is acceptable to the transferring division and out of a range of acceptable prices, it is that which would be the best for the company.

When there is excess capacity.

Note : No opportunity costs would exist.

Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost

                                            = $11

When there is excess capacity.

Note : Opportunity costs would exist.

Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost

                                            = $11 + ($35 - $11 )

                                            = $35

Why Capacity of transferring division (Small Motor Division) has an effect on the transfer price.

If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.

3 0
2 years ago
Other questions:
  • Bagels and cream cheese are complementary goods. The price of flour, used to make bagels, has fallen. As a result, the equilibri
    6·1 answer
  • Changing prices to attract customers is most difficult in a
    14·1 answer
  • Which of the following is an example of party retailing?
    8·1 answer
  • Which job category is likely to deal with primarily supply chains
    6·1 answer
  • In a market economy, a. the allocation of scarce resources determines prices and prices, in turn, determine supply and demand. b
    9·1 answer
  • Mainline Ltd. is a landline telephone manufacturer whose average return on invested capital is approximately 2 percent. Because
    11·1 answer
  • Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for th
    10·1 answer
  • Suppose the reserve requirement is 5​%. What is the effect on total checkable deposits in the economy if bank reserves increase
    12·1 answer
  • The CEO and his top managers have asked themselves two important​ questions: a. do customers value what the company is​ providin
    11·1 answer
  • Why does excessive fishing occur?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!