Ask question

Ask question

All categories

3 years ago

15

You want to have $400,000 to purchase a house 10 years from today. Assuming you can earn 3 percent, compounded annually, how muc

h money must you invest today

1 answer:

AfilCa [17]3 years ago

6 0

Answer:

$297,638

Explanation:

Future Value (FV) = 400,000 (The amount you need to have in 10 years)

n = 10 years

i/r = 3%/year

Present Value (PV) - Money you need to invest today:

= 400,000 / (1+0.03)^10 = $297,638

You might be interested in

A candle manufacturer produces 4,000 units when the market price is $11 per unit and produces 6,000 units when the market price

mario62 [17]

Answer:

The option (b) 2.4 is correct.

Explanation:

We can find price elasticity of demand by using the formula shown in the attachment attached with.

Since we know the quantities of product associated with the market price of the product, by putting values in the equation we have:

Price elasticity of Demand =

= [(6000 - 4000) / (6000 + 4000)/2] / [(13 - 11) / (13+11)/2]

Price elasticity of Demand = 2.4

So this is how we can find the price elasticity of supply which says that the producers will respond to prices drop by producing lower quantity of product.

5 0

3 years ago

A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000;

Tema [17]

Answer:

The projected Net Income is $70,784

Explanation:

The Pro- forma income Statement

Working Note:

Variable cost = Sales × 44%

= $585,000 × 44%

= $257,400

EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation

= $585,000 - $257,400 - $187,000 - $51,000

= $89,600

Net Income = EBT × Tax rate

= $89,600 × 21%

= $70,784

8 0

3 years ago

This information relates to Sherper Co. 1. On April 5 purchased merchandise from Newport Company for $22,000, terms 2/10, n/10.

Feliz [49]

Answer:

April 5, purchased merchandise on account terms 2/10, n/10

Dr Merchandise inventory 22,000

Cr Accounts payable 22,000

April 6, paid freight costs

Dr Merchandise inventory 900

Cr Cash 900

April 7, purchase equipment on account

Dr P, P & E - Equipment 26,000

Cr Accounts receivable 26,000

April 8, returned some merchandise (April 5th purchase)

Dr Accounts payable 2,000

Cr Merchandise inventory 2,000

April 15, paid merchandise invoice

Dr Accounts payable 20,000

Cr Cash 19,600

Cr Purchase discounts 400

or

May 4, paid merchandise invoice

Dr Accounts payable 20,000

Cr Cash 20,000

If the company pays the invoice on April 15th, it will get a 2% discount which must be recorded as a purchase discount.

5 0

3 years ago

Lancelot Manufacturing is a small textile manufacturer using machinehours as the single indirectcost rate to allocate manufactur

zhenek [66]

Answer:

$3,927

Explanation:

For the computation of bid price first we need to follow some steps which is shown below:-

Manufacturing overhead rate = Overhead cost ÷ Machine hours

= 45,000 ÷ 100,000

= $0.45

Total manufacturing cost charged to the school

= 2,000 + 400 + (900 × 0.45)

= $2,805

Markup cost = $2,805 × 0.4

= $1,122

Bid price of job = Total manufacturing cost charged to school + Markup cost

= $2,805 + $1,122

= $3,927

7 0

4 years ago

What is pay per click advertising?

Kamila [148]

Pay-per-click is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked. Pay-per-click is commonly associated with first-tier search engines.

7 0

3 years ago