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Vaselesa [24]
3 years ago
6

Use future value and present value calculations to determine the following: (a) The future value of a $660 savings deposit after

eight years at an annual interest rate of 3 percent. Use Exhibit 1-A. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) (b) The future value of saving $1,660 a year for five years at an annual interest rate of 6 percent. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) (c) The present value of a $2,310 savings account that will earn 3 percent interest for four years. Use Exhibit 1-C. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)
Business
1 answer:
gladu [14]3 years ago
7 0

Answer:

a. $836.07

b. $9,357.57

c. $8586.50

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

$660(1.03)^8 = $836.07

b. The formula for calculating future value of an annuity = A (B / r)

B = [(1 + r)^n] - 1

(1.06)^5 - 1 = 0.338226

( 0.338226 / 0.06) x $1,660 = $9,357.57

c. Present value can be found using a financial calculator

Cash flow each year from year 1 to 4 = $2310

i = 3%

present value = $8586.50

To find the NV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Can an opinion be wrong? Isn’t everyone entitled to an opinion?
attashe74 [19]

Answer:

Yes

Explanation:

An opinion can indeed be wrong unless you based if of scientific facts and have evidence to back up your opinion. Everyone is indeed entitled to an opinion but not everyone listens to everyone’s opinion that is not backed up with facts.

3 0
1 year ago
Emerald Co. uses a perpetual inventory system and records purchases of merchandise at net cost. The company recently purchased 2
Nana76 [90]

Answer:

Explanation:

The journal entry is shown below:

Account payable A/c Dr $3,000

      To Cash A/c $3,000

(Being payment is made is recorded)

We debited the account payable account and credited the cash account so that the correct posting can be done.

Since the half of the disk is returned i.e $3,000 which come after multiplying the $6,000 by 50%

3 0
3 years ago
If in addition to having a high market share in the freight-forwarding industry, your company has strong technical know-how and
Ksivusya [100]

The most negative classification which the freight forwarding could receive is:

  • Average Business

<h3>What is Negative Classification?</h3>

This refers to the use of models to find out the predicted outcome which is in the negative class.

With this in mind, we can see that  because in the high market share, there is the presence of strong technical know how and can produce high-quality products at low cost, then the most negative classification which  the freight forwarding could receive is average business.

Read more about negative classification here:
brainly.com/question/13734308

5 0
2 years ago
What is the process of a decline in interest rates impacts the use of capital and economic growth.
Contact [7]

Answer:

Changes in interest rates can have both positive and negative effects on the markets. Central banks often change their target interest rates in response to economic activity: raising rates when the economy is overly strong, and lowering rates when the economy is sluggish. In economics, capital references non-financial assets used in the production of ... used up immediately in the process of production, unlike intermediate goods ... As a term, it is used to define balanced growth where the goal is to improve human capital ... The interest rate directly impacts economic choices.

Explanation:

Hope this helps!!

7 0
3 years ago
Sunburn Sunscreen has a zero coupon bond issue outstanding with a $11,000 face value that matures in one year. The current marke
7nadin3 [17]

Answer:

1. a) EQUITY = $ 5,036.68

b) DEBT = $ 10,263.32

2. a) EQUITY = $ 4,852.29

b) DEBT = $ 12,247.79

3. PROJECT A

4. Yes

Explanation:

Current market value of the firm’s assets = $13,800

Total Value of Firm = $13800 a-1 NPV of Project A = $1,500 Total Value of Firm if selects Project A = Current Value + NPV of the new Project = $13800 + $1500 = $15,300 Value of debt = $12000 Value of Equity= Value of Firm -Value of Debt = $15300 - $12000 = $3300 a-2 NPV of Project B = $2300 Total Value of firm if selects project B = Current Value + NPV of the new Project = $13800 + $2300 = $16100 Value of Debt = $12000 Value of Equity = Value of Firm -Value of Debt = $16100 - $12000 = $4,100

Therefore,

1. a) EQUITY = $ 5,036.68

b) DEBT = $ 10,263.32

2. a) EQUITY = $ 4,852.29

b) DEBT = $ 12,247.79

3. PROJECT A

4. Yes

8 0
4 years ago
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