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Vitek1552 [10]
3 years ago
13

Carrie wants to go on her family reunion in four years. The cost of the cruise they are planning to take is $5,000. She has foun

d an account with a 7% compounding interest rate, but she is unsure how much money to invest now so that she will have the money she needs in four years. How much should she invest now
Business
1 answer:
Slav-nsk [51]3 years ago
5 0

Answer:

She Should Invest $3,815 now.

Explanation:

Future value is the accumulated value of principal and compounded interest earned in specific period on an specific return rate applied to present value. It is calculated by following formula:

FV  = PV x ( 1 + r )^n

FV = Future Value = $5000

PV  = Present Value = ?

r = return rate = 7%

n = number of years = 4 years

$5000 = PV  ( 1 + 7% )^4

$5000 = PV  ( 1 + 0.07 )^4

$5000 = PV  ( 1.07 )^4

$5000 = PV  x 1.311

PV  = $5,000 / 1.311

PV  = $3,815

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For $50 a month, Rawl Co. visits its customers’ premises and performs insect control services. If customers experience problems
Fofino [41]

Answer:

The answer is: Rawl Co. should recognize the related revenue evenly over the contract year as the services are performed.

Explanation:

According to the conservatism principle, Rawl Co. should record revenues and assets only when you are sure that they will occur. So they should record revenue only as the service is provided on a monthly basis.

It should determine the monthly payment = $540 / 12 = $45 per month.

So at the end of every month, it should recognize $45 as revenue.

4 0
3 years ago
Which of the following statements is FALSE? A) If we increase the fraction invested in the efficient portfolio beyond 100%, we a
Mamont248 [21]

Answer:

B) As we increase the fraction invested in the efficient portfolio, we increase our risk premium but not our risk proportionately.

Explanation:

In this case we increase our risk also proportionaly same as risk premium. There is a trade-off when we face this decisions about portfolios.

5 0
3 years ago
In Finance, _____ because _____. getting a return below your required return is OK; at least you are getting a return Cash is Ki
alexandr1967 [171]

Answer:  Cash is King; it is the only thing you can spend or invest

Explanation:

Finance is all about cash. Its all about getting cash from those who have it to those who need it so that the latter can invest and earn returns for both them and the people who invested the cash.

Simply put therefore, cash is king in finance. It is the only thing that can be invested so that one gets a return or can be spent so that one's needs are fulfilled. Indeed the term finance means the provision of cash which is why the field is so important. It is safe to say that there can be no economic growth without finance.

3 0
3 years ago
A marketing strategy that is focused on a real breakthrough opportunity will usually be successful even if there are obstacles i
Alexeev081 [22]

Answer:

A marketing strategy that is focused on a real breakthrough opportunity will usually be successful even if there are obstacles in getting help from other functional areas in the firm.

 

B. False

Explanation:

By standard definition, a marketing strategy portrays the overall business entity's game plan for convincing prospective consumers and turning them into value customers.  The contents of a marketing strategy include the company's value proposition, key brand messages, data on target customer demographics, and other high-level elements.  It is not a parochial strategy that is just focused on a real breakthrough opportunity.  As a strategy, it requires company-wide support and must derive from the company's overall strategy.  It requires the support of all functions in order to achieve success.

6 0
3 years ago
Regardless of area of expertise, a public school pays all teachers the same annual wage. At $70,000, it hires good teachers in a
const2013 [10]

Answer:

$100,000

Explanation:

Given data :

It is given that a public school pays all the teachers in its school the same annual wage.

The public school hires good teachers in all the areas except science, at a price of = $70,000

The school could hire only poor science teachers because the demand of science teachers are high.

Amount to be paid to hire good science teachers = $90,000

We know,

$\text{marginal cost} = \frac{\text{change in cost}}{\text{change in quantity}}$

Change in cost = $90,000 - $70,000

                          = $20,000

∴  $\text{marginal cost}=\frac{20000}{2}\times 10$

                           =$100,000

4 0
3 years ago
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