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FrozenT [24]
3 years ago
13

Jude wants to receive $1,100 at the beginning of each of the next eight years. If his opportunity cost rate is 9 percent compoun

ded annually, how much must he deposit in an account today? Use a financial calculator to make the calculation.
Business
1 answer:
alukav5142 [94]3 years ago
3 0

Answer:

$6,636.25

Explanation:

The amount which will be deposited by the Jude today in order to receive the $1,100 in the beginning of each of next eight years shall be determined through present value of annuity formula, which is given as follow:

Amount to be deposited today=R+R[(1-(1+i)^n-1)/i]

Where

R=amount to be received at start of year=$1,100

i=interest rate compounded annually=9%

n=number of years involved=8

Amount to be deposited today=1,100+1,100[(1-(1+9%)^7/9%]

                                                   =$6,636.25

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In a production operation of an electronics firm, a company manufactures I/O circuit chips that is used in a final assembly proc
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defective

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Xavier is using a query that includes a LIKE comparison operator with the value of A[a-n]*. Which option would match this operat
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3 years ago
Read 2 more answers
Folsom Fashions sells a line of women's dresses. The company uses flexible budgets to analyze its performances. The firm's perfo
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Answer is below in attachment

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8 0
3 years ago
has a monthly target operating income of $ 15 comma 000. Variable expenses are 70​% of​ sales, and monthly fixed expenses are $
seraphim [82]

Answer:

Margin of safety=55.6%

Explanation:

The formula for the operating income is as folows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=Answer:

Explanation:

The formula for the operating income is as follows;

operating income=Sales revenue-total cost

where;

operating income=$ 15,000

Sales revenue=S

total cost=variable cost+fixed cost

variable cost=70% of S=(70/100)×S=0.7 S

fixed cost=$12,000

replacing;

15,000=S-(0.7 S+12,000)

15,000+12,000=0.3 S

27,000=0.3 S

S=27,000/0.3

S=$90,000

Current sales=$90,000

The formula for margin of safety is as follows;

Margin of safety=(Current sales level-break even point sales level)/current sales levels

At break even,

Operating income=0

0=S-(0.7 S+12,000)

0=S-0.7 S-12,000

0.3 S=12,000

S=12,000/0.3

S=40,000

Break even sales=$40,000

replacing;

Margin of safety=((90,000-40,000)/90,000}×100

Margin of safety=55.6%

7 0
3 years ago
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