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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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2. Find the lump sum that must be set aside today to make quarterly payments of $9,000 for 10 years, assuming 8% compounded quar
Svetach [21]

Answer:

i need help

Explanation:

5 0
2 years ago
Cash $ 8,600 Accounts receivable 16,500 Office supplies 2,000 Trucks 173,000 Accumulated depreciation—Trucks $ 35,638 Land 75,00
True [87]

Answer:

Net Income $23,588

Retained Earnings $140,088

Explanation:

To calculate the value of the retained earning at the end of the next year it's necessary to find the income of the current year and then deduct the dividends paid during the year, the remaining value adds to the retained earnings.

This value that we get of retained earnings at the end of the year, it's the value missing at the end of the year to explain the accounting equation of Assets = Liabilitites + Equity

Income Statement Blink

Trucking fees earned $ 135,000

Depreciation expenses -$ 22,987

Salaries expenses -$ 63,315

Office Supllies expenses -$ 13,500

Repair expenses -$ 11,610

Income $ 23,588

Retained Earnings Report  

Opening retained earnings $ 135,500

Add: Net Income $ 23,588

Subtotal $ 159,088

Less: Dividens -$ 19,000

Total $ 140,088

BALANCE SHEETS Dec 31

Cash  $ 8,600

Accounts Receivable  $ 16,500

Office Supplies  $ 2,000

TOTAL CURRENT ASSETS  $ 27,100

Equipment  $ 173,000

Accum Depreciation Truck  -$ 35,638

Land  $ 75,000

TOTAL NONCURRENT ASSETS  $ 212,362

TOTAL ASSETS  $ 239,462

Accounts Payable  $ 12,600

Interest Payable  $ 3,000

TOTAL CURRENT LIABILITIES  $ 15,600

Long Term Notes Payable  $ 52,000

TOTAL NONCURRENT LIABILITIES  $ 52,000

TOTAL LIABILITIES  $ 67,600

Common Stock  $ 31,774

<u>Retained Earnings  $ 140,088 </u>

TOTAL EQUITY  $ 171,862

7 0
3 years ago
The price of a certain property increased by 10% in the first year, decreased by 20% in the second year, and increased by 25% in
Fynjy0 [20]

Answer:

Let suppose the value of property is 100 dollars currently.

The price of a certain property increased by 10% in the first year, means the value of property at this point is (100 *1.1) 110 dollars.

In the second year the value of property decreases by 20% mean the value of property at this point is (110*0.80) 88 dollars, that is 80% of previous value determine.

In the third year the value of property increases by 25% mean the value of property at this point is (88*1.25) 110 dollars that is 25% more than previous value determine.

So in second year the value in dollars is 88 dollars.

3 0
3 years ago
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