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Slav-nsk [51]
3 years ago
15

Newman Finley wishes to become a millionaire. His money market fund has a balance of $296,375 and has a guaranteed interest rate

of 6%. How many years must Newman leave that balance in the fund in order to get his desired $1,200,000?
Business
1 answer:
Rus_ich [418]3 years ago
3 0

Answer:

Investment period = 24 years

Explanation:

The total amount that an investment made today would become  if invested at a particular rate for certain number of years is known as the future value.

The $1,200,000 is the desired future value, the $296, 375 is the present value and the 6% is the interest rate.

FV = PV × (1+r)^n

1,200,000 = 296,375 × (1.06)^(n)

(1.06)^(n) = 1200000/96,375

(1.06)^(n) =4.048924504

find the log of both sides

n log 1.06= log 4.048924504

n= log 4.048924504/log 1.06

n = 24

It will take 24 years

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BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its
sineoko [7]

Answer:

The contribution margin ratio will increase.

Explanation:

Giving the following information:

BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.

Contribution margin ratio= (selling price - unitary variable cost)/selling price

New Contribution margin ratio= (120 - 58)/120= 0.52

Old Contribution margin ratio= (120 - 65)/120= 0.46

5 0
3 years ago
Madrigal Corporation purchased a new machine for $120,000. The machine has an estimated useful life of 10-years with no salvage
GenaCL600 [577]

Answer:

The annual cash flow using the gross book value method is $18,000

Explanation:

In order to calculate the annual cash flow using the gross book value method we would have to calculate the following formula:

annual cash flow=( value of new machine*ROI)/100

Value of the new machine=$120,000

ROI=15%

annual cash flow= ($120,000* 15%)/100 =

annual cash flow=$18,000

The annual cash flow using the gross book value method is $18,000

7 0
3 years ago
Read 2 more answers
You own a portfolio consisting of the following​ stocks:
kykrilka [37]

Answer:

expected return is 15.8%

portfolio beta is 94.5%

Explanation:

a. EXPECTED RETURN: to calculate the the expected return of, we simply multiply each of the stock percentage by its expected return and then sum it up. thus we have

0.2×0.16 + 0.3×0.14 + 0.15×0.2 + 0.25×0.12 + 0.1×0.24= 0.158

Multiply the result by 100% yields 15.8%

B. PORTFOLIO BETA: to calculate the portfolio beta, we simply multiply the weighted average of the stock percentage by the portfolio beta. thus we have;

0.2×1 + 0.3×0.85 + 0.15×1.2 + 0.25×0.6 + 0.1×1.6= 0.945

multiply the result by 100% yields 94.5%

6 0
3 years ago
In order to make a résumé persuasive and not self-centered, omit the use of the word _____.
ra1l [238]
D. All of the above

Omitting I, me, and my will make the resume more effective.
8 0
3 years ago
Read 2 more answers
As a project manager, the project is your number one priority. However, you have team members with competing priorities from oth
kaheart [24]

As per the given scenario, the interpersonal skill that should be used is negotiating effectively.

<h3>Who is a project manager?</h3>

A project manager refers to the person who is in overall charge of the planning and execution of a particular project.

As a project manager, the project is on number one priority. The interpersonal skill that is mainly used in this scenario is negotiating effectively.

Learn more about project manager here:

brainly.com/question/15610382

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4 0
2 years ago
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