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Tems11 [23]
3 years ago
7

You will require $620 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reac

h your savings goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
brilliants [131]3 years ago
8 0

Answer:

Present value of money invested = 485.79 (Approx)

Explanation:

Given:

Future value = $620

Number of years = 5 years

Present value = ?

Rate of interest = 5% = 5/100 = 0.05

Computation of Present value of money invested:

Present value = \frac{Future\ value}{(1+r)^n}\\\\

Present \  value = \frac{Future\ value}{(1+r)^n}\\\\Present \  value = \frac{620}{(1+0.5)^5}\\\\Present \  value = \frac{620}{(1.5)^5}\\\\Present \  value = \frac{620}{1.277628156}\\\\Present \  value =485.786224

Present value of money invested = 485.786224

Present value of money invested = 485.79 (Approx)

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General electric has an up-or-out policy, where key personnel in underperforming units are pressured to boost performance to acc
olasank [31]
This is an example of Tying rewards and incentives directly to the achievement of strategic and  financial targets.
By doing this, general Electric aimed to create an objective measurement for all of its emloyees that motivate them to keep increasing their performance if they hope to stay as an employee in that company. Through this method, Jack Welch managed to increase the company's value for around 4000% during 20 years of his reign.
8 0
3 years ago
Priscilla owns 500 shares of Deltona stock. It is January 1, 2016, and the company recently issued a statement that it will pay
kotykmax [81]

Answer:

Priscilla's homemade dividend per share be in 2017 will be $3.585

Explanation:

In order to calculate what will be Priscilla's homemade dividend per share be in 2017 we would have to use the following formula:

homemade dividend=(Dividend in 2016×(1+Required rate))+Dividend in 2017

homemade dividend=($1×(1+8.5%))+$2.50

homemade dividend=$1.085+$2.50=$3.585

Priscilla's homemade dividend per share be in 2017 will be $3.585

7 0
3 years ago
​allison's auto art is a company that applies pinstripes to vehicles.​ allison's cost for a basic 1minus−color pinstriping job i
Lunna [17]
In economics, marginal cost is the additional expenditure or cost you incur when you buy another more quantity of the product. When Allison bought the <span>1minus−color application, she spent a total of $130.

$35 + $95 = $130

When she upgraded to 3minus-color application, her cost now increased to 

$175 + $40 = $215

Now, as mentioned, marginal cost is the additional cost incurred when buying one more quantity of the same product. Therefore, marginal cost = </span>Δcost/Δquantity. Thus,

Marginal Cost = ($215-$130)/(3-1)
Marginal Cost = $42.5

The marginal cost is $42.5 per color application.
6 0
3 years ago
What is the future value of $15,000 received today if it is invested at 7.5% compounded annually for five years
Firlakuza [10]

Answer:

the future value is $21,534.44

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

where,  

Present value is $15,000

The Interest rate is 7.5%

And, the number of the year is 5 years

Now put these values to the above formula

So, the future value is  

= $15,000 × (1 + 0.075)^5

= $21,534.44

Hence, the future value is $21,534.44

6 0
3 years ago
23. Airlines that engage in price discrimination charge higher prices to business travelers because their _____ is more _____ th
MrMuchimi

Answer:

demand; inelastic

Explanation:

Price discrimination is when a seller charges different prices for the same product in different markets. Price discrimination is usually practised by monopolists. The aim of price discrimination is to eliminate consumer surplus.

A seller would usually charge a higher price to a consumer whose demand is price inelastic. This means that the quantity demanded is less sensitive to changes in price.

If the seller charges a higher price to a consumer whose demand is price elastic, the consumer would reduce the quantity demanded as a result of the rise in price and the total revenue of the seller would fall.

I hope my answer helps you

5 0
3 years ago
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