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3 years ago

Given an interest of $11,900 at 6% for 50 days (ordinary interest) calculate the principal

1 answer:

5 0

I = Prt
I = (11900)(0.06)(0.14) = 99.96

50 days needs to be converted to years, so do 50/365 to get 0.14. That's your amount in years.

So, your interest is $99.96

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Cindy Medavoy will invest $7,990 a year for 19 years in a fund that will earn 10% annual interest. Click here to view factor tab

Rudik [331]

Answer:

The correct answer for future value if first payment occur today is $449,645.24 and if first payment occur at the end of year is $408,761.13.

Explanation:

According to the scenario, the given data are as follows:

Payment (pmt) = $7,990

Rate of interest (r) = 10%

Time (n) = 19 years

So, we can calculate the future value by using following formula:

Future Value ( if payment occurs today) :

FV = Pmt (((1+r)^n - 1) ÷ r) x (1+r)

By putting the value:

= $7,990 ((( 1+ 0.10)^19 -1) ÷ .10) × ( 1 + 0.10)

= $7,990 ( 51.16) × ( 1.10)

= $449,645.24

Future Value ( if payment occurs at the end of year):

FV = Pmt x ((1+r)^n -1)) ÷ r)

= $7,990 ((1 + 0.10)^19 -1) ÷ 0.10)

= $7,990 × 51.16

= $408,761.13

4 0

3 years ago

An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has

aliya0001 [1]

Answer:

Years to maturity Price of Bond C Price of Bond Z

4 $1,084.42 $711.03

3 $1,065.93 $774.31

2 $1,045.80 $843.23

1 $1,023.88 $918.27

Explanation:

Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.

The price of each bond of the bond can be calculated using the following excel function:

Bond price = -PV(rate, NPER, PMT, FV) ........... (1)

Where;

rate = Yield to maturity of each of the bonds

NPER = Years to maturity

PMT = Payment = Coupon rate * Face value

FV = Face value

Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:

Years to maturity Price of Bond C Price of Bond Z

4 $1,084.42 $711.03

3 $1,065.93 $774.31

2 $1,045.80 $843.23

1 $1,023.88 $918.27

Download xlsx

4 0

3 years ago

An alternative to CFL bulbs and incandescent bulbs are light-emitting diode (LED) bulbs. A 100 W incandescent bulb can be replac

mariarad [96]

Answer:

It cost $5.84 to run the LED bulb for one year if it runs for five hours a day.

Explanation:

E = Pt

= (16W)(365*5)

= 29200Wh

= 29.2 kWh

cost of operation = E($0.2/kWh)

= (29.2 kWh)($0.2/kWh)

= $5.84

Therefore, It cost $5.84 to run the LED bulb for one year if it runs for five hours a day.

8 0

3 years ago

Select the incorrect statement regarding costs and expenses.Multiple ChoiceExpenses are incurred when assets are used to generat

d1i1m1o1n [39]

Answer:

Manufacturing-related production costs are initially recorded as expenses

Explanation:

Cost is defined as an amount that has to be paid or spent to buy or obtain something. Cost can be specific, like, "What is the cost of a particular product?" or it can be a penalty, like consider the cost of missing the event.

Expenses sounds similar to that of cost: an amount of money that must be spent especially regularly ro pay for something.

Manufacturing cost are considered to as those that are spent to transform materials into finished goods. Manufacturing costs include direct materials, direct labor, and factory overhead.

Manufacturing cost are also known as factory cost or production cost

3 0

3 years ago

Read 2 more answers

Northern Organic Farms is considering a project which will produce annual sales of $975,000 and increase cash expenses by $848,0

stealth61 [152]

Answer:

B) $114,000

Explanation:

To calculate the operating cash flows using the top down approach we can use the following equation:

operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid

operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000

I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.

5 0

3 years ago