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AURORKA [14]
3 years ago
11

On a whim, you purchased a scratch-off lottery ticket at the gas station. it must have been your lucky day because you won $2,50

0,000. being logical and rational you decide to invest the money at 3% for 14 years until you are ready to start a family. at the end of 14 years, how much will your investment be worth?
Business
1 answer:
jok3333 [9.3K]3 years ago
3 0

Answer: The winnings of $2,500,000 will grow to $3,781,474.31 if it is invested at 3% for 14 years, compounded annually.

Assuming that I'm logical and rational, I will invest the $2,500,000 at 3% for 14 years in an instrument that gives me compound interest that is compounded annually, as that will give me more money as compared to investing at simple interest.

We use the following formula to determine the Future Value of an investment:

FV = PV * (1+r)^{n}

where

FV = Future Value of an investment

PV = Present Value of an investment or amount invested

r = rate of interest per period

n = number of compounding periods for which the money is invested.

Since interest is compounded annually, the number of compounding periods is 14.

Substituting the values from the question in the equation above we get,

FV = 2500000 * (1+0.03)^{14}

FV = 3781474.31

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A nation has a population of 300 million people. Of these, 80 million are retired, in the military, in institutions, or under si
ValentinkaMS [17]

Answer:

Unemployment rate = 4.55%

Explanation:

We know,

Unemployment rate = Number of unemployed people in a country ÷ Total labor force.

Given,

Number of unemployed people in a country = 10 million

Labor force = Number of unemployed people in a country + Number of employed people in a country

Therefore, Labor force = 10 million + 210 million = 220 million

Putting the values into the above formula, we can get,

Unemployment rate = (10 million ÷ 220 million) × 100

Unemployment rate = 0.04545 × 100

Unemployment rate = 4.55%

8 0
3 years ago
Example 31: S borrows 5,00,000 to buy a house. If he pays equal instalments for 20 years
Veronika [31]

Answer:

$58.729

Explanation:

To find the answer, we need to use the present value of an annuity formula.

The formula is:

P = X [(1 - (1 + i)^-n) / i ]

Where X is the annual instalment

P is the present value of the investment (500,000 in this case)(

i is the interest rate (10% in this case)

and n is the number of periods (20 years in this case)

We now plug the amounts into the formula:

500,000 = X [ (1 - (1 + 0.10)^-20) / 0.10 ]

500,000 = X [8.51356]

500,000 / 8.51356 = X

58,729 = X

So the value of the equal annual instalment will be $58.729

7 0
3 years ago
Providing an analysis for a company regarding adding a particular product line, retracting sales markets, or dealing with risks
strojnjashka [21]

Answer:

The correct answer is True.

Explanation:

The managerial accountant has to become a key pillar in the correct measurement of business performance, in the decision making of senior management and in the development of company strategies, to help it, not only to survive but to generate competitive advantages, in a globalized business world, increasingly growing and hostile.

Because, in addition to being a function of extreme importance, for any business organization, it faces tremendous challenges, such as technological changes and the intensification of international competition. Business leaders and executives are currently in the process of looking for new ways to manage and run their companies. However, it is not only the magnitude of the changes, which causes problems for organizations, but the increasing speed with which they are going.

In fact, Management Accounting systems emerged to provide information, support management and control of companies, and to promote efficiency in the organization.

------

NOTE: If you need to extend the explanation given, you can make a comment or add a new question. I will be very pleased to help you.

6 0
3 years ago
The AFN equation assumes that the ratios of assets and liabilities to sales remain constant over time. However, this assumption
Vera_Pavlovna [14]

Answer:

The answer is A True

Explanation:

AFN which is "additional funds needed" is a concept used commonly in business looking to expand operations and influence. Since a business that seeks to increase its sales level will require more assets to meet that stated goal, some provision must be made to accommodate the change in assets. AFN is a way of calculating how much of new funds will be needed, so that the firm can realistically look at whatever or not they will be able to generate the additional funds and therefore be able to achieve the higher sales level.

Economies of scale are cost advantage reaped by companies when production becomes efficient. Firms can achieve economies of scale by increasing production and lowering cost. This does not involve calculating of new funds needed for a realistic expansion of the firm.

Lumpy assets are assets that cannot be acquired in small increments but must be obtained in large, discrete units.

Excess Capacity indicates to a situation in which the demand for a company's goods and services is less than its production capacity. This situation can arise in any firm during  the low point in a seasonal industry, where capacity is maintained to match the peak part of the season.

A constant ration can not be meet in this condition of economies of scale, lumpy assets, and excess capacity as these conditions  can not be used in raising funds or additional funds that are needed by the industry in its expansion.

8 0
3 years ago
Able, Baker, and Charlie co-own property. Charlie dies, leaving behind a will that transfers his one-third interest in the prope
VMariaS [17]

Answer:

Joint ownership

Explanation:

In a joint ownership, when a partner dies, his interest is passed on to the surviving partners.

This case scenario is a joint ownership

3 0
3 years ago
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