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shepuryov [24]
3 years ago
11

Ben invested $20,000 into a money market account and took out $5,000 at the end of year 5. He found out at the end of 10 years t

hat he had as of $50,000 in the account. What is the annual interest rate Ben had earned on this investment
Business
1 answer:
Crazy boy [7]3 years ago
5 0

Answer:

r = 11.5%

Explanation:

Given data:

invested amount $20,000

withrawl amount after 5 year is $5000

Amount at the end of 10th yr is $50,000

present value  is given as

PV =\frac{ A}{(1 + r)^n}

where

A - amount after given n year

PV = \frac{5000}{(1 + r)^5} + \frac{50000}{(1 + r)^{10}}

20,000 =  \frac{5000}{(1 + r)^5} + \frac{50000}{(1 + r)^{10}}

 Let (1 + r)^5 = t

squaring on both side

(1 + r)^{10} = t^2

20,000 =  \frac{5000}{t} + \frac{50000}{t^2}

20 = \frac{5}{t} + \frac{50}{t^2}

20 t^2 - 5t - 50 = 0

solving for t we get

t = 1.711

so, r = 1.711^{1/5} -1 = 0.115 = 11.5\%

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In the North, if the price goes down by $0.40 per pound, then the quantity supplied in the North goes down by 600 pounds per yea
Mumz [18]

Answer:

If the price of peaches goes down by $0.40 in the South, the quantity will decrease by 600 pounds per year.

Explanation:

  • As given that the decrease in price by $0.40 per pound then the quantity in the North goes down by 600 pounds per years so from here we have understand that if the same prices goes down in the South, then the same decrease in pounds per year will occur i.e decrease in price by $0.40 per pound will result in the decrease in the quantity by 600 pounds per year.

6 0
3 years ago
Solving for PMT of an annuity​) To pay for your​ child's education, you wish to have accumulated ​$ at the end of years. To do t
Gemiola [76]

Answer:

$783.87

Explanation:

Complete question <em>"To pay for your​ child's education, you wish to have accumulated ​$10,000 at the end of 8 years. To do​this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 13 percent compounded​annually, how much must you deposit each year to obtain your​goal?"</em>

<em />

NPER = 8

FV = 10,000

Rate = 13%

PV = 0

Future Value of Annuity = PMT(Rate, NPER, PV, FV)

Future Value of Annuity = PMT(13%, 8, 10000, 0)

Future Value of Annuity = 783.8671964727014

Future Value of Annuity = $783.87

So, one must deposit $783.87 each year to reach the goal.

4 0
3 years ago
Explain consumptions of the principal of absolute advantage​
DENIUS [597]

Answer:

The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.

Explanation:

In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.

6 0
3 years ago
Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $1
brilliants [131]

Answer:

  1. 1200 BEPunits
  2. $14,400 BEP dollars
  3. second scenario
  •      1200 BEPunits
  • $14,400 BEP dollars

Explanation:

\frac{Fixed Cost}{contribution margin}  = BEPunits

contribution margin = Sales - Variable Cost

12 - 10 = 2 contribution margin

fixed expenses = 2,400

BEP = 2,400/2 = 1,200 units

<u>Resuming: </u>each unit contributes with $2 dollars therefore it needs to sale  1,200 untis to pay the fixed cost.

units x sales price = sales revenue

1,200 x 12 =  14,400 BEP in Dollars

Also it is posible to get this by using contribution margin ratio

in the BEP formula:

\frac{Fixed Cost}{Contribution Margin Ratio} = BEPdollars

contribution margin/sales price = 2/12 = 1/6

fixed cost /contribution margin ratio = 2,400/(1/6) = 14,400

Scenario were fixed cost increase:

increase in fixed/contribution margin + previous BEP = BEPunits

increase in fixed/contribution margin ratio + previous BEP = BEPdollars

600 fixed cost /contribution margin = 600/2 = 300 more units to our prevous 1,200 total of 1,500

600 fixed cost /contribution margin ratio = 600/(1/6) = $3,600 more sales revenue to our prevous 14,400 total of 18,000

3 0
3 years ago
2. How could you assess whether new office designs are improving the organizational culture
juin [17]

Answer:A proper office layout is the key to a high performance office. This means both good performance from your employees but also your business. Companies that have a great culture are highly sought after by prospective employees and can provide a competitive advantage in both hiring and retaining staff.

Explanation:

7 0
2 years ago
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