1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LekaFEV [45]
3 years ago
10

Suppose you are committed to owning a $185,000 ferrari. if you believe your mutual fund can achieve an annual return of 10.5 per

cent, and you want to buy the car in 10 years on the day you turn 30, how much must you invest today? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) amount to be invested
Business
1 answer:
Tresset [83]3 years ago
5 0

Answer:  I must invest <u>$68,163.04</u> today to buy a Ferrari 10 years from now.

We can interpret the data in the question as follows.

We need $185000 after 10 years, so this is the Future Value of an investment made today. We have to calculate the amount to be invested.

We need to use the Present Value formula in order to find the amount to be invested.

The formula is :

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

Substituting the values we get,

\mathbf{PV = \frac{185000}{(1+0.105)^{10}}}

\mathbf{PV = \frac{185000}{2.714080847}}

\mathbf{PV = 68163.03952}

You might be interested in
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
BlackZzzverrR [31]

Answer:

The answer is $243,000

Explanation:

The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.

To find this closing inventory, we need to find the gross profit first and then cost of sales.

To find gross profit:

Gross profit margin=gross profit ÷sales.

Gross profit margin is 20% or 0.2

Sales is $690,000

Therefore, gross profit is:

0.2 x $690,000

=$138,000

To find cost of sales:

Gross profit = sales - cost of sales.

Gross profit is $138,000

Sales is $690,000

Therefore, cost of sales is

$690,000 - $138,000

=$552,000.

And finally to get closing inventory:

Cost of sales = opening inventory + purchases - closing inventory.

Cost of sales = $552,000

Opening inventory = $140,000

Purchases = $655,000

Closing inventory = $140,000+$655,000-$552,000

=$243,000.

6 0
3 years ago
At the high level of activity in November, 12000 machine hours were run and power costs were $22000. In April, a month of low ac
NISA [10]

Answer:

The estimated fixed cost element of power costs is $10,000

Explanation:

For computing the fixed cost first we have to calculate the variable cost per unit which is shown below:

= (High power cost -  low power cost) ÷ (High machine hours - low machine hours)

= ($22,000 - $15,000) ÷ (12,000 - 5,000)

= $7,000 ÷ 7,000

= $1

Now the fixed cost would be

= (High power cost) - (high machine hours × variable cost per unit)

= $22,000 - 12,000 × $1

= $22,000 - $12,000

= $10,000

4 0
3 years ago
When the allowance method of recognizing uncollectible accounts is used, the entries at the time of collection of a small accoun
slavikrds [6]

The allowance method of recognizing uncollectible accounts used is one where there is no effect on net income.

<h3>What is the allowance method?</h3>

This is known as a method that entails the use of or the act of setting aside a kind of reserve for bad debts that are seen or foretell to take place in the future.

The reserve is one that is based on a percentage of the sales gotten in a reporting period, in terms of those adjusted for the risk linked with some customers.

Learn more about allowance method  from

brainly.com/question/6993526

6 0
2 years ago
Identify the function in the organisation you have chosen​
mina [271]

Answer:

Determination of activities,

Grouping of activities,

Allotment of duties to specified persons,

Delegation of authority,

Defining relationships, and.

The co-ordination of various activities.

8 0
2 years ago
What is the correct sequence of the five phases in the sdlc
Mariana [72]

Answer:

the common sequence is

Explanation:

planning, analysis, design, implementation, and maintenance

4 0
2 years ago
Read 2 more answers
Other questions:
  • Suppose NanoSpeck, a biotechnology firm, is selling stocks to raise money for a new lab—a practice known as finance. Buying a sh
    15·1 answer
  • Using the information below, calculate net income for the period: Sales revenues for the period $ 1,318,000 Operating expenses f
    13·1 answer
  • Which costs are paid by the loan application fee?
    15·2 answers
  • Calls arrive at Lynn Ann​ Fish's hotel switchboard at a rate of 2.5 per minute. The average time to handle each is 20 seconds. T
    10·1 answer
  • It is estimated that the net cash flows to be received from the copyright will be $63,000, and its fair value is $59,850. The ac
    10·1 answer
  • A decrease in the demand for eggs due to changes in consumer tastes, accompanied by a decrease in the supply of eggs as a result
    11·1 answer
  • Crane Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows:
    12·1 answer
  • Define common stock.​
    5·2 answers
  • In the model of mass-mediated communication, the: Select one: producers of the message control the reception of the content prod
    15·1 answer
  • covid-19 pandemic of 2020, e-tronics began weighing options for controlling or cutting costs due to lower revenue and profitabil
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!