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Goshia [24]
3 years ago
5

You want to purchase a motorcycle 4 years from now, and you plan to save $3,500 per year, beginning immediately. You will make 4

deposits in an account that pays 5.7% interest. Under these assumptions, how much will you have 4 years from today
Business
1 answer:
Andreyy893 years ago
8 0

Answer:

You will have $16,111.99

Explanation:

a) Data and Calculations:

Annual savings $3,500

Years = 4

Interest rate = 5.7%

Future value using finance calculator:

FV (Future Value) $16,111.99

PV (Present Value) $12,907.71

N (Number of Periods) 4.000

I/Y (Interest Rate) 5.700%

PMT (Periodic Payment) $3,500.00

Starting Investment $0.00

Total Principal $14,000.00

Total Interest $2,111.99

b) Your annual savings of $3,500 with 4 deposits will have a future value of $16,111.99 compounded at 5.7% for 4 years with a total principal of $14,000 ($3,500 * 4).

You might be interested in
Hudson Co. reports the contribution margin income statement for 2019.
Studentka2010 [4]

Answer:

1. Contribution Margin = $576,000

2. Contribution Margin ratio = 25%

3. Break-even point = 5,400 units

4. Break-even point in sales dollars = $1,296,000

Explanation:

Requirement 1

If Hudson Company raises its selling price to $240 per unit, the contribution margin format income statements will be as follows:

                             HUDSON CO.

      Contribution Margin Income Statement

          For Year Ended December 31, 2019

Sales Revenue ($240 × 9,600 units)    =  $2,304,000

<em>less</em>: variable expense                         <u>  =  $(1,728,000)</u>

($180 × 9,600 units)

Contribution Margin                              =     $576,000

It increases due to the rise in sales price.

Requirement 2

We know,

Contribution Margin ratio = (contribution margin ÷ sales revenue) x 100

Given,

From requirement 1, we get, Contribution Margin = $576,000

And total sales revenue = $2,304,000

Putting the value into the above formula, we can get-

Contribution Margin ratio = ($576,000 ÷ $2,304,000) × 100

or, Contribution Margin ratio = 0.25 × 100

Therefore, Contribution Margin ratio = 25%

Requirement 3

We know,

Break-even point (in Units) = Fixed costs ÷ contribution margin per unit.

Given,

Fixed costs = $324,000

contribution margin per unit = sales price per unit - variable cost per unit

contribution margin per unit = $240 - $180

contribution margin per unit = $60

Putting the value into the above formula, we can get-

Break-even point (in Units) = $324,000 ÷ $60

Break-even point (in Units) = 5,400 units

It means, if Hudson company sells 5,400 units, there will be no loss or no profit.

Requirement 4

We know,

Break-even point in sales dollars = Break-even point sales in units × sales price per unit

Given,

From requirement 3, we get the break-even point sales in units = 5,400 units

Sales price per unit = $240

Putting the value into the above formula, we can get-

Break-even point in sales dollars = 5,400 units × $240

Therefore, Break-even point in sales dollars = $1,296,000

It means, if the total sales of Hudson company is $1,296,000, the company will receive no profit. It will not incur any loss too.

8 0
2 years ago
Which kind of decisions involving resources must producers of goods and services make? ECONOMICS.
yawa3891 [41]
A.Allocating is the answer
5 0
3 years ago
Read 2 more answers
Lauren has chosen "Influence consideration" as the marketing objective in her Google Display Ads campaign. Which two targeting o
Maksim231197 [3]

ANSWER:

The correct answer are Custom Intent audiences and Similar Audiences.

STEP-BY-STEP EXPLANATION:

Custom Intent audiences: In a nutshell, custom intent audiences are a more granular form of targeting that allows you to target people who are in the market for the specific products and services you are offering. Custom intent audiences are available on the display network only.

Similar audiences is a targeting feature based on first party data lists, most commonly remarketing lists, that helps you expand the reach of your best-performing audiences by targeting new users with similar characteristics to your site visitors.

6 0
2 years ago
Please somebody help me
OLEGan [10]

1.Ph.D

2. training

3. bachelors degree

8 0
3 years ago
Which data representation system utilizes both letters and numbers? binary decimal hexadecimal octal
musickatia [10]

Answer:

The correct answer is letter "C": hexadecimal.

Explanation:

The hexadecimal numeral system is composed of ten digits from 0 to 9 and six letters from the English alphabet from A to F. Letter A is given the 10 value and F values 15. Though, the decimal system composed of numbers from 0 to 9 is the most used in calculations and the binary system (composed by 0 and 1) for programming.

6 0
2 years ago
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