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
Mkey [24]
3 years ago
7

On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provi

de $80,000 to send his son to college (four years from now). The investment account will earn 8 percent, which will be added to the fund each year-end. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided.)
Business
1 answer:
const2013 [10]3 years ago
4 0

Answer:

The requirement of the question is as below:

How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)  

What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)

Alan deposit on January 1 is $ 58,802.39  

Interest for four years is $21,197.61

Explanation:

The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:

PV=FV*(1+r)^-n

PV is the present value

FV is the worth of the investment in 4 years from now which is $80,000

r is the rate of return of 8%

n is the number of years of investment which is 4 years

PV=$80,000*(1+8%)^-4

PV=$80,0008(1+0.08)^-4

PV=$80,000*(1.08)^-4

PV =$ 58,802.39  

interest for four years=FV-PV

interest for four years=$80,000-$ 58,802.39  

                                    =$21,197.61

You might be interested in
Sara wants to start her own business. She is not sure if she wants to be a sole proprietor or get a partner. She asks a financia
lorasvet [3.4K]

Answer:

B) She has to share all of the profits with the partner.

Explanation:

A partnership is a business owned by two or more parties while a sole proprietorship is owned by one person. In the former, decisions are made jointly and the process might take long since all partners must consent to it. Another disadvantage is that all profits are shared between or among all partners unlike a sole proprietorship where the owner takes all the profits.

8 0
3 years ago
Read 2 more answers
Juan, the owner of quality catering, is driven by competition. he is very focused on meeting deadlines and quality, and on deliv
Gnoma [55]
I would say that quality catering has a production-oriented culture where meeting production targets on time is prime and the fact that the manager rewards the meeting of those targets is good but he shouldn't ignore the need for employee development and satisfaction as that could have an adverse effect in the long term. 
3 0
3 years ago
Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar
meriva

Answer:

$ 102,100

Explanation:

Based on the scenario been described in the question the incremental Analysis for replacement of old equipment:

Cost of New used lift

$ 190,500

Saving in Incremental Cost of Repair of old lift

$ (45,000)

Reduction in Annual operating expenses = $25,600 * 6 years

$ (153,600)

Annual Rent revenue from new used lift = $11,000*6 years

$ (66,000)

Sale price of old lift

$ (28,000)

Saving in Incremental Costs

$ (102,100)

Net income increase

$ 102,100

Hence, the net income shall increase by $102,100 if the old liftis replaced.

3 0
3 years ago
You sold two EUR futures contract at the closing price on 3/01. Each EUR futures contract requires the delivery of EUR125,000. S
Lyrx [107]

Answer:

What

Explanation:

4 0
3 years ago
During a certain six-year period, the consumer price index (CPI) increased by 50%. But during the next six-year period, it incre
Westkost [7]

The answer is Inflation

7 0
3 years ago
Read 2 more answers
Other questions:
  • For each of the following statements, indicate whether it is true, false, or uncertain and explain why. Average total cost is al
    13·1 answer
  • Here are some facts about the relationship between three goods: Firm X produces a good that it sells to Firm Y. Firm Y produces
    5·1 answer
  • Buyers in country X prefer to use the older, cheaper version of Firm A's product although it is bulkier and less user-friendly.
    10·1 answer
  • Why does an unsecured loan have a higher interest rate than a secured loan?
    15·1 answer
  • A commercial building with a market value of $200,000 has an insurance policy with an 80 percent coinsurance clause. The owner c
    6·1 answer
  • Chrissy receives 200 shares of chevron stock as a gift from her father. the stock cost her father $9,000 10 years ago and is wor
    13·1 answer
  • Hayao is speaking to investors about a project his team has been working on. The project has been going well, but whether it con
    9·1 answer
  • On July 1, 2017, Crane Inc. made two sales.
    8·1 answer
  • I need to solve this question with a formal
    11·1 answer
  • 1. ¿que tiene que ver el gobierno populista con el universal basic income? 2. ¿es el UBI bueno para la economía?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!