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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

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notka56 [123]

Answer: d. Sell 210 shares and loan out the proceeds at 8 percent

Explanation:

Because the Firm wants to use a Debt to Equity Capital structure instead of an All Equity structure, she can lend money out at the company interest rate to NEGATE the conversion.

She can do this by selling 35% of her portfolio and loaning it out at 8%

35 % of her Portfolio would be,

= 0.35 * 600

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So she can sell 210 shares and loan at the proceeds at 8% to offset the Company's conversion

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4 years ago
TB MC Qu. 7-77 Corbel Corporation has two divisions: Division A and ... Corbel Corporation has two divisions: Division A and Div
irina1246 [14]

Answer:

Corbel Corporation's common fixed cost  is $41,650

Explanation:

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($231,000 * 35%)

Less: Traceable fixed cost              $59,700

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3 0
4 years ago
What does the price elasticity of supply measure? Click or tap a choice to answer the question. how income affects spending the
Zolol [24]

You didn't put all the alternatives, but I understand economics and I know exactly that concept.

Supply price elasticity measures how price changes impact the supply of goods and services. If the elasticity of supply is elastic, it means that supply is very sensitive to price changes. If the price goes down even slightly, the supply of goods will fall sharply. If the price increases, even if little, the offer will increase much. Conversely, if supply is inelastic, price changes will have little effect on supply for the good. If the price goes down, there will be little impact on the supply of the good. If the price increases, there will also be little impact on supply.

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Jose and Maria work at a restaurant. Jose can make either 10 pancakes or 4 waffles; Maria can make either 8 pancakes or 2 waffle
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Answer:

The cost of opportunity is 4 pancakes.

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The cost of opportunity is by definition the amount of things you don't do or buy, because of choosing doing or buying something else. In this case, Maria can make:

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This means that at every moment, she can choose to make or 8 pancakes or 2 waffles, but not both. If we continue with this logic, in the time she could make 1 waffle, she could have chosen to make 4 pancakes. This is her cost of opportunity.

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During 2014, carlita's competitor farside had double the sales of carlita, but it also earned a gross margin of $30,000. what wa
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The gross margin percentage is 12.5%.

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= ($30,000 / $240,000) * 100

= 12.5%

Learn more about gross margin here: brainly.com/question/8189926

#SPJ4

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