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
lisabon 2012 [21]
2 years ago
13

Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari (see Question 9). If you believe your m

utual fund can achieve a 10.25 percent annual rate of return, and you want to buy the car in 10 years on the day you turn 30, how much must you invest today?9. Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari (see Question 9). If you believe your mutual fund can achieve a 10.25 percent annual rate of return, and you want to buy the car in 10 years on the day you turn 30, how much must you invest today?a. PV * (1 + .1025)^10 = $150,000b. PV * (1.1025)^10 = $150,000c. PV * (2.65239)= $150,000d. PV = $150,000/2.65239e. PV = $56,533.42
Business
1 answer:
luda_lava [24]2 years ago
3 0

Answer:

All the options written are the steps involved in solving the problem. The formula that would be used is compounding formula because we have future value which is $150,000 and rate of return which is 10.25%. Furthermore, here n is 10 years time.

The formula is:

Future Value = Present Value * (1 + r)^n

$150,000 = Present Value * (1.1025)^10

$150,000 = Present Value * 2.6524

$150,000 / 2.6524 = Present Value

Present Value = $56553

So the amount that we should deposit in mutual funds today to buy Ferrari is $56553. The difference is due to rounding off.

You might be interested in
The demand for grapesgrapes is highest during summer and lowest during winter. Yet grapegrape prices are normally lower in summe
anastassius [24]

Answer:

The correct answer is: D. The supply increases more than the demand increases.

Explanation:

The law of supply and demand is the basic principle on which a market economy is based. This principle reflects the relationship between the demand for a product and the quantity offered of that product taking into account the price at which Sell ​​the product.

Thus, depending on the price in the market of a good, the bidders are willing to manufacture a certain number of that good. Like the plaintiffs they are willing to buy a certain number of that good, depending on the price. The point where there is a balance because the plaintiffs are willing to buy the same units that the bidders want to manufacture, for the same price, is called the market equilibrium or breakeven point.

According to this theory, the law of demand states that, keeping everything else constant, the quantity demanded of a good decreases when the price of that good increases. On the other hand, the law of supply indicates that, keeping everything else constant, the quantity offered of a good increases when its price does.

6 0
3 years ago
1. The following are categories of accounts reported in the financial statements: A. Current Assets E. Long-Term Liabilities B.
kondaur [170]

Answer:

E, B, D, C, A, G, H, F

Explanation:

Bonds Payable - <em>Long-term liabilities</em>

Buildings - <em>Fixed assets</em>

Accrued Liabilities - <em>Current liabilities</em>

Intangibles - <em>Intangible assets</em>

Inventory - <em>Current assets</em>

Unearned Rent Revenues - <em>Revenue</em>; advanced paid rentals

Accumulated Depreciation - <em>Expense</em>

Retained Earnings - <em>Stockholder's equity</em>

3 0
3 years ago
According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in __________ make f
Oxana [17]

Answer:

C

Explanation:

According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in economic growth rates make for large differences in real GDP per capita over several decades, assuming the same growth of population for each country.

For small countries ( less population and same growth of population over the years) even small growth rates makes a large change in  real GDP per capita over the years.

3 0
3 years ago
What is the difference between a checking and savings account?
Nat2105 [25]

A checking account is what you would use to make everyday purchases, and what you usually put the majority of your check into. Savings accounts are used to save money over periods of time. A percentage of your check may go in a savings account that you don't use.

8 0
3 years ago
Melrose Company has an investment in bonds issued by Roscoe Industries that are classified as available-for-sale securities. The
Andrews [41]

Answer:

c. Debit to Fair value adjustment for $30,000

Explanation:

The first step of accounting process is Journal entry and it is made to record the transactions for process of book keeping, it defines the accounts involved and effects of  transactions on the account by debit or credit.

As the bond price is amortized earlier by 5,000 then its net realizable value was $195,000 ( $200,000 - $5,000 ). on December 31, year 3 the fair value adjusted to $225,000. so the adjusted value will be $30,000 ( $225,000 - $195,000 ). The journal entry is as follow  

                                                                    Dr.               Cr.

Dec 31, year 3

Fair value adjustment account              30000

Unrealized gain on available for sale securities        30000

4 0
2 years ago
Other questions:
  • Without specializing, the total output for both countries after two days would be 48.
    15·2 answers
  • Assuming that the company has retained earnings of "$86,000", all of which is to be paid out in dividends, and that preferred di
    9·1 answer
  • ___________________ are cost that make customers reluctant to switch to another product or servicce.
    6·1 answer
  • Whats the tax used on airline tickets and gasoline?
    10·1 answer
  • If the same patient has an office visit and the charge is 120.00. the patient has met the annual deductible. if medicare allows
    10·2 answers
  • Preparing budgeted income statement.
    6·1 answer
  • You have gathered the following information on your investments. What is the expected return on the portfolio? Stock Number of S
    12·1 answer
  • The receipt of dividends and interest from abroad as a result of ownership of foreign assets by a country's residents is recorde
    13·1 answer
  • The underwriting syndicate of a bond offering is a group of investment banks, merchant banks, and the merchant banking arms of c
    7·1 answer
  • A positive consequence of organizational distress may take the form of: a. functional turnover. b. absenteeism. c. employee work
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!