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
Aliun [14]
3 years ago
14

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $6

00 at the end of Year 6. If other investments of equal risk earn 7% annually, what is its present value? Round your answer to the nearest cent. $ If other investments of equal risk earn 7% annually, what is its future value? Round your answer to the nearest cent.
Business
1 answer:
Tomtit [17]3 years ago
5 0

Answer:

present value $ 1,026.16

future value  $ 1,539.98

Explanation:

Present Value = $ 100 * 1/(1.07) ^ 1 + $ 100 * 1/(1.07) ^ 2 +$ 100 * 1/(1.07) ^3 + $ 200 * 1/(1.07) ^4 + $ 300 * 1/(1.07) ^5 +$ 600 * 1/(1.07) ^6

=93.45+ 87.34+81.62+152.20+213.23+398.32

= $ 1,026.16

therefore,  the correct value  is $ 1,026.16

b. Future Value = Present Value * ( 1+ Rate of Interest ) ^ Time

= $ 1,175.63 * ( 1+0.07) ^ 6

= $ 1,539.98

Hence the correct answer is $ 1,539.98

You might be interested in
This is science ฅ^•ﻌ•^ฅ
Yuki888 [10]

\color{red}{==========================}

\sf\huge\underline\red{ANSWER}

Is the sun a star?

  • A. Yes

  • ᴇxᴘʟᴀᴛɪᴏɴ ɪs ᴏɴ ᴀᴛᴛᴀᴄʜᴇᴅ ᴘʜᴏᴛᴏ

sᴏʀʀʏ ɪᴛ ʀᴇᴀʟʟʏ sᴀɪᴅ ɪ ʜᴀᴠᴇ ʀᴜᴅᴇ ᴡᴏʀᴅs

\color{red}{==========================}

✍︎✰ᴍᴀᴛʜᴅᴇᴍᴏɴǫᴜᴇᴇɴ✰

✍︎☮︎ᴄᴀʀʀʏᴏɴʟᴇᴀʀɴɪɴɢ☮︎

8 0
3 years ago
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Accounts Debit Credit Cash $ 16,000 A
ANTONII [103]

Answer:

China Tea Company

<u>Classified Balance Sheet as at December 31, 2021</u>

ASSETS

<u>Non Current Assets</u>

Equipment                                                               $330,000

Accumulated depreciation                                    ($127,000)

Total Non - Current Assets                                    $203,000

<u>Current Assets</u>

Prepaid rent                                                                $7,000

Supplies                                                                    $27,000

Accounts receivable                                               $158,000

Cash                                                                          $ 16,000

Total Current Assets                                              $208,000

TOTAL ASSETS                                                        $411,000

EQUITY AND LIABILITIES

EQUITY

Common stock                                                      $180,000

Retained Earnings                                                 $361,700

TOTAL EQUITY                                                      $541,700

LIABILITIES

<u>Non Current Liabilities</u>

Notes payable (due in two years)                         $30,000

Total Non - Current Liabilities                               $30,000

<u>Current Liabilities</u>

Accounts payable                                                  $19,000

Salaries payable                                                      $3,800

Interest payable                                                       $1,500

Total Current Liabilities                                         $24,300

TOTAL LIABILITIES                                               $54,300

TOTAL EQUITY AND LIABILITIES                      $596,000

Explanation:

A Balance Sheet show the Assets, Liabilities and Equity Balances as at the Reporting date

Retained Earnings Balance = Opening Balance + Profit for the year - Dividends.

where,

Profit for the Year = Sales - Expenses

                              = $470,000 - ($78,000 + $18,000 + $33,000 + $2,000 + $42,000)

                              = $297,000

therefore,

Retained Earnings Balance = $94,700 + $297,000  - 30,000 = $361,700

8 0
2 years ago
You are given the following information:Expected return on stock A12%Expected return on stock B20%Standard deviation of returns:
AlexFokin [52]

Answer and Explanation:

The computation of the expected return and standard deviation when there is 100% in stock A is shown below:

Expected return is

= 0.12 × 100

= 12%

And, the standard deviation of the portfolio is

= √1^2 + √1^2

= 1

Hence, the same is relevant

3 0
2 years ago
DeWitt Company sells a kitchen set for $330. To promote July 4, DeWitt ran the following advertisement:
cestrela7 [59]

Answer:

$269.97

Explanation:

The computation of the Ingrid salary is shown below:

= Sale value of a kitchen set × markdown percentage × markup percentage × markdown percentage

= $330 × 90% × 101% × 90%

= $269.97

The markdown percentage is

= 100% - 10%

= 90%

And, the markup percentage is

= 100% + 1%

= 101%

We assume the sale is 100%

8 0
3 years ago
Why is it necessary for businesses to break their target markets down into segments?
kotegsom [21]
It is because businesses like cheap advertising
3 0
3 years ago
Other questions:
  • Which compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percen
    12·1 answer
  • Which of the following contracts would not be governed by the UCC? a. a contract for dentures b. a contract for the purchase of
    13·1 answer
  • Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have
    14·1 answer
  • 1.You should document your sources in all of the following situations except A. when using someone else's unique idea. B. when u
    14·1 answer
  • agricultural workers and industrial laborers were almost the same number a) during 1850 b) during 1880 c) during 1890 d) during
    9·1 answer
  • UBS buy-side analyst Christopher Dixon is following a mature telecommunications company TFI Inc in 2016. UBS estimates 1.5 for T
    12·1 answer
  • Why does manufacturing's multiplier effect matter to an economy?
    11·1 answer
  • Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting informa
    6·1 answer
  • Bateman Corporation sold an office building that it used in its business for $800,200. Bateman bought the building 10 years ago
    14·1 answer
  • Interim financial statements: Multiple Choice Are required by the Congress. Are necessary to achieve full disclosure about a bus
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!