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
pav-90 [236]
3 years ago
5

Dave makes payments of 100 at the end of year 1, 300 at the end of year 3, 500 at the end of year 5 and so on until he makes his

final deposits of 2,100 at the end of year 21. Find the present value of Dave's deposits using an annual effective rate of 4%.
Business
1 answer:
inn [45]3 years ago
3 0

Answer:

The present value for each year is calculated at 4% interest. In this question the present value be the sum of the cash deposits plus the interest for each year.

Present Value

= Sum of cash deposits for each year + Interest for each year

= 23100 + 9240

= 32340

Explanation:

To calculate the sum of the cash deposits, add the deposit for each year.

(Year 1 to Year 21 = 23100)

To calculate the interest for each year, take the cash deposit for the year and multiply it by 4%. (Year 1 to Year 21 = 9240)

Refer to the attached spreadsheet to assist with the calculations and the answer given above.

Download xlsx
You might be interested in
Zibb is a transnational electronics company based in Germany. It has factories in China, Mexico, and India. The company aims to
Brrunno [24]
It’s C) The geocentric orientation

I hope this helped out, have a nice day! :)
5 0
3 years ago
Rice Corp. recognizes revenue over time to account for long-term contracts and has the following information for the first year
trasher [3.6K]

Answer:

D.) $75,000

Explanation:

Amount of revenue recognized = Cost incurred to date / Estimated total cost * Contract price

Cost incurred to date=60,000

Estimated total cost=400,000

Contract price=500,000

Amount of revenue recognized= 60,000/400,000 * 500,000

=0-15 * 500,000

=$75,000

Amount of revenue recognized in year 1 is $75,000

8 0
3 years ago
During the recession of 2008 through 2010, Ford
mars1129 [50]

Answer:

During the recession of 2008 through 2010, Ford saw sales of its vehicles drop and was forced to reduce production. This decision reflected changes in the company's ECONOMIC environment.

Explanation:

The automotive industry crises occurred from 2008 to 2010, it was basically a part of the financial crisis that started in 2007. It also effected most of the Europe, but the results in America were far worst than any other part of the world. The main reason behind it was the rise in the fuel prices for these vehicles. As Ford didn't offer much fuel efficient models for costumers, their sales started to decline, which resulted in the reduction of production, and changed the companies economic environment.

3 0
4 years ago
You are going to make an investment of $1000, and are considering 2 options: Option one is a zero-coupon 5-year bond of a compan
Andrei [34K]

Answer:

a. What is the expected return of the risky corporate bond over the 5-year holding-period (in %)?

expected return in $ = (50% x 20% x $1,000 x 4) + (50% x 35% x $1,000 x 4) = $400 + $700 = $1,100

holding period return = ($1,100 - $1,000) / $1,000 = 10%

b. What is its effective annual return?

(1 + 10%)⁰°² - 1 = 1.92%

b. What is its effective annual return?

  • 2. The government bond is the superior investment

The yield of he corporate bond is very low and the risk is too high.

8 0
3 years ago
The following cash transactions occurred during the period. INTEREST RECEIVED IN CASH $18,000
nikklg [1K]

Answer:

OPERATING ACTIVITIES

SOURCES: INTEREST RECEIVED IN CASH $18,000, the company receives money

(USES:) PAYMENT OF WAGES TO EMPLOYEES $35,000, the company pays wages

INVESTING ACTIVITIES

SOURCES: NONE

(USES:) PURCHASE OF A PIECE OF EQUIPMENT FOR CASH $120,000  , the company pays for the equipment

FINANCING ACTIVITIES

SOURCES: NONE

(USES:) DISTRIBUTION OF CASH DIVIDEND DECLARED LAST YEAR $25,000, the company pays dividends

5 0
3 years ago
Other questions:
  • What does apartheid mean and what country in africa practiced it?
    12·1 answer
  • Measures to ensure environmental sustainability
    10·1 answer
  • Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places.) Calculate the number of days' sales in inven
    13·1 answer
  • On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,00
    6·1 answer
  • A __________ is an option valuation model based on the assumption that stock prices can move to only two values over any short t
    13·1 answer
  • Question:
    9·1 answer
  • SUB TO ME thunderoflight12 PLSSSSSSSSSSSSSSS I WILL MARK BRAINLYIST IF YOU DO FOR ALL MY THINGS
    7·1 answer
  • What pricing strategies do McDonalds use.
    12·2 answers
  • Cashews, Inc. issued $100,000, 6% bonds at face value on January 1. The bonds pay interest semiannually on June 30 and December
    11·1 answer
  • Features of wealth definition <br><br> 10
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!