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True [87]
3 years ago
6

How much money will you have in a savings account that earns 16% annually in 10 years if you invest $5000 per year?

Business
1 answer:
klio [65]3 years ago
3 0

Answer:

The final value is $106,607.35.

Explanation:

Giving the following information:

n= 10 years

i= 16%

Annual deposit= $5,000

To calculate the final value we need to use the following version of the final value formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*{(1.16^10)-1]}/0.16= $106,607.35

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Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's nor
vesna_86 [32]

Answer:

$90.19

Explanation:

Direct material = 52.10

Direct labour = 10

Variable manufacturing = 3

Fixed manufacturing = 21.10

Variable Admin expenses = 5.60

Fixed admin expenses = 27

Selling price = 124.1

Profit=5.3

Contribution per unit = 53.4

New order = 3900

Direct material 52.1

Direct labour =10

Variable manufacturing = 3

Variable admin expenses = 2.5

total unit variable cost = 67.6

total variable cost =3900*67.6 = 263640

Loss contribution =1650*53.4 =88110

=263640+8810 =351750

351750/3900

=$90.19

5 0
4 years ago
Megan is already looking ahead to graduation and a job, and she wants to buy a new car not long after her graduation. If after g
miss Akunina [59]

Answer:

$ 7,322  

Explanation:

$2300 per year is an annuity investment. The formula for future annuity value is as below

FV  =  A  × (1 + r)^n - 1 / r

                           

Where A = amount invested periodically

r = interest rate, 6% or 0.06

n = 3 years

Fv = $2300 x{ (1 +0.6)^3 -1} /0.06

Fv  = $2300 x (1.191016-1) /0.06

Fv  = $2300 x  ( 0.191016/0.06)

Fv =  $2300 x  3.1836  

Fv=  $ 7,322.28

Fv= $ 7,322  

 

7 0
3 years ago
Failure to pay on a mortgage is called
worty [1.4K]
The failure to pay on a mortgage is default. Basically, the default is the failure to meet legal responsibilities in a contract, including the failure to pay back a loan. A mortgage is considered a default when a payment is late for 30 days or more. 
6 0
3 years ago
Read 2 more answers
Within the five forces framework, the five most common threats facing firms from their competitive environment include each of t
xz_007 [3.2K]

Answer:

B. Complementors

Explanation:

According to Porter, there are 5 forces that affect firms from the competitive environment. They include:

1. Threat from new entrants/competition

2. Threat from existing competition

3. Power of suppliers

4. Power of buyers/customer

5. Threat of substitute product.

In this case, as it can be clearly seen, complementors isn't part of the threat listed out by porter five forces framework.

8 0
3 years ago
Read 2 more answers
Rufus Inc. and Hardy Company are negotiating a nontaxable exchange of business properties. Rufus’s property has a $50,000 tax ba
Norma-Jean [14]

Answer:

Which party to the exchange must pay boot to make the exchange work?

  • Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.

How much boot must be paid?

  • $90,000 - $77,500 = $12,500

Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?

  • Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500

Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?

  • Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.
8 0
4 years ago
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