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VLD [36.1K]
2 years ago
6

A rich uncle wants to make you a millionaire. How much money must he deposit in a trust fund paying 12% compounded quarterly at

the time of your birth to yield $1,000,000 when you retire at age 60? (Round your answer to the nearest cent.)
Business
1 answer:
Reptile [31]2 years ago
8 0

Answer:

P=24.92 per quarter

Explanation:

this problem can be solved applying the concept of annuity, keep in mind that an annuity is a formula which allows you to calculate the future value of future payments affected by an interest rate.by definition the future value of an annuity is given by:

s_{n} =P*\frac{(1+i)^{n}-1 }{i}

where s_{n} is the future value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

s_{60*4} =P*\frac{(1+(0.12/4))^{60*4}-1 }{(0.12/4)}

we will asume that deposits are made as interest is compounded it is quarterly thats why we multiply 60 and 4 and also we divide 12% into 4, so:

1,000,000 =P*\frac{(1+(0.12/4))^{60*4}-1 }{(0.12/4)}

solving P

P=24.92

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If the useful life is reduced from 15 to 10 years therefore, the depreciation expense would increase.

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2 years ago
Carrington Corp. uses a periodic system and the LIFO method. Carrington had beginning inventory of 30 units purchased at $120 ea
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Answer:

the cost of ending inventory is $1,680

Explanation:

The computation of the cost of ending inventory is shown below:

But first determine the ending units

Ending inventory units is

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Now

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And, the same is to be considered

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2 years ago
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Explanation:

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Net income = (3,300 units × $7.80 per unit) − (3,300 units sold × $5.3per unit) − $4,300

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