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
maksim [4K]
3 years ago
12

One year ago, the Jenkins Family Fun Center deposited $4,800 into an investment account for the purpose of buying new equipment

four years from today. Today, they are adding another $6,600 to this account. They plan on making a final deposit of $8,800 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 9 percent
Business
1 answer:
posledela3 years ago
3 0

Answer:

$25,778

Explanation:

During the first year, $4,800 were deposited. Using the future value of an investment formula, after one year, this amount becomes:

X = 4,800 (1+0.09)

  = 5,232

Now, they add $6,600 to that amount. Now we have a total of:

6,600 + 5,232 = 11,832

During year two, the amount above becomes:

X = 11,832 (1+0.09)

  = 12,897

And at the end of year two, $8,800 are added. Now we have a total of:

12,897 + 8,800 = 21,697

During years three and four, that amount finally becomes:

X = 21,697 (1+0.09)^2

   = 25.778

Thus, after four years, the Jenkisn Family Fun Center will have $25,778 to buy the equipment.

You might be interested in
On January 1, Year 1, Bell Corp. issued $180,000 of 10-year, 6 percent bonds at their face amount. Interest is payable on Decemb
lara [203]

Answer:

Journal entries on January 1,year 1:

Dr Cash                     $180,000

Cr bonds payable                       $180,000

Journal entries on 31st December year 1:

Dr interest expense          $10,800

Cr Cash                                            $10,800

Journal entries on 31st December year 2:

Dr interest expense          $10,800

Cr Cash                                            $10,800

Explanation:

Since the bonds were issued at par ,it means the cash realized from the issuance is $180,000 which would debited to cash account and credited to bonds payable account.

On 31st December ,year 1 the first interest is paid which is calculated thus:

$180,000*6%=$10,800

The $10,800 is debited to interest expense account and credited to cash(or to interest payable if cash is not paid immediately)

On 31st December ,year 2 the first interest is paid which is calculated thus:

$180,000*6%=$10,800

The $10,800 is debited to interest expense account and credited to cash(or to interest payable if cash is not paid immediately)

6 0
3 years ago
Suppose that the one-year interest rate is 5.0 percent in the United States; the spot exchange
Mrac [35]

Answer:

The interest rate for the euro zone to avoid arbitrage has to be C) 8.62%

Explanation:

Hi, we need to solve for r(eur) the following equation in order to find an interest rate that will avoid arbitrage.

Forward=Spot(\frac{1+r(usd)}{1+r(eur)} )

That is:

1.16 =1.20 (\frac{1+0.05} {1+r(eur)} )

(1+r(eur)) =\frac{1.20} {1.16} (1+0.05)

r(eur)=\frac{1.20}{1.16}(1+0.05)-1

r(eur)=0.0862

So, the euro zone rate to avoid arbitrage is 8.62%, which is option C)

Best of luck.

3 0
3 years ago
Tom walks bethany's dog once a day for $50 per week. bethany values this service at $60 per week, while the opportunity cost of
s344n2d4d5 [400]

The total surplus is A. $30.

The surplus is the amount of money that is let over after all requirements have been met/paid. This can also be an excess amount of production that is over the amount of money demanded. The opportunity cost is $30, which is what Tom values his time being worth that he is not getting due to dog walking.

5 0
3 years ago
What is your marginal rate of consumption (MPC)? If your income increased $1,000 per month until retirement, how much would your
vivado [14]

Answer:

$400

Explanation:

In the case when the income would be increased by $1,000 per month so the spending on consumption goods would also be increased by 40% here we assume the 40%

So,

= $1,000 × 40%

= $400

Therefore based on the above assumption, the spending on consumption goods would be increased by $400

3 0
3 years ago
Two firms are ordered by the federal government to reduce their pollution levels.
Leni [432]

Answer:

The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.I hope my explanation will help you in understanding this particular question.

Explanation:

8 0
3 years ago
Other questions:
  • On december 31, 2017, swan company sold for $150,000 an old machine having an original cost of $170,000 and a book value of $120
    14·1 answer
  • Lately, there have been several complaints about evan's work performance. he has arrived late, his uniform is stained and wrinkl
    12·2 answers
  • The concept of opportunity cost is a measure of​ _________.
    8·1 answer
  • Michael wanted to build a small princess castle for his daughter in the backyard. He decided to turn it into a do-it-yourself pr
    7·1 answer
  • Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours a
    9·1 answer
  • What happens when the Federal Reserve puts money into the banking system
    7·1 answer
  • How air particle density and air pressure are related
    5·1 answer
  • Variable $100,000 $ 25,000 Fixed 150,000 75,000 Total $250,000 $100,000 What is the initial selling price needed to obtain a tar
    12·1 answer
  • 1.Economics is the study of ____________________ and _________________________.2.What is opportunity cost
    9·1 answer
  • Which of the following is a service fee? an amount of money a bank charges?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!