Answer:
FV = PV (1 + r) ^ n and $815.61
Explanation:
The amount of cash which will have accrued by a given date resulting from earlier single sum or period investments is known as the Future Value (FV) and represented by the following function :
FV = PV (1 + r) ^ n
where,
PV = Principle amount
r = interest rate
n = number of periods for which investment is to receive interest
Using the Function we can determine the amount Michael have in his account after 6 years :
FV = PV (1 + r) ^ n
= $600 x (1.0525) ^6
= $815.61
Answer:
$4,953
Explanation:
Given by the question, we have:
+) Present value of annuity = $17,400
+) Return on the investment = annual interest rate on the loan = 9.4%
The type of this annuity is annuity due.
We have the equation to calculate the present value of annuity due as following:
PV Annuity Due = P × [1 - (1 + r)^(-N)]/r × (1+r)
=> P = PV Annuity Due ÷ {[1 - (1 + r)^(-N)]/r × (1+r)}
In which:
+) P: Annual payment
+) r: annual interest rate = 9.4% = 0.094
+) N: Number of payments = 4 (As the loan is repaid in 4 payments)
+) PV Annuity Due = 17,400
=> P = 17,400 ÷ {[1 - (1 + 0.094)^(-4)]/0.094 × (1+0.094)} ≈ $4,953
Answer:
Net income = $ 150500
Return on assets = 20.07 %
Explanation:
Net income = (annual sales)*7%
= $ 2150000*7%
= $ 150500
return on assets = [net income*100]/[assets to support expansion]
= (150500)(100)/(750000)
= 20.07 %
Therefore, the Net income for the year is $ 150500 and the Return on assets for the year is 20.07 %.
Answer: Cost plus contract
Explanation:
A contract in which the contractor is reimbursed on allowable expenses and paid an agreed percentage of the total allowable expenses.
Answer:
$64,000
Explanation:
The calculation of the cash disbursements for selling and administrative expenses on the December selling and administrative expense budget is given below;
= Variable Selling & Administrative Expenses + Fixed Seliing & Administrative Expenses - Depreciation
= 3,200 units × $3.10 + $60,800 - $6,720
= $64,000