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sweet-ann [11.9K]
3 years ago
9

The Smiths are saving money for a down payment on a house. The Smiths have $25,000 in cash, and they estimate that in 5 years th

ey will have approximately $31,000 if they deposit their cash in a savings account that compounds interest yearly. To calculate the $31,000 amount, the Smiths determined
Business
1 answer:
s2008m [1.1K]3 years ago
8 0

Options :

A)net present value of the $25,000.

B)future value of the $25,000.

C)internal rate of the return on the $25,000.

D)present value of $25,000.

Answer: B)future value of the $25,000.

Explanation: The Smith's calculation and subsequent result which yielded $31,000 refers to the future value of $25,000. The initial $25000 is the present value of the amount held. If the initial amount is saved or deposited over a certain number of years in an account which yields a certain rate of interest per annum and is compounded either on a monthly, yearly, quarterly or semiannual basis as the case may be, in this scenario above, the interest is called mounded annually. This initial amount will grow and yield an amount which is greater than the present deposit. This is called the future value of the initial deposit.

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In its 2016 annual report, Lockheed Martin reported net earnings of $5,302 million and dividends paid of $2,048 million. Your fo
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The dividend for 2017 will be = $2124.98

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Dividend paid for the year 2016 = $2048

The forecast for the income of 2017 = $5504

The projected dividend for the year 2017 = 5504 x (2047 / 5302)

The projected dividend for the year 2017 = 2124.98

The dividend for 2017 will be = $2124.98

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The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than Entry
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A. Management's minimum required balance.

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Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current
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Answer:

A. $287,000

B. $192,050

Explanation:

a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.

b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050

Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:

=[$287,000 - ($181,050-$86,100)]

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Under the rule of 70, if the GDP per capita growth rate in the United States is 2.3%, standards of living double every:
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<h3>What is Gross Domestic Product (GDP)?</h3>

The term "Gross Domestic Product," or GDP, refers to the total monetary worth of all finished goods and services produced (and marketed) within a nation within a specific time period (typically 1 year).

GDP Growth Rate:

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GDP per capita:

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  • It conveys the nation's average economic output (or income) per person.
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The price deflator, a statistical tool, is used to convert nominal GDP to constant prices.

To know more about Gross domestic product (GDP), here

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