All categories

3 years ago

Felicia put $175 into a CD that pays 4% interest, compounded semiannually.

Business

1 answer:

Mariana [72]3 years ago

7 0

Answer:

D. 18 years

Explanation:

Felicia has $175; doubling it will make it $350 ($175 x 2)

The interest per year is 4%

The applicable formula is A= P ( 1 + r)^n

where A = $350

P=$175

r=0.04

n= time ???

$350=$175 (1 +0.04)^n

350= 175(1.04)^n

350/175=1.04^n

2=1.04^n

log 2= (log 1.04)n

n= log2/ log1.04

n= 0.30102/0.017033

n= 17.70 year

n=18 years

You might be interested in

ohaa [14]

Answer:

B. Spreads the stockholder’s risks across a group of truly diverse businesses.

Explanation:

Diversification is a risk management strategy whereby there is a mix of a wide variety of investments in a portfolio. This limits the exposure to any single type of risk. For example, instead of investing in 3 different hotels in the tourism industry, investing in one hotel in the tourism industry, another business in the healthcare industry and another business in the education industry. That way, if any factor causes a drop in the tourism industry, only one investment would be affected negatively. There would still be profits from the healthcare and education industry. The positive performance of some investments will neutralize the negative performance of others.

4 0

4 years ago

The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and endi

Gekata [30.6K]

Answer:

Blue Flower Company

Current Ratio = Current Assets/Current Liabilities

= $100,000/$60,000

= 1.67 : 1

This ratio implies that Blue Flower Company can pay its current or short-term liabilities 1.67 times, using its current assets, made up of cash, receivables, and inventory, including short-term investments.

Explanation:

a) Data and Calculation:

Cash and short-term investments $45,000

Accounts receivable (net) 30,000

Inventory 25,000

Total current assets $100,000

Current liabilities = $60,000

b) Blue Flower's Current Ratio is a financial measure of the company's ability to settle maturing current liabilities (obligations) with its current assets without resorting to sale of long-term assets.

6 0

3 years ago

In location decision process, community location decision involves: a. selecting a specific city in which to locate. b. evaluati

Leokris [45]

Answer:

The correct option is A, selecting a specific city in which to locate

Explanation:

This question can be solved if we try to eliminate obviously wrong options ,for instance options B and D are entirely out of context with the issue raised because even a layman knows that location of an industry means siting a business in a particular area.

However, we are left with options A and C,but it is important to note that community location is more specific and points to the exact location where the business is to be sited whereas general region is generic in nature.

Judging from the above, the specific city where the business is to be built is best option.

6 0

4 years ago

During April, the first production department of a process manufacturing system completed its work on 375,000 units of a product

d1i1m1o1n [39]

Answer:

Using the weighted average method, the Equivalent units for material is:

= Units completed and transferred out + Equivalent closing material

= 375,000 + (97,000 units * 80% complete with respect to materials)

= 375,000 + 77,600

= 452,600 units

Equivalent units for conversion:

= Units completed and transferred out + Equivalent closing units with respect to conversion

= 375,000 + (97,000 * 30%)

= 375,000 + 29,100

= 404,100 units

3 0

3 years ago

On January 1, 2020, Smith Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable

iogann1982 [59]

Answer:

a. The present value of the interest is:_________

PV of coupon payments = coupon x PV annuity factor, 4%, 16 periods = $180,000 x 11.652 = $2,097,360

b. The present value of the principal is:_________

PV of face value = face value x PV 4%, 16 periods = $6,000,000 x 0.534 = $3,204,000

c. The price of bond is:_________

market price of the bonds = $2,097,360 + $3,204,000 = $5,301,360

since the market rate is higher than the coupon rate, the bonds will always be sold at a discount

4 0

3 years ago