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
tangare [24]
3 years ago
6

Entertainer's Aid plans five annual colossal concerts, each in a different nation's capital. The concerts will raise funds for a

n endowment which would provide the World Wide Hunger Fund with $3,000,000 per year into perpetuity. The endowment will be given at the end of the fifth year. The rate of interest is expected to be 9 percent in all future periods. How much must Entertainer's Aid deposit each year to accumulate to the required amount
Business
1 answer:
Finger [1]3 years ago
3 0

Answer: $5,569,758.43

Explanation:

First you need to find the present value of the Perpetuity at the end of the fifth year.

Present value of Perpetuity = Amount / Interest rate

= 3,000,000 / 9%

= $33,333,333.33

Given an interest rate of 9%, Entertainer's aid should deposit an amount per year that would lead to the endowment having $33,333,333.33 at the end of the fifth year.

Future value of annuity = Annuity * Future value of annuity interest factor, 9%, 5 years

33,333,333.33 = Annuity * 5.9847

Annuity = 33,333,333.33 / 5.9847

= $5,569,758.43

You might be interested in
Which of the following is a way to track your money?
Olin [163]
All of the above is the best answer
4 0
3 years ago
Mark, the business head of a firm, wanted to give New Year’s gifts to his employees. He discussed this with his employees and de
zysi [14]

Answer:

Identify options.

Explanation:

Added value negotiation is defined as value that is added to a deal between parties to enhance relationship between them. It goes further than normal negotiation by providing something extra.

It focuses on interest, develops options, and creates deals that benefits all parties involved.

Mark did not want to buy cheap bags as a new year gift for his employees, while the employees did not want exorbitant bags.

Mark is focused on adding more value than the employees expect in this scenario.

3 0
3 years ago
On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rat
solniwko [45]

Answer:

Explanation:

Interest expense refers to charges paid for borrowing money. It is the money that a lender charges  borrower for borrowing money from him. In the income statement, it represents interest to be paid on borrowings such as bonds, loans, convertible debt or lines of credit. It is calculated as product of the interest rate times the outstanding principal amount of the debt.

Given that:

Moonbooks received $79,380 =  principal amount of debt (P)

The interest rate (r) = 8% annually = 0.08.

Interest expense payable for 2018 (first year) = P × r = $79380 × 0.08 = $6350

For the second year i.e 2019 The principal amount of debt = $79380  + $6360 = $85730

Interest expense payable for 2019 (second year) = P × r = $85730 × 0.08 = $6858

6 0
3 years ago
Most employees who use flextime prefer to work independently of others. In order to accommodate this preference, businesses perm
Drupady [299]
I think that the answer is True, because this is a good schedule to these people
3 0
3 years ago
Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given
AnnyKZ [126]

Based on the given information, it can be concluded that Derek is implementing the process of Depreciation.            

<h3><u>Explanation:</u>  </h3>

When dealing with assets whether fixed or non-fixed, the cost over its useful life is reduced in a systematic manner until it reaches zero. This is known as depreciation. It represents the value of the said asset that has been used up. The significance of depreciation is to allow the company to make revenue from the assets while the proportion of buying cost is expended during its service.

Failure to depreciate assets can negatively affect the company’s profits. There are different methods used to calculate depreciation and all depends on the following factors: salvage value, the asset cost price, and useful life.

8 0
3 years ago
Other questions:
  • Crane Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $23,000 a
    15·1 answer
  • On January​ 1, 2018, Waller Sales issued in bonds for . These are eightyear bonds with a stated rate of ​%, and pay semiannual i
    12·1 answer
  • Using account analysis, what type of cost is the fee the airline company charges for your bags assuming a typical policy is $25
    8·1 answer
  • A company usually determines the amount of supplies used during a period by:
    8·1 answer
  • Use the following data to compute total manufacturing costs for the month:
    11·1 answer
  • Geneva Company manufactures dolls that are sold to various customers. The company works at full capacity for half the year to me
    7·2 answers
  • A store that advertises a buy one get one free sale is
    12·2 answers
  • The price elasticity of demand for tickets to local baseball games is estimated to be equal to 0.89. In order to boost ticket re
    5·1 answer
  • Reviewing the agenda of a meeting prior to the start of the meeting involves which of the following strategies to enhance listen
    15·1 answer
  • PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!! PRAISE ALLAH!!!!!!!PRAISE ALLAH!!!!!!!PRAISE ALLAH!
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!