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
guajiro [1.7K]
2 years ago
7

Find the principal P that must be invested at rate r, compounded monthly, so that $1,000,000 will be available for retirement in

t years. (Round your answer to the nearest cent.)r
Business
1 answer:
astraxan [27]2 years ago
6 0

Answer:

$224,174

Explanation:

Note : I have uploaded the full question below :

The Principle P that is required can be calculated from the given data though discounting future cash flows as follows :

FV = $1,000,000

r = 7½%

t = 20 × 12 = 240

P/yr = 12

Pmt = $0

PV = ?

Using a Financial Calculator to input the values as shown above, the PV would be $224,174 . Thus, the principal P that must be invested must be $224,174.

You might be interested in
On November 1, 2018, Mason Corp. sold $700,000 of its 10% term bonds dated October 1, 2018. The bonds were sold to yield 8%, wit
kvv77 [185]

Answer:

$16,000

Explanation:

The computation of the amount reported for the interest payable is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $800,000 × 8% × (3 months ÷ 12 months)  

= $16,000

The three months should be taken from October 1 To November 1 and November 1 to December 31

We simply applied the above formula so that the interest payable amount could come

7 0
3 years ago
A customer holds 100 shares of ABC Corp $100 par convertible preferred stock convertible at a 10 to 1 ratio. If ABC declares and
Leviafan [203]

Answer:

B. 100 shares of ABC preferred stock

Explanation:

Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.

Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.

Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.

In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.

So the person with 100 preference shares will have 100 preference shares

10% of par value of $100 is 0.1 * 100= $10

Number of shares are 100 so the value is now 100 * $10 = $1,000

Since the conversion rate of preference to ordinary shares is 10:1

Number of preference shares= 1,000 ÷ 10= 100 preference shares

5 0
3 years ago
Which method of bond amortization amortizes the premiums/discounts accurately and is considered a conceptually superior method
SashulF [63]

Answer:effective-interest

Explanation:

3 0
2 years ago
PC Bell, a computer manufacturer that sells computer systems directly to customers, buys a computer chip for $180, software for
Colt1911 [192]

Answer:

Price at which this system is sold is $1,980

so correct option is B. $1,980

Explanation:

given data

computer chip = $180

software = $350

printer = $50

value added = $1,400

to find out

price at which the system is sold

solution

Price at which this system is sold is

system is sold = computer chip + software  + printer + value added

so

Price at which this system is sold is = $180 + $350 + $50 + $1,400

Price at which this system is sold is $1,980

so correct option is B. $1,980

3 0
3 years ago
Jane currently has $5,300 in her savings account and $2,000 in her checking account at the local bank. Instructions:
mrs_skeptik [129]

Answer:

A

  • M1 change = $500
  • M2 change = $0

B

  • M1 change = -$340
  • M2 change = -$180

Explanation:

A. M1 includes actual liquid cash in hand as well as cash in checking deposits.

M2 includes M1 as well as savings deposits and time deposits amongst others.

M1 change = +$500

$500 went from the Savings account which was not part of M1 to M1.

M2 change = $0

The money went from Savings to Checking which are both part of M2.

B.

M1 change = -$-180 - ( 500 - 180 -160 ) = -$340

Tax of $180 went out of the supply as tax. Jane deposits the remaining cash after paying $160 for goods into the savings account which is not part of M1. That remaining cash is = 500 - 180 - 160 = $160.

M2 change = -500 + 160 + 160 = -$180

For M2, only taxes will reduce money from it because the rest goes to checking deposits and savings accounts both of which are part of M2

4 0
3 years ago
Other questions:
  • The _____ tax rate is the percentage of additional earnings that goes to taxes.
    11·1 answer
  • Economic growth is _____. the GDP's peak (or highest point), a continual increase in GDP, or the same as GDP
    15·2 answers
  • In the diagram above, what will happen if the government sets the price for potatoes at point A?
    12·1 answer
  • Which of the following tasks would be very difficult using only a keyboard and text?
    7·2 answers
  • Incentive Contracts (both Cost & Fixed Price Types) provide a method for adjusting the contractor's profit or fee, and estab
    14·1 answer
  • Which of the following errors would cause the adjusted trial balance to be unequal? a. The adjustment for prepaid insurance was
    13·1 answer
  • You run a small auto service shop. Your fixed expenses per week are $1,000 and your average customer invoice is $500 with an ass
    8·1 answer
  • In organizational change, unfreezing can occur by:
    11·1 answer
  • Branford Inc. reported the following results from the sale of 24,000 units of SR-90:
    14·1 answer
  • The measurement of earnings concept that consists of a company’s profit from operations after taxed are subtracted is ________.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!