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NNADVOKAT [17]
3 years ago
12

Bad Company, Inc., has a major outlay of $1.7 million that is needed to renovate the company's manufacturing facility. Because t

he company's management is conservative, it won't undertake the renovation until it has the cash necessary to fund the renovation. The company plans to deposit $134,000 each quarter into an account that will earn 1.35 percent per quarter. How many years will it be until the company has the money saved for the renovation?
Business
1 answer:
sleet_krkn [62]3 years ago
4 0

Answer:

It will require deposists for 11.79 years

Explanation:

We need to solve for the time at which an ordinary annuity of 134,000 each quarter at 1.35% rate generates a future value of 1,700,000

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C  $134,000.00

time n

rate 0.0135

FV $17,000,000

134000 \times \frac{(1+0.0135)^{n} -1}{0.0135} = 1,700,000\\

we rearrenge and solve as we can:

(1+0.0135)^{n}= 1 + \frac{1700000\times0.0135}{134000}

(1+0.0135)^{n}= 1.17126866

Then use logarithmics properties to solve the equation:

n= \frac{log 1.17126866}{log(1+0.0135)

n = 11.78905103

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kaheart [24]

Answer:

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Explanation:

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2 years ago
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Answer:

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I hope my answer helps you

5 0
3 years ago
Charlie Company uses a perpetual inventory system. During May, the following transactions and events occurred.
satela [25.4K]

The May transactions for Charlie Company (seller) assuming that Charlie uses a perpetual inventory system are:

Charlie Company Journal entries

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May 13

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Learn more here:

brainly.com/question/16912611

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