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
nadezda [96]
3 years ago
15

Sally has invested $10,000 now and wants to earn a real interest rate of 10% per year. Assume that the inflation rate is 7% per

year. Determine the future worth Sally has to receive 10 years from now? a) $62, 338 b) Unknown c) $42, 338 d) $52, 338
Business
1 answer:
hodyreva [135]3 years ago
4 0

Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

<u>The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:</u>

Nominal rate of return= 0.1 + 0.07= 17%

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the n<u>ominal valu</u>e received after ten years.

<u>If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:</u>

<u></u>

FV= 10,000*(1.1^10)

FV=$25,937.42

You might be interested in
Your business partner has proposed you to join him (her) in investing $100000 each in a new enterprise. assume that you have tha
hjlf

Answer:

I wouldn't invest.

Risk preference at least 50-50 chance of gain and loose

Explanation:

case of success the return i get is $40000

case of failure i lose $20000.

My analysis shows P40=0.3 of success

And P-20=0.7 of failure.

The probability of a loose is much bigger than the probability of a gain.

So I can't bear the loose of loosing 7 times if about 20000 and gaining 3 times of about 40000 it doesn't balance.

My loose accumulating to 140000

While my gain is 120000.

I can't invest

7 0
3 years ago
What factors of production will go into making the item
lukranit [14]
Production Capital, Human Capital, Resource Capital, and Intellectual Capital... 
Let me know if you need to know what those are :)
6 0
3 years ago
Swifty Company's accounting records show the following at the year ending on December 31, 2022: Purchase Discounts $ 11300 Freig
Juli2301 [7.4K]

Cost of goods sold (Periodic System) = Beginning inventory + (Purchases, net of returns and allowances, and purchase discounts) + freight in − Ending inventory .

COGS = Cost of goods sold

COGS = 46200+(401100-13500-11300)+16000-57900

COGS = 380600

The total sum that your company spent on expenses directly associated with the selling of goods is known as the cost of goods sold. Depending on the nature of your firm, this could also include raw materials, packaging, direct labor involved in making or selling the product, and items bought for resale.

First In First Out (FIFO), Last In First Out (LIFO), and the Average Cost Method are the three techniques that a business might employ when tracking the amount of inventory sold over a given time period.

Learn more about cost of goods sold here

brainly.com/question/17205761

#SPJ4

7 0
2 years ago
A firm is considering a project requiring an investment of $30,000. The project would generate an annual cash flow of $7,251 for
Nina [5.8K]

Answer:

c.12%

Explanation:

PVF of  12% for 6 years is 4.11

PVFof 11% for 6 years is 4.23

Present value of cash inflows, 12% = 7251*4.11

Present value of cash inflows, 12% = 29801.61

Present value of cash inflows, 11% = 7251*4.23

Present value of cash inflows, 11% = 30671.73

Internal rate of return = 11% + (30671.73 - 30000)/(30671.73-29801.61)

Internal rate of return = 11.7719969659%

Internal rate of return = 11.772%

3 0
3 years ago
Candice tells Yuri that she wants to hear his ideas about the Q4 Finance Report, and Yuri says that they should compare it to la
Sloan [31]

c.

Arrogantly

Explanation:

What Candice is saying here basically boils down to 'we don't need to compare this to last year's performance as I want to see positive results not negatives'<u> insinuating that the performance has become worse in the last year.</u>

<u>Regressions in a financial report mean weaker performance over the fiscal year while projections mean that the performance was better.</u>

4 0
3 years ago
Other questions:
  • Which is the primary factor taken into consideration during distribution of grants and loans among eligible students
    5·2 answers
  • Nicole thinks that her business, nicole's getaway spa (ngs), is doing really well and she is planning a large expansion. with su
    6·1 answer
  • Departmental overhead rates LO P2 Textra Plastics produces parts for a variety of small machine manufacturers. Most products go
    9·2 answers
  • 1. Why is it important for a restaurant to identify a specific target market?
    13·1 answer
  • The Groom company has 50,000 shares of $10 par value common stock outstanding when it declares a dividend of $1 per share. What
    12·1 answer
  • When a magazine company collects cash for selling a subscription, it is an example of: Multiple Choice An accrued liability tran
    10·2 answers
  • Compare tracking in affiliate marketing to that of e-mail and online advertising. What are the similarities?
    6·1 answer
  • Answer ASAP
    13·2 answers
  • Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional
    8·2 answers
  • other things held constant, the lower a firm's tax rate, the more logical it is for the firm to use debt. true false
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!