Answer:
The amount in the account on the 18th birthday = $ 25,645.41
Explanation:
<em>The investment can be described as an ordinary annuity. An ordinary annuity is a series of equal periodic cash flows that occur for a certain number of years</em>
<em>The amount the invest will accrue principal plus interest is known as the f</em><u><em>uture value</em></u><em> of the annuity</em>
It is determined as follows:
<em>FV = A × ( (1+r)^n -1 ) / r</em>
FV - ?, A = 1000. r - 4%- 0.04, n - 18
FV = 1,000× ( ( (1.04)^(18) - 1 )/ 0.04
= 1,000 × 25.64541288
= $ 25,645.41
The amount in the account on the 18th birthday = $ 25,645.41
Answer:
d. $1,500 and its economic profits are $1,300.
Explanation:
The computation is shown below
For accounting profit, it is
= Total revenue - Explicit cost
where,
Total revenue is = 8 units × $300 per unit = $2,400
And, the explicit cost is $
900
So, the accounting profit is
= $2,400 - $900
= $1,500
And, the economic profit is
= Total Revenue - explicit cost - implicit cost
= $2,400 - $900 - $200
= $1,300
Simply applied the above formulas so that the both profits could arrive
Becky wants an account that will let her spend her money as much and as often as she needs. <u>Checking Account</u>
A checking account allows a person to make as many withdrawals as may be necessary. They may or may not earn some interest on the balance.
Sanjay wants an account that will earn interest but still let him make withdrawals. <u>Interest (Dividend) Checking Accounts.</u>
Interest (Dividend) Checking Accounts offer combined features of a checking account and a savings account. The interest rate on the balance is higher than a regular checking accounts, but an individual can withdraw money without any penalties. This account requires that an individual maintain a higher minimum balance.
Neveah has some money she wants to save until she goes to college in two years. She wants an account that will earn a little more interest. <u>Savings Accounts.</u>
Savings Accounts are interest bearing accounts and designed to encourage savings. Hence, withdrawals from such accounts may not be possible until a certain pre-agreed withdrawal date. Withdrawals before the pre-agreed date attract a large amount of penalty. Such accounts are usually used to build wealth.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $244
Unitary variable cost= 195 - 8= $187
Fixed costs= 327,600 + 37,000= $364,600
<u>We need to determine the new pre-tax income:</u>
Sales= 244*10,000= 2,440,000
Total variable cost= 187*10,000= (1,870,000)
Total contribution margin= 570,000
Fixed costs= (364,600)
Pre-tax income= 205,400
