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emmasim [6.3K]
2 years ago
10

Assume Sheryl Jenkins wants to accumulate $ 13,241.39 in two years. She currently has $ 10,621.36 to invest. What interest rate

must she earn on her investment (that is, if she deposits $ 10,621.36 today) to have $ 13,241.39 exactly two years from today?
Business
1 answer:
WITCHER [35]2 years ago
8 0

Answer: 11.65%

Explanation:

The $13,241.39 is a future value amount as it is what is to be accumulated in 2 years.

Future value formula therefore applies:

Future value = Current value * ( 1 + interest rate) ^ no. of years

13,241.39 = 10,621.36 * ( 1 + i) ²

(1 + i)² = 13,241.39 / 10,621.36

(1 + i)² = 1.24667556697

1 + i = √1.24667556697

i = 1.116546267 - 1

i = 11.65%

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sweet [91]

Answer: C I believe

6 0
2 years ago
Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of uear three at 4.5 per
UkoKoshka [18]

Answer:

Final value= $2,282.013

Explanation:

Giving the following information:

Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of year three at 4.5 percent interest.

To calculate the total final value of the investment, we need to use the following formula for each deposit:

FV= PV*(1+i)^n

Deposit 1= 500*1.045^2= 546.013

Deposit 2= 800*1.045= 836

Deposit 3= 900

Final value= $2,282.013

4 0
3 years ago
ssume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 =
Rufina [12.5K]

Answer:

Option (D) is correct.

Explanation:

Given that,

Dividend, D0 = $0.90

Price, P0 = $27.50

Growth rate, g = 7.00% (constant)

D1 = D0 (1 + g)

    = $0.90 × (1 + 0.07)

    = $0.90 × 1.07

    = $0.963

Cost of equity, Ke = [ D1 ÷ P0 ] + g

                               = [$0.963 ÷ $27.50 ] + 0.07

                              = 0.0350 + 0.07

                               = 0.1050 i.e 10.50 %

7 0
3 years ago
From the McDonalds web "There is increasing concern about obesity rates and related risks to well-being among consumers, governm
Sidana [21]

Answer:

Social responsibility

Explanation:

Social responsibility is the way a company's managers and employees view their duty or obligation to make decisions that protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole.

6 0
3 years ago
A manufacturer has a monthly fixed cost of $60,000 and a production cost of $16 for each unit produced. The product sells for $2
Sidana [21]

Answer:

$133,928.57

Explanation:

Break even revenue = Fixed cost / contribution to sales ratio

Contribution to sales ratio = Selling price - Variable cost / selling price

Fixed cost = $60000

Variable cost= $16 per unit

Selling price = $29 per unit

Contribution to sales ratio = 29 - 16/ 29 = 13/29 = 0.448

Break even revenue = 60000/0.448 = $133,928.57

3 0
3 years ago
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