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3 years ago

Three years ago, you invested $3,350.00. Today, it is worth $4,100.00. What rate of interest did you earn

Business

1 answer:

Anastasy [175]3 years ago

7 0

Answer:

6.97%

Explanation:

the formula to be used is

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

$4,100.00 = $3,350.00 x ( 1 + r)^3

divide both sides of the equation by $3,350.00

$4,100.00 / $3,350.00 = ( 1 + r)^3

1.223881 = ( 1 + r)^3

find the cube root of both sides

1.069661 = 1 + r

r = 6.97%

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Answer:

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A corporation purchased manufacturing equipment for $100,000, with an estimated useful life of 10 years and a salvage value of $

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Answer:

The second year’s depreciation for this equipment using the straight line method is 8,500

Explanation:

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The formula to compute the depreciation under straight lie method is shown below:

= $\dfrac{(original\ cost - salvage\ value)}{useful\ life}$

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= $8,500

The depreciation amount under straight line method should remain same over the estimated useful life

So, the second year’s depreciation for this equipment is $8,500

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3 years ago

Short Term Inc. has issued zero-coupon bonds that mature in one year. The returns from holding these bonds have a beta of 0.25.

Nataly [62]

Answer:

1. Current bonds price = $81.86.

2. Yield to maturity = 22.16%.

3. 3. Expected Return = 7.5%.

Explanation:

Required Rate = Rf + beta*MRP

= 5% + 0.25*(15% - 5%)

= 5% +0.25*10%

= 5% + 2.5% = 7.5%

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Expected Future Value = 70% x $100 + 30% x $60

= (0.7*$100) + (0.3*$60)

= $(70+18) = $88

Expected Future Value = $88

1. Current bonds price = 88/1.075 = $81.86

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3. Expected Return = 7.5%

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3 years ago

Required information The Foundational 15 [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] [The following information applies to the questions

Vsevolod [243]

Answer:

Results are below.

Explanation:

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Variable costing income statement:

Total unitary variable production cost= (24 + 16 + 2 + 3)= $45

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Total variable cost= 51,000*45= (2,295,000)

Contribution margin= 1,428,000

Fixed manufacturing overhead= (784,000)

Fixed selling and administrative expense= (672,000)

Net operating income= (28,000)

Absorption costing income statement:

Unitary production cost= (24 + 16 + 2) + (784,000/56,000)

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COGS= 51,000*56= (2,856,000)

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Total selling and administrative= 672,000 + 3*51,000= (825,000)

Net operating income= 42,000

The difference between both methods is the fixed manufacturing overhead allocated in ending inventory.

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3 years ago