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3 years ago

if $2000 is invested at an annual interest rate r compunded monthly the amount in the account after 5 years is given by

Business

1 answer:

bija089 [108]3 years ago

6 0

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment (PV)= $2,000

Number of periods (n)= 5*12= 60 months

Interst rate (r)= ?

Suppose an interest rate of 8% compounded monthly.

First, we need to determine the monthly interest rate:

i= 0.08/12= 0.0067

To calculate the future value after 5 years, we need to use the following formula:

FV= PV*(1+r)^n

FV= 2,000*1.0067^60

FV= $2,985.62

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Radar Company sells bikes for $480 each. The company currently sells 4,000 bikes per year and could make as many as 4,370 bikes

Hatshy [7]

Answer:

$65,000

Explanation:

The total cost of the additional order will be $46,000 of fixed costs and an additional $160 of variable costs for each of the 370 bikes. The additional production cost is:

$C=\$46,000+370*\$160\\C=\$105,200$

If each bike is going to be sold for $460, then the additional income (excluding taxes) from accepting this order is:

$I=(price*units)-cost\\I=(\$460*370)-\$105,200\\I=\$65,000$

Radar's additional income is $65,000.

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4 years ago

The two viking spacecraft did not find convincing evidence of life on mars, nor did the phoenix lander. do these results imply t

belka [17]

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3 years ago

When taxes increase, consumptiona. decreases, so aggregate demand shifts left. b. increases, so aggregate demand shifts right. c

LenKa [72]

Answer:

a. decreases, so aggregate demand shifts left.

Explanation:

When tax is increased, disposable income reduces and therefore consumption falls. The fall in consumption shifts the aggregate demand curve to the left.

I hope my answer helps you.

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3 years ago

An initial decrease in a bank's reserves will decrease checkable deposits A. by an amount equal to the decrease in reserves. B.

ASHA 777 [7]

Answer:

C. by an amount greater than the decrease in reserves.

Explanation:

Due to the deposit multiplier which is determined by the required ratio reserve, the amount of checkable deposits decrease much more than the amount of decrease in the reserves.

It works as detailed:

Deposit Multiplier ∆D = (1/rr) × ∆R where the variation of "D" is determined by the "rr" (Ratio Reseserve) times "R" (Changes in Reserves.)

If the "rr" it's keep at the same level then a change in the "R" (Reserves) will have an impact in the "D" (Deposit) multiplied by the "1/rr".

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3 years ago

Dave M. Company issues 500 shares of $10 par value Common Stock and 100 shares of $40 par value Preferred Stock as a basket for

Katen [24]

Answer:

Allocation

Common Stock $94,500

Preferred Stock $10,500

Journal Entry

Cash _____________________________$105,000

Common stock _____________________ $5000

Paid-in capital in excess of par - Common _$89,500

Preferred stock _____________________$4,000

Paid-in capital in excess of par - Preferred _$6,500

Explanation:

First, we need to calculate the Market value of both stock using the foloowinf formula

Market value = Numbers of shares x Market value per share

Market value of common stock = 500 x $198 = $99,000

Market value of preferred stock = 100 x $110 = $11,000

Total value = $99,000 + $11,000 = $110,000

Now calculate the weight of each sock

Weight of common stock $99,000 / $110,000 = 0.90

Weight of preferred stock = $11,000 / $110,000 = 0.10

Allocation of the sale price is as follow

Allocated sale price = Weight of Stock x Sale price

Allocated sale price of common stock = $105,000 x 0.90 = $94,500

Allocated sale price of common stock = $105,000 x 0.10 = $10,500

Common Sock is recorded separately as par value and paid-in capital excess of par as follow

Common Stock ( Par Value ) = 500 x $10 = $5,000

Common Stock ( Excess of Par ) = $94,500 - $5,000 = $89,500

Preferred Stock ( Par Value ) = 100 x $40 = $4,000

Preferred Stock ( Excess of Par ) = $10,500 - $4,000 = $6,500

7 0

3 years ago