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2 years ago

What does a future value measure

1 answer:

hjlf2 years ago

3 0

Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth in the future.

Future Value = Present Value (1 + (Interest Rate x Number of Years)) Let's say Bob invests $1,000 for five years with an interest rate of 10%. The future value would be $1,500.

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Lance’s Diner has a hot-lunch special each weekday and Sunday afternoon. The cost of food and other variable costs for each meal

Bumek [7]

Answer:

(a) $700

(b) $5.50

Explanation:

Weekly fixed costs = $6,000

Weekly Total meals = Average customers per day × No. of days

= 500 × 6

= 3,000

Fixed cost per meal = Weekly fixed costs ÷ Weekly Total meals

= $6,000 ÷ 3,000

= $2

(a) Lowest price in total = Number of customers × Variable costs for each meal

= 200 × $3.50

= $700

(b) Lowest price = Variable costs for each meal + Fixed cost per meal

= $3.50 + $2

= $5.50

5 0

3 years ago

How do you know you need to become a better test taker? A. You always get nervous before a test., B. You usually do better on ce

Tamiku [17]

Answer:

PREPARING FOR THE TEST. The key to confidence in anything is preparation, and tests are no different. ...

KNOW HOW YOU LEARN. ...

MAKE A PLAN. ...

FIND A BUDDY. ...

REVIEW MATERIAL. ...

REST & EAT. ...

HANDLING ANXIETY. ...

TAKING THE TEST.

Explanation:

7 0

2 years ago

Suppose that the demand elasticity for cigarettes is equal to 2.0. If the demand elasticity for Camel cigarettes is equal to 6.0

Lostsunrise [7]

Answer:

Let understand what elastic and inelastic demand is:

- If the small change in price causes heavy change in the quantity demanded then the demand is said to be elastic.

- Opposite to it is inelastic where even there is a very high change in the price but there is not so much effect on the quantity demanded.

Here, Camel cigarettes has a price elasticity of demand which is equal to 6 which means if the price suddenly increased, the quantity demanded will decrease. If any cigarette is having price elasticity of demand less than 2, it means it has less elasticity or if price increases very much then quantity demanded will not be affected so much.

8 0

3 years ago

West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bond

slava [35]

Answer:

4.93%

Explanation:

We use the Rate formula shown in the spreadsheet for this question

The time period is represented in the NPER.

Provided that,

Present value = $1,000 × 105% = $1,050

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 5.3% ÷ 2 = $26.5

NPER = 25 years - 2 years = 23 years × 2 = 46 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the yield to maturity is 4.93%

6 0

3 years ago

Sandra is hired by a sparkling water manufacturer. Her primary function at the company is transforming resources into goods and

marshall27 [118]

Sandra is involved in production.

Production can be described as the process of transforming or converting resources into goods and services.

In any organization, the depart that is in charge of production is the production or operation department.

Therefore, Sandra is involved in production.

The reason is that the transformation of resources into goods and services is her key job role at the company.

Learn more here: brainly.com/question/1462114.

4 0

2 years ago