All categories

3 years ago

Your mutual fund was valued at $237,500. It has lost 6% per year for the last 3 years. What is its value today?

Business

1 answer:

BartSMP [9]3 years ago

5 0

Answer:

$197,263.7

Explanation:

The current value can be found by use of the compound interest formula. Since the asset has been losing value at 6 % per year,

the interest rate will be -6%

The formula for compound interest is FV = PV × (1+r)^n

in this case

FV= current value

PV= $237,500

r= -6% or -0.06%

n= 3 years

Fv= $237, 500 x ( 1 + (-0.06)^3

Fv=$237,500 x (0.94)^3

Fv= $237,500 x 0.830584

Fv= $197,263.7

The current value =$197,263.7

You might be interested in

An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new venture. She invests her savings of

Lubov Fominskaja [6]

Answer:$141,000

Explanation:

Implicit cost related to the given question

Earning as a college faculty left = 70,000

Interest on own investment = 6% on 42,000 = 2520

Total implicit cost = 70,000+2520 = 72,520

Explicit cost the related to the given question

Rent of office equipment = 25,000

Hiring two students at 18,000 each = 36,000

Rent of office space = 10,000

Other variable expenses = 38,000

Total explicit cost = 25,000+36,000+10,000+38,000 = 109,000

Total Revenue = 250,000

Accounting profit = Total Revenue – Explicit Cost

Accounting profit = 250,000 – 109,000 = $141,000

6 0

4 years ago

Orange Superstore is largely customer centric and economical in its methods. The store sells the best quality products at prices

balandron [24]

Answer:

The correct answer is letter "D": cost advantage strategy.

Explanation:

Cost advantage strategy is a technique implemented by companies to provide equal benefits to consumers at a lower price than competitors. Firms achieve this practice by maximizing the utilization of technology, processes, and resources. If a company implements and sustains operations with a cost advantage strategy it is said it has obtained a comparative advantage.

7 0

3 years ago

On July 1, 2011, Hale Kennels sells equipment for $66,000. The equipment was originally purchased on July 1, 2007 at a cost $180

topjm [15]

Answer:

Accumulated Depreciation As of December 31, 2010 = $105,000

Explanation:

Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.

Annual depreciation:

= (cost of assets - salvage value)/ 5 years

= (180,000 -30,000)/5

=.$30,000

From July 1 2007 to December 31 2010 = 3 years 6 months = 42 months

So total accumulated depreciation at the end of 3 years 6 months :

= ( 30,000/12) × 42

= $105,000

Accumulated Depreciation As of December 31, 2010 = = $105,000

4 0

4 years ago

Dave Krug contributed $1,000 cash along with inventory and land to a new partnership. The inventory had a book value of $800 and

pav-90 [236]

Answer:

cash 1,000 debit

inventory 2,000 debit

land 5,000 debit

note payable 3,000 credit

Krug capital Account 5,000 credit

Explanation:

The land and inventories will be accepted at his market value.

Along with cash this are assets which enter the partnership so they are debited.

The note payable decreases the Krug capital contribution. It is credited.

Krug capital account balance will be to complete the entry and make debit = credit.

6 0

4 years ago

as a unit of measure, money makes it easier for consumers to do what? a. compare prices of different products. b. make a bigger

Snowcat [4.5K]

The correct option is C. Money as a unit of measurement makes it easier to have a better exchange rate withe other currencies. Which means that currencies from different countries can easily be exchange between two people, this brings an element of global trade into existence.

5 0

3 years ago

Read 2 more answers