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Marysya12 [62]
3 years ago
6

Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, sh

e intends to make you 9 more similar gifts, at the end of this year, next year, etc. If the savings account pays 8% interest, how much will you have
accumulated at the end of 10 years (one year after the last gift)?
Business
1 answer:
daser333 [38]3 years ago
3 0

Answer:

$156,454.87

Explanation:

Future Value of an annuity due: FV = Pmt x ((1+r)n -1))/r) x (1+r)

When Payment per period (PMT) = $10,000, Discount Rate per period= 8%,Number of periods (n) = 10

Future Value = $10,000 * ((1+0.08)^10 -1))/0.08) * 1.08

Future Value = $10,000 * [(1.08)^10 - 1 ]/ 0.08 * 1.08

Future Value = $10,000 * 2.15892499727-1/0.08 * 1.08

Future Value = $10,000 * 1.15892499727/0.08 * 1.08

Future Value = $10,000 * 14.486562465875 * 1.08

Future Value = 156454.87463145

Future Value = $156,454.87

You might be interested in
Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $500 million. Its balance sheet shows $110
solmaris [256]

Answer:

The best estimate of its stock price per share is $11.20

Explanation:

To compute stock price per share, the equation is shown below:

= Total number of equity ÷ Outstanding number of shares

where,

Total number of equity = Total corporate value - Notes payable - long term debt - preferred stock

= $500 - $110 - $90 - $20

= $280 million

And , outstanding number of shares is 25 million shares

Now, apply the above equation

So, stock price per share = $280 million ÷ 25 million shares = $11.20

Other accounts like retained earnings, total common equity is irrelevant

Hence, the best estimate of its stock price per share is $11.20

6 0
3 years ago
A developer would most likely obtain which of the following types of mortgage on a new subdivision?
ArbitrLikvidat [17]

Answer:

Blanket Mortgage

Explanation:

This type of mortgage would suit developers because of their intention to create many individual parcels out of a large tract of land in order to be resold gradually. Blanket mortgage is a loan type that are used for buying more than one real estate property. This loans are popular with builders and developers because they buy huge lands and sell them in small bits over a period.

7 0
3 years ago
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely
yKpoI14uk [10]

Answer:

$48.2

Explanation:

The increase in dividend is 3.9%

= 3.9/100

= 0.039

The recently paid dividend is $3.62

The required return is 11.7%

= 11.7/100

= 0.117

Therefore the price per share of the company stock can be calculated as follows

= 3.62(1+0.039)/0.117-0.039

= 3.62(1.039)/0.078

= 3.761/0.078

= 48.2

Hence the price per share is $48.2

5 0
3 years ago
A manufacturer of hospital supplies has a uniform annual demand for 320 comma 000 boxes of bandages. It costs ​$10 to store one
mash [69]

Answer:

100 times per year

Explanation:

Data provided in the question:

Annual Demand , D = 320,000 boxes

Cost of storing one box, C = $10

Plant set up cost for production, c = $160

Now,

The optimal ordering quantity = \sqrt\frac{2cD}{C}

or

The optimal ordering quantity = \sqrt\frac{2(160)(32,000)}{10}

or

= 3200

Therefore,

Number of timer in year company produce boxes = \frac{\textup{Demand}}{\textup{Optimal order quantity}}

= \frac{\textup{320,000}}{\textup{3,200}}

= 100 times per year

4 0
3 years ago
Over the course of 40 years, Sal grew his company to six package shipping stores. with his retirement approaching and the increa
Pavel [41]

Answer:

<em>C. defensive strategy </em>

Explanation:

<em><u>Defensive strategy</u></em><em> </em><em> is been represented by the effort of Sal's reduction</em>.

Basically in defensive strategy, the consumers and the customers are been hold-back by the companies and organisations. In this when competition increases the companies try to pull back their old customers from their competitors company.

In the scenario which is been represented in the question the Sal's company indulge's in the action that is known as defensive strategy.

7 0
3 years ago
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