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vampirchik [111]
3 years ago
14

Karl opens a savings account with $2500. He deposits $1500 every year into the account that has a 0.75% interest rate, compounde

d monthly. If he doesn't withdraw any money, what will the account balance be in 10 years?
Business
1 answer:
zhuklara [117]3 years ago
5 0

Answer:

Total FV= $29,335.25

Explanation:

<u>First, we need to calculate the future value of the initial investment ($2,500) using the following formula:</u>

FV= PV*(1 + i)^n

PV= $2,500

i= 0.0075

n=10*12= 120 months

FV= 2,500*(1.0075^120)

FV= $6,128.39

<u>Now, the future value of the $1,500 annual deposit:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

We need to determine the effective annual rate:

Effective annual rate= (1.0075^12) - 1= 0.0938

FV= {1,500*[(1.0938^10) - 1]} / 0.0938

FV= $23,206.86

Total FV= $29,335.25

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Hawkins Poultry Farms is considering the purchase of feeding equipment that costs $139,000 and will produce annual cash flows of
pychu [463]

Answer:

NPV = $1,564.65

Explanation:

Here is the full question :

Hawkins Poultry Farms is considering the purchase of feeding equipment that costs $139,000 and will produce annual cash flows of approximately $36,000 for five years. The equipment is expected to be sold at the end of five years for $40,000.

What is the net present value of the proposed investment? Hawkins requires a 15 percent return on all capital investments

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-139,000

Cash flow each year from year 1 to 4 = $36,000

Cash flow in year 5 = $36,000 + $40,000 = $76,000.

i = 15%

NPV = $1,564.65

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

7 0
2 years ago
In addition to joint ownership ventures in china, intel has made substantial outlays in its own manufacturing and research facil
Rudik [331]
This is an example of "direct investment".
Direct investment alludes to an interest in a business venture in a nation or country other than the investor's's country intended to gain a controlling interest for the remote business undertaking and It is in this way recognized from an outside portfolio speculation by an idea of direct control.
3 0
3 years ago
You buy a security that will pay you $500 in 1 year. You pay $455 today. If you hold this security to maturity, your yield to ma
Elis [28]

If you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.

<h3>What is the yield to maturity?</h3>

The yield to maturity (YTM) refers to the total rate of return earned by a bond when it makes all interest payments and repays the original principal.

YTM is equal to a bond's internal rate of return (IRR) if the bond were held to maturity.

<h3>Data and Calculations;</h3>

Face value of security = $500

Price paid today = $455

Yield to maturity = (Face Value/Current Price) x (1/Years to Maturity) - 1

= $500/$455 x 1/1 - 1

= 0.0989

OR

Yield in dollars = $45 ($500 - $455)

= 0.0989 ($45/$455 x 100)

Rate of return = 9% ($45/$500 x 100)

Thus, if you hold this security to maturity, your yield to maturity is <u>9.89%</u> while your rate of return is <u>9%</u>.

Learn more about yield to maturity and rate of return at brainly.com/question/5524579

3 0
2 years ago
Read 2 more answers
Elaborate on two instances at the workplace where "silence is golden " may be applicable.
damaskus [11]

Answer:

It could be applicable when there is a negative compliment: When this happens it is best and advisable to be silent about it and continue with the work activities. Negative compliments are usually hurtful to the recipients and tempers may flare up if words are exchanged.

It could also be applicable when important informations are passed during meetings: Some meetings at work requires dissemination of information with various steps in accomplishing them. If an individual isn’t silent and pays less attention, a step may be missed and will make the worker being unable to perform the task.

5 0
3 years ago
Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and
sergeinik [125]

Answer:

Consider the following analysis.

Explanation:

Sales/Deals Returns and Allowances :

Deals returns and remittances is a detail showing up in the wage explanation. At the point when this sum is huge in extent to add up to deals, it shows that a business is experiencing difficulty transporting amazing products to its clients.

The business returns and remittances line thing is displayed as a subtraction from the gross deals line thing, and is proposed to decrease deals by the measure of item comes back from clients and deals stipends allowed. It is followed in the pay proclamation by a net deals line thing, or, in other words that includes the gross deals line thing and the negative sum in the business returns and recompenses line thing.

This detail is the conglomeration of two general record accounts, which are the business returns account and the business recompenses account. Both of these records are contra accounts, which implies that they counterbalance net deals. The normal equalization in these records is a charge, or, in other words of the common credit balance in the gross deals account.

The two records may at times be joined into a solitary record in the general record. This commonly happens when the parities in these records are generally little, so there is no reason for following returns and stipends independently.

The extra stock raised from the business return and stipends must be added back to the stock by following advances and records:

1). On consistent schedule, all stock so raised by deals return and stipends must be reclaimed to the stock by issued stock got back note.

2). At the point when an item is physically returned, it builds stock and reductions related expense of products sold perceived at the season of offer. The accompanying diary passage is made :

Inventory A/c Dr

To Cost of goods sold A/c

(Debit the inventory and Credit the cost of goods sold)

7 0
3 years ago
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