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Tju [1.3M]
3 years ago
7

How much would you have to invest today in the bank at an interest rate of 10% to have an annuity of $5600 per year for 7 years,

with nothing left in the bank at the end of the 7 years? (Round to nearest dollar)
Business
1 answer:
Shtirlitz [24]3 years ago
8 0

Answer:

PV = $27,263.15

It will be needed to deposit the lump sum of $27,263.15

Explanation:

The question is asking for how much will you need to deposit in a lump sum  today to withdraw for seven years the sum of $5,600 with an interest rate of 10%

In other words it is asking us for the preset value of an annuity of $5,600 with interest of 10%

Using the present value of an annuity formula of $1 we can solve for the present value of that annuity, which is the amount needed to generate this annuity

C * \frac{1-(1+r)^{-time} }{rate}= PV\\

We post our knows value and solve it:

5,600 * \frac{1-(1+0.10)^{-7} }{0.10}= PV\\

PV = $27,263.15

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Answer: The correct answer is "(C) The Industrial Revolution".

Explanation: The Industrial Revolution is the process of economic, social and technological transformation,

During this period the greatest set of economic, technological and social transformations in the history of mankind since the Neolithic period was experienced, which saw the transition from a rural economy based mainly on agriculture and commerce to an urban, industrialized and economic economy mechanized.

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2 years ago
One of the​ trade-offs Tesla faces is between safety and the maximum range someone can drive an​ all-electric car before having
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<u>Answer:</u>

<em>A creation conceivable outcomes outskirts demonstrates the most extreme sum that an economy can deliver.</em>

<u>Explanation:</u>

The creation plausibility outskirts is a marginalist model that mirrors the most extreme amounts of merchandise and ventures that a nation or endeavour is fit for delivering in a given period and dependent on certain generation factors and innovative learning. Hence there are three circumstances in the profitable structure of a nation or endeavour:

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7 0
3 years ago
Solomon Ski Company manufactures snow skis. During the most recent accounting period, the company’s finishing department transfe
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The various costs for Solomon Ski Company during the recent accounting period are determined as follows:

1. Cost per equivalent unit is <u>$65.</u>

2. Cost of finished goods transferred out from the finishing department is <u>$269,750</u>.

3. Cost of the ending WIP inventory is <u>$15,600</u>.

<h3>What is the cost per equivalent unit?</h3>

The cost per equivalent unit refers to the average cost per unit based on the total production costs divided by the total equivalent units of production.

The equivalent units of production depend on the degree or percentage of completion for the various cost classes.

<h3>Data and Calculations:</h3>

Transfer to finished goods = 4,150

Ending inventory = 480

Degree of completion of the ending inventory = 50%

Total equivalent units = 4,390 (4,150 + 480 x 50%)

Total production costs = $285,350

Cost per equivalent unit = $65 ($285,350/4,390)

Cost of finished goods = $269,750 ($65 x 4,150)

Cost of the ending WIP = $15,600 ($65 x 240)

Thus, equivalent units refer to the degree of work completed per unit.

Learn more about equivalent units of production at brainly.com/question/16259709

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7 0
1 year ago
The acquisition cost of a plant asset does not include multiple choice incidental costs, such as title fees, sales commissions,
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Answer:

The answer is ' repair costs resulting from damage to the plant asset while it was being unpacked'

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The acquisition cost of a plant asset does not include repair costs resulting from damage to the plant asset while it was being unpacked. Why? - Because this doesn't lead to the improvement of the asset.

Acquisition costs comprise the commission paid, legal fees, cost of improving the assets and all necessary cost paid to get the assets running.

7 0
3 years ago
A company uses a process costing system. its assembly department's beginning inventory consisted of 52,400 units, 75% complete w
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Total transferred units = 121,500 
Direct labor costs = $30,000
 Completed unit from the ending inventory = 42,400 x 25% = 10600
 Now the total units transferred = 121,500 + 10600 = 132100
 Direct labor cost per equivalent unit = Direct labor costs / total units transferred
  = 30,000 / 132100 = 0.227
 Direct labor cost per equivalent unit = 0.23.
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3 years ago
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