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3 years ago

At a growth (interest) rate of 13 percent annually, how long will it take for a sum to double? To triple?

Business

1 answer:

Ad libitum [116K]3 years ago

7 0

Answer:

5.67 years

8.99 years

Explanation:

The relationship between future value, present value, interest rate as well as the duration of an investment(n) are depicted below with future value formula:

FV=PV*(1+r)^n

FV=future value( let us assume it is $10,000)

PV=$5,000( half of the present value)

r=13% interest rate

n=duration of the investment=the unknown

10,000=5000*(1+13%)^n

10,000/5000=1.13^n

2=1.13^n

take log of both sides

ln(2)=n ln(1.13)

n= ln(2)/ln (1.13) = 5.67 years

Triple of original investment:

FV=PV*(1+r)^n

FV=future value( let us assume it is $15,000)

PV=$5,000(one-third of the present value)

r=13% interest rate

n=duration of the investment=the unknown

15,000=5000*(1+13%)^n

15,000/5000=1.13^n

3=1.13^n

take log of both sides

ln(3)=n ln(1.13)

n= ln(3)/ln (1.13) = 8.99 years

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Answer and Explanation:

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The average cost per unit is

= $108,750 ÷ 25,000 units

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Now the cost per unit is

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The Remaining cost for 35000 units ($200,100 - $44,000) $156,100

Divide by Purchase cost per unit of 35000 units $4.46

Now the cost of goods sold are as follows

1. Under the FIFO method

Beginning 11,000 × $4.00 $44,000

Purchased 14,000 × $4.46 $62,440

Total 25,000 $1,06,440

2. Under the LIFO method

Purchased 25,000 × $4.46 $1,11,500

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4 years ago

"The maximum coverage provided by Securities Investor Protection Corporation for securities held in a customer's account is:"

Vika [28.1K]

Answer:

$500,000 USD

Explanation:

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3 years ago

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malfutka [58]

Answer:

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Explanation:

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Transfer payment is a form of reallocation of resources.

I hope my answer helps you

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Explanation:

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3 years ago

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Pani-rosa [81]

Answer:

False

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3 years ago