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SSSSS [86.1K]
3 years ago
8

Beverly Hills started a paper route on January 1. Every three months, she deposits $550 in her bank account, which earns 8 perce

nt annually but is compounded quarterly Four years later, she used the entire balance in her bank account to invest in an investment at 7 percent annually. How much will she have after three more years?
Business
1 answer:
aleksandrvk [35]3 years ago
6 0

Answer:

Total amount= $12,558.68

Explanation:

Giving the following information:

Every three months, she deposits $550 in her bank account, which earns 8 percent annually but is compounded quarterly Four years later, she used the entire balance in her bank account to invest in an investment at 7 percent annually.

First, we need to calculate the total accumulated money after four years with the following formula.

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

A= deposit= 550

N= 16

i=0.08/4= 0.02

FV= {550*[(1.02^16)-1]}/0.02= 10,251.61

Now, we calculate the second investment:

FV= PV*(1+i)^n= 10,251.62*(1.07^3)= $12,558.68

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During a presidential campaign, the incumbent argues that he should be reelected because GDP grew by 12 percent during his 4-yea
KengaRu [80]

Answer: The real GDP per person grew by 8%. Option C is the correct option

Explanation:

To calculate the real GDP per person, we have to calculate the real GDP growth rate in respect to the growth in population and deflator rate, then multiply it with the GDP growth.

GDP deflator = Nominal GDP ÷ Real GDP

The nominal GDP which includes the addition of population will grow by 4% since the population growth was 4%

GDP deflator increase by 6%

Therefore;

Real GDP = 4% ÷ 6% = 0.66667

THE REAL GDP PER PER PERSON

12% × 0.66667 = 8.00004%

Therefore the the real GDP per person is 8%, which is less than what he said.

8 0
3 years ago
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $44,309.00 exactly 16.00 years from tod
LenKa [72]

Answer:

$11,160.097

Explanation:

Data provided in the question:

Future value of machine = $44,309.00

Time, n = 16 years

Discount rate, r = 9.00% = 0.09

Now,

The amount Derek is will to pay will be the present value  of the machine

Also,

we know

Future value = Present value × (1 + r)ⁿ

on substituting the respective values, we get

$44,309.00 = Present value × (1 + 0.09 )¹⁶

or

$44,309.00 = Present value × 3.97

or

Present value = $44,309.00 ÷ 3.97

or

Present value = $11,160.097

6 0
2 years ago
Suppose that your firm has spent several decades establishing a well-known brand name through advertising. If other firms are pr
-Dominant- [34]
Location because it was spent on most and the decades were filled with them
4 0
2 years ago
Windsor, Inc. sells merchandise on account for $3700 to Morton Company with credit terms of 2/10, n/30. Morton Company returns $
IrinaK [193]

Answer:

Dr. Cash                          $2,842

Dr. Discount Expense    $58

Cr. Account Receivable $2,900

Explanation:

Terms 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

Sales = $3,700

Returns = $800

Amount Due = $3,700 - $800 = $2,900

As the payment is made within discount period, so discount will be availed

Discount = $2,900 x 2% = $58

Cash Paid = $2,900 - $58 = $2,842

7 0
3 years ago
Q 11.20: Katie Inc. reported net income of $171,000 for the current year and paid dividends of $26,000 on common stock. It also
Leviafan [203]

Answer:

The company's return on common stockholders’ equity for the current year is 8%

Explanation:

<em>Step 1: Determine net income available to common stockholders</em>

The net income available to common stockholder can be expressed as;

net income available to common stockholders=net income-preferred stocks dividends

where;

net income=$171,000

preferred stocks dividends=$10,000×0.06×100=$60,000

replacing;

net income available to common stockholders=171,000-(10,000×0.06×100)=$111,000

<em>Step 2: Determine the company's return on stockholder's equity for the current year</em>

This can be expressed as;

The company’s return on common stockholders’ equity for the year=net income available to common stockholders/(common stock holders equity on January 1+common stockholders equity on December 31)/2

where;

net income available to common stockholders=$111,000

common stock holders equity on January 1=$1,200,000

common stockholders equity on December 31=$1,600,000

replacing;

($111,000/ ($1,200,000 +$1,600,000)/2))=(111,000/1,400,000)×100=7.93%=8%

The company's return on common stockholders’ equity for the current year is 8%

4 0
2 years ago
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