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iris [78.8K]
2 years ago
14

A town wishes to build a new school that will cost $15,000,000. The school is to be built in 10 years. The town will provide fun

ding for the new school by depositing a uniform amount into an investment fund paying 5% per year, compounded annually. How much must be set aside in each of the 10 years to provide for the new school?
Business
1 answer:
Stella [2.4K]2 years ago
7 0

Answer:

Annual deposit= $1,192,568.62

Explanation:

Giving the following formula:

Future Value= $15,000,000

Number of periods= 10 years

Interest rate= 5% compounded annually

<u>To calculate the annual deposit, we need to use the following formula:</u>

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

A= annual deposit

Isolating A:

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

A= (15,000,000*0.05) / [(1.05^10) - 1]

A= $1,192,568.62

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aleksley [76]

Answer:

 Ending cash balance = $13,000

Explanation:

<em>A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.</em>

With help of a cash budget, a business can plan ahead for  the usage of its surplus funds and how to finance its deficit cash position

Ending cash balance = Beginning cash balance + cash receipts - cash payment

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 Ending cash balance = $13,000

7 0
3 years ago
Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outc
lozanna [386]

Answer:

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Explanation:

The market value of the unlevered equity can be calculated using the following formula:

Expected value = Σpx

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x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.

Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)

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5 0
3 years ago
I WILL MARK BRAINLIEST IF CORRECTHow does the value of the cars produced by the Japanese company within the United States impact
goblinko [34]

Answer:The value of cars produced by a Japanese company are part of United States Gross Domestic Product (GDP) as long as the cars are produced in a factory located within U.S. territory.

The reason why is that GDP includes the final value of all goods and services produced within a country, during a specific period of time (usually a year). If the cars are produce in U.S. territory, they are counted as part of U.S. GDP, even if the company is from Japan or any other country.

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2 years ago
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the wacm=$81
then divide the fixed cost by the wacm

$891000 / $81=11000 units

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3 years ago
Which type of investment involves lending money and charging interest on it?
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C. Debit investment
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