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3 years ago

13

You invest $1,000 in a fund. You check your statement at the end of April and you have lost 13%. When the statement for May come

s, you see you have gained 13% in May. What is the value of your account

1 answer:

asambeis [7]3 years ago

8 0

Answer:

13%*$1000=.13*1000

$870+$130=$1000

Explanation:

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Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account receivable for $25,000. Th

N76 [4]

Answer:

e. None of these.

3 0

3 years ago

I need help on number 8 9 and 10 please help

elena55 [62]

Answer:

8. The opportunity cost is c. wearing the shoes

9. To gain the most satisfaction possible

10. A new toy is less exciting to a child with many toys

Explanation:

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3 years ago

Problem 6-3 Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cas

Vikki [24]

Answer:

Year 1 = $1,100

Year 2 = $1,330

Year 3 = $1,550

Year 4 = $2,290

(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:

To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:

$FV=P(1+r)^{t}$

$FV=1,100(1.06)^{3} +1,330(1.06)^{2} +1,550(1.06)+2,290$

= $6737.51

(b) If the discount rate is 14 percent, then the future value of these cash flows in Year 4:

$FV=1,100(1.14)^{3} +1,330(1.14)^{2} +1,550(1.14)+2,290$

= $7415.17

(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:

$FV=1,100(1.21)^{3} +1,330(1.21)^{2} +1,550(1.21)+2,290$

= $8061.47

8 0

3 years ago

Suppose you've just inherited $66,000 from your rich Aunt. You're trying to decide whether to keep the $66,000 in cash so that y

Flauer [41]

Answer:

Opportunity cost of holding the money = $1.650

Explanation:

Opportunity cost is the value of the next best alternative sacrificed in favour of a decision.

The opportunity cost of holding the money is the interest on deposit that would be have been earned should it be invested at the savings rate.

Interest on savings deposit = interest rate × deposit

= 2.5%× 66,000= $1,650

Opportunity cost of holding the money = $1.650

3 0

3 years ago

Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000

avanturin [10]

Answer:

Option (D) is correct.

Explanation:

Preferred dividend per year:

= (Outstanding preferred stock × Par value of preferred stock ) × 5% preferred stock

= (1,000 × $100) × 5%

= ($100,000) × 5%

= $5,000

Any balance left over would be paid to common stockholders.

Year 1:

Paid to preferred stockholders = $2,000

Paid to common stockholders = 0

Year 2:

Paid to preferred stockholders = $5,000

Paid to common stockholders = ($6,000 - $5,000)

= $1,000

Year 3:

Paid to preferred stockholders = $5,000

Paid to common stockholders = ($32,000 - $5,000)

= $27,000

Therefore,

Total amount of dividends paid to preferred Shareholders:

= Year 1 + Year 2 + Year 3

= $2,000 + $5,000 + $5,000

= $12,000

Total amount of dividends paid to common Shareholders:

= Year 1 + Year 2 + Year 3

= $0 + $1,000 + $27,000

= $28,000

5 0

3 years ago