Flagstaff Company has budgeted July production of 7,900 units. Variable factory overhead is $1.20 per unit. Budgeted fixed facto
2 answers:
You might be interested in
Answer:
The amount at the end of 30 years is $174,952.
Explanation:
In this problem we first need to determine the future value after making A = $100 investment for n = 10 years at r = 11% per year compounded monthly.
Then we need to compute the compound interest on this future value for 20 years at 11% interest compounded annually.
The future value formula is:
The amount is compounded monthly.
The rate of interest per month is:
The number of periods is: <em>n</em> = 10 × 12 = 120 months.
Determine the future value as follows:
Thus, the amount at the end of 10 years is $21700.
Now this amount is kept the account for t = 20 years and earns an interest at the rate of 11% compounded annually.
Amount at the end of 30 years =
Thus, the amount at the end of 30 years is $174,952.