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never [62]
2 years ago
7

A high-interest savings account pays 5. 5% interest compounded annually. If $300 is deposited initially and again at the first o

f each year, which summation represents the money in the account 10 years after the initial deposit? Sigma-Summation Underscript n = 1 Overscript 10 EndScripts 300 (0. 055) Superscript n minus 1 Sigma-Summation Underscript n = 1 Overscript 10 EndScripts 305. 5 (1. 055) Superscript n minus 1 Sigma-Summation Underscript n = 1 Overscript 10 EndScripts 316. 5 (0. 055) Superscript n minus 1 Sigma-Summation Underscript n = 1 Overscript 10 EndScripts 316. 5 (1. 055) Superscript n minus 1.
Business
1 answer:
Arte-miy333 [17]2 years ago
5 0

For the given question, the summation that represents the money in account is:

\begin{aligned}\sum_{10}^{n=1}316.5(1.055)^{n-1} \end{aligned}

The principal amount if compounded annually, the formula that represents the amount to be received after n years is:

\rm A = P(1 + \dfrac{r}{100})^t where A is the amount received after compounding, P is the principal, r is the rate of interest and t is the tenure.

<h3>Solution:</h3>

Given:

Annual interest rate(r) is 5.5%

Principal is(P) $300

Tenure is(t) 10 years

On substituting the values in the formula \rm A = P(1 + \dfrac{r}{100})^t

The amount received after compounding at the end of 1 year will be:

\rm A = 300(1 + \dfrac{5.5}{100})^1\\&#10;\\&#10;A=300(1.055)\\&#10;\\&#10;A=\$316.5

Similarly, the amount to be received after 2 years will be:

316.5+316.5(1.055)

The amount received after 10 years will be:

316.5+316.5(1.055)+316.5(1.055)^2+.......  upto 10 years

Therefore the summation that represents the money in account after 10 years is:

\begin{aligned}\sum_{10}^{n=1}316.5(1.055)^{n-1} \end{aligned}

Learn more about compound interest here:

brainly.com/question/25857212

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D. $4,100 dividend and a $6,900 tax free return of capital

Explanation:

5 0
3 years ago
You have the following information on Marco's Polo Shop: total liabilities and equity = $210 million; current liabilities = $50
KengaRu [80]

Answer:

$60 million

Explanation:

The quick ratio is  the financial ratio of the current assets less inventory to current liabilities. While the accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity.

This may be expressed mathematically as

Assets = Liabilities + Equity

Given that quick ration is 1.7 and current liabilities = $50 million

1.7 = current assets less inventory/$50 million

current assets less inventory = 1.7 * $50 million

= $85 million

The total asset is made up of the current assets less inventory, inventory, fixed assets. Let the balance for fixed assets be y

$85 + $65 + y = $210   (all amounts in millions)

y = $210 - $150   (all amounts in millions)

y = $60   (all amounts in millions)

3 0
3 years ago
Western Company is preparing a cash budget for June. The company has $11,000 cash at the beginning of June and anticipates $31,0
Semenov [28]

Answer:

Borrow $19,500

Explanation:

The movement in the cash balance between the beginning an end of a period may be expressed as

opening balance + cash collection - cash disbursed = closing balance

As such, where the  company has $11,000 cash at the beginning of June and anticipates $31,000 in cash receipts and $36,500 in cash disbursements during June, the expected closing balance

= $11,000 + $31,000 - $36,500

= $5,500

If the company is owing the bank $15,000 then the company would still owe

= $5,500 - $15,000

= ($9,500)

If the company is expected to maintain a balance of $10,000, the amount to be borrowed must be $10000 in excess of the amount owed the bank. Hence amount to be borrowed

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4 0
4 years ago
Assume a machine that has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power,
erik [133]

Answer:

purchase the machine because the expected rate of return exceeds the interest rate.

Explanation:

Given the cost of machine = $2000

If the firm borrows fund at an interest rate of 10% to buy the machine,

Interest paid on the cost of machine = 10% of $200

= 10/100 × $2000

= $200

Total amount that must be paid back for the machine by the firm = actual cost of machine + interest rate

= $2000 + $200

= $2,200

Since the additional revenue generated from the machine after all operating cost = $2,300

Profit accrued by the firm = Revenue - (actual cost of machine + interest)

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Based on the profit margin, it can be concluded that the firm can purchase the machine because the expected rate of return exceeds the interest rate.

Note that the expected rate of return is $300 (i.e $2300 - $2000) and the interest rate of is $200 (i.e 10% of $2000)

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3 years ago
When a consumer has evaluated alternatives in the purchase decision process and selected one, he still must determine from whom
hammer [34]

Answer:

The correct answer is when to buy.

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There are a number of factors that affect the price level in the market. For instance,

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  2. Business cycle
  3. Interest rates

Changes in these factors cause a change in the price of goods and services and other assets.

3 0
3 years ago
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