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nexus9112 [7]
2 years ago
10

Sandra wants to deposit $100 each year for her son. if she places it in an investment account that averages a 5% annual return,

what amount will be in the account in 20 years? How much will she have if the account earns 8% a year?
Business
1 answer:
stepan [7]2 years ago
4 0

If Interest rate = 5%

Using Financial calculator

Payments (PMT) = 100

Interest (I/Y) = 5%

Number of Years (N) = 20

[N = 20 ; I/Y = 5% ; PV = 0 ; PMT = 100 ; FV = ?]

Compute for FV

Future value = 100 * 33.0660

Future value = $3,306.60

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Currently, in the United States, the greates volume of goods and services are shipped by
Lerok [7]
Currently, in the United States, the greatest volume of goods and services are shipped by rail. 
5 0
3 years ago
Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter
Zina [86]

Answer:

<u>PV = 2,464,749.47</u>

Explanation:

Perptuities = ammount/ (rate - growth)

175,000/(0.097-0.038) = $2,966,101.695

This value is two years from the present day.

Notice:<em> "it will be received two years from today"</em>

<em>So we need to adjusted to bring it to present</em>

<em>\frac{Principal}{(1 + rate)^{time} } = PV</em>

\frac{2,966,101.695}{(1 + 0.097)^{2} } = PV

<u>PV = 2,464,749.47</u>

5 0
2 years ago
Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The
wlad13 [49]

Answer:

a) Net Present Value = $ 304,495.12  

b) Beyer should accept the investment.

Explanation:

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

Year                                                     PV

1        77,000 × 1.12^(-1)       =  68,750.00  

2        54,000 × 1.12^(-2)    =  43,048.47  

3        82,000 ×  1.12^(-3)  =   58,365.98  

4      172,000 ×   1.12^(-4) =  109,309.11  

5       423,000 ×  1.12^(-5)=  <u>240,021.56  </u>

Total Present Value             519,495.12  

Initial cost                             <u>(215,000)</u>

Net Present Value                 <u>304,495.12 </u>

Net Present Value = $ 304,495.12  

b) Decision :

Beyer should accept the investment. This will increase the wealth of the shareholders by $ 304,495.12

8 0
3 years ago
In January 2021, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing fees of $50,000 were paid to acquir
ale4655 [162]

Answer:

c. $215,000

Explanation:

The computation of the amount charged to income is shown below:

But before that first we have to determine the book value as on Jan 2024 which is

Total patent cost

= $200,000 + $50,000

= $250,000

Amortized cost till year 2024 is

= ($250,000 ÷ 10 years) × 3 years

= $75,000

The three years is counted from 2021 to 2024

Now

Book value on Jan 2024 is

= $250,000 - $75,000

= $175,000

So,

Amount charged to income  is

= $175,000 + $40,000

= $215,000

6 0
2 years ago
Consider luxury weekend hotel packages in las vegas. When the price is $250, the quantity demanded is 2,000 packages per week. W
Aleonysh [2.5K]

Answer: Elasticity of luxury weekend hotel packages in las vegas is -1.432.

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the good.

Mid point method-

e=\frac{Q2-Q1}{\frac{Q1+Q2}{2} } * \frac{\frac{P1+P2}{2} }{P2-P1}e=\frac{1700-2000}{\frac{2000+1700}{2} } * \frac{\frac{280+250}{2} }{280-250}

e=\frac{-300}{1850} } * \frac{265}{30}

e= -0.16216*8.8333

e= -1.432

Elasticity of luxury weekend hotel packages in las vegas is -1.432.



5 0
2 years ago
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