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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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In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to p
kicyunya [14]

Answer:

A. Differentiation strategy.

Explanation:

In a market different firms try to maintain a competitive edge over others. This is achieved by using various strategies like: Differentiation strategy, Local strategy, Regional strategy, Cost-leadership strategy, Global strategy.

In the given scenario ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price.

This is a differentiation strategy where a firm tries to make their product different from.otgers in order to maintain a competitive advantage over others

5 0
2 years ago
Bramble Corp. has $3960000 of 9% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value
natta225 [31]

Answer: Credit of $217480 to Paid-in Capital in Excess of Par

Explanation:

The following information is given in the question as:

Debit: Bonds payable = $1,250,000

Debit: Premium on bonds payable = $92480

Credit: Common stock = $1,125,000

Credit: Paid in capital in excess of Par = $217480

The above were calculated as:

Common stock = ($1250,000/$1,000) × 30 × 30

= $1250 × 90

= $1,125,000

% Conversion will be:

= $1,250,000 / $3960000 = 0.32

Unamortized bond premium will then be:

= 0.32 × $289,000

= $92,480

Paid in capital in excess of par will be:

= $1,250,000 + $92,480- $1,125,000

= $217,480

Therefore, the answer will be to

"Credit of $217480 to Paid-in Capital in Excess of Par"

4 0
2 years ago
Bubba is a shrimp farmer. In an ironic​ twist, Bubba is allergic to​ shellfish, so he cannot eat shrimp. Each day he has a​ one-
attashe74 [19]

Answer and Explanation:

In the absence of sufficient information about the expenses and other factors, which related to money, we have to consider market price as the value of shrimp.

The value of Shrimp is $10,700 per ton because, In this scenario, we have only market rate to consider the value of shrimp.

Therefore $10,700 is the price of 1-ton shrimp.

6 0
3 years ago
A mortgage is paid off in 30 years with a total of $124,000. It had a 2% interest rate that compounded monthly. What was the pri
Natasha2012 [34]

Answer:

the Principle, PV on the mortgage was $68,086.64.

Explanation:

The Principle on the mortgage, PV is determined as follows :

FV = $124,000

N = 30 × 12 = 360

P/ yr = 12

PMT = $0

R = 2%

PV = ?

Using a Financial Calculator, the Principle, PV on the mortgage was $68,086.6399 or $68,086.64.

8 0
3 years ago
During inflationary periods, assets such as TIPS, gold, and real estate are used as _____________ hedges. Money demand will decr
noname [10]

Answer:

Inflation; decrease.

Explanation:

An inflation can be defined as the sustained or persistent rise in the prices of goods and services at a specific period of time. Also, an inflation hedge refers to the investment that are used to protect the eroding purchasing power of a currency (money) as a result of a persistent increase in price level due to inflation.

During inflationary periods, assets such as TIPS, gold, and real estate are used as inflation hedges.

Additionally, money demand will decrease when interest rates, payment technology, inflation risk, and the liquidity of other assets decrease. This simply means that, the desired holding of financial assets in the form of money (monetary value) is dependent on factors such as interest rates, inflation risk, payment technology etc.

5 0
3 years ago
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