1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
seropon [69]
3 years ago
15

Suppose $40,000 was invested on January 1, 1980 at an annual effective interest rate of 7% in order to provide an annual (calend

ar-year) scholarship of $5,000 each year forever, the scholarships paid out each January 1.
(a) In what year can the first $5,000 scholarship be made?
(b) What smaller scholarship can be awarded the year prior to the first $5,000 scholarship?
Business
1 answer:
azamat3 years ago
8 0

Answer:

a). The first $5,000 will be paid on January 1, 1982

b). The smaller scholarship that will be received=$2,800

Explanation:

a). This can be expressed as follows;

I=PRT

where;

I=Interest amount

P=Initial value of investment

R=Annual interest rate

T=number of years the money is invested for

In our case;

I= $5,000

P=$40,000

R=7%=7/100=0.07

T=t

Replacing;

5,000=40,000×0.07×t

5,000=2,800 t

t=5,000/2,800

t=1.786 years which will be 2 years since although the first amount will be in 1.7 years, the interest has to be paid on January 1 of the next year

1980+2=1982

The first $5,000 will be paid on January 1, 1982

b). What to receive after 1 year

I=PRT

where;

P=$40,000

R=7%=7/100=0.07

T=1

I=(40,000×0.07×1)=2,800

The smaller scholarship that will be received=$2,800

You might be interested in
Philippe Organic Farms has total assets of $689,400, long-term debt of $198,375, total equity of $364.182, net fixed assets of $
Margarita [4]

Answer:

correct option is  B. 1.40

Explanation:

given data

total assets = $689,400

long-term debt = $198,375

total equity = $364.182

net fixed assets = $512,100

sales = $1,021,500

profit margin = 6.2 percent

solution

we get here first current assets that is express as

current assets = Total assets - net fixed assets   ...................1

put here value

current assets = $689,400 - $512,100

current assets = $177300

and now we get Current liabilities that is express as

Total liabilities  = Total assets - Total equity .............2

Current liabilities + Long term debt = Total assets - Total equity    

Current liabilities = Total assets - Total equity - Long term debt ...........3

put here value

Current liabilities = $689400 - $364182 - $198,375

Current liabilities = $126843  

so here Current ratio will be

Current ratio = current assets ÷ Current liabilities  .............4

Current ratio = \frac{177300}{126843}  

Current ratio = 1.40

so correct option is  B. 1.40

6 0
3 years ago
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $46,000. At the end of its five-year service life, i
marusya05 [52]

Answer:

Given

Cost $46000

Life= 5 years

Salvage Value= $ 4000

Total miles = 165,000

Formula

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

1. Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Depreciation Straight Line Method= $ 46000- $4000/ 5= $ 8,400

The depreciation expense using the straight line method does not change unless the salvage value is reached

Years        Depreciation      Accumulated Dep          Book Value

                                                                                (Cost - Accu. Dep)

a. 2021       $ 8,4000               8400                            37600

b. 2022       $ 8,4000               16,800                         29,200

c. 2023        $ 8,4000              25200                          20,800  

d. 2024       $ 8,4000              33,600                        12,400

e. 2025       $ 8,4000             42000                        4000

2. Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

In double declining method the rate is multiplied to the cost to get the depreciation expense. 40 % of $ 46000= $ 18400

Each year the rate is multiplied with the remaining book value after deducting the depreciation expense from the cost as $ 46000- $ 18400= $ 27600

Next years depreciation will be $ 27600 * 40%= $ 11040.

This will be added in the original depreciation expense $ 18400 + $ 11040 = $ 29440 and deducted from cost to get the book value. $ 46,000- $ 29440 = $ 16560.

Again rate will be multiplied and each years depreciation will be calculated similarly.

It has been summarized in the table below.

Years       Dep Rate      Dep Expense       Accu. Dep.     Book Value

a. 2021        40%           18400                   18400               27600

b. 2022       40%           11040                     29440               16560

c. 2023       40%             6624                     36064               9936

d. 2024       40%             3974.4                  40,038.4         5961.6

e. 2025       40%            2384.64                   42,0423.4     3576.96

3. Depreciation per unit= (Cost -Salvage value) / Total units of production* Units of Production

Years       Mileage      Depreciation                    Depreciation

a. 2021      35,000     ($ 42000/165000)*35000        8909.09

b. 2022     37,000      ($ 42000/165000)*37000       9418.18

c. 2023      28,000     ($ 42000/165000)*28000        7127.27

d. 2024      33,000      ($ 42000/165000)*33000        8400

e. 2025      34,000    ($ 42000/165000)*34000         8654.54

7 0
3 years ago
​Electric, Inc. was incorporated on January​ 1, 2016. Electric issued 7 comma 000 shares of common stock and 1 comma 200 shares
marta [7]

Answer:

$48,000

Explanation:

The computation of the total amount paid to the preferred shareholder is shown below:

= Number of preferred stock shares × par value × dividend rate × number of years

= 1,200 shares × $100 × 10% × 4 years

= $48,000

Simply we multiplied with the number of preferred stock with the par value, its dividend rate and the time period so that the correct value can come

All other information which is given is not relevant. Hence, ignored it

7 0
3 years ago
Which of the following mechanisms would be most likely to help motivate managers to act in the best interests of shareholders?
myrzilka [38]

Answer:

The correct answer is d) Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.

Explanation:

Option D. represents two situations that perfectly describe the interest that the shareholders pursue: the maximization of the profits of the company where they have their resources invested.

The shareholder, on the other hand, is also an investor, since he contributes capital with a view to obtaining a dividend.

Its investment is said to be in equities, given that there is no contract through which the shareholder will receive fixed fees in return for his investment. Their remuneration is through two ways:

  1. Dividend
  2. Increase in the price of the company. This is produced by its good progress and its ability to generate future benefits, as well as by the increase in assets through past benefits.
5 0
3 years ago
The price (P) of designer jeans is affected by the supply (S) and the demand (D).
monitta
The price of designer jeans would likely increase if its demand increases and there is no changes in supply.
5 0
3 years ago
Read 2 more answers
Other questions:
  • As jessica enters audio jetz car electronics department, she is asked by the salesperson if she has seen the new plug-in cell ph
    8·2 answers
  • The management at torque autos inc. and redwing automobiles inc. realized that by combining the two entities the stakeholders of
    12·1 answer
  • Which of the following accounts will give u the least access to your money
    10·2 answers
  • What is the benefit of using a graph? Select all that apply.
    7·2 answers
  • Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year
    6·1 answer
  • A checking account is sometimes called a..
    12·2 answers
  • For many​ years, the International Nickel Company of Canadathe International Nickel Company of Canada essentially operated as a
    6·1 answer
  • David is the CEO of a large fast food chain. One part of his job is to meet with
    9·1 answer
  • Mary’s hourly wage is twice that of John’s. John’s and Dennis’ hourly wages together total $60. If Dennis earns 1/3 of John’s ra
    14·1 answer
  • 11. Calculating the price elasticity of supply Charles is a retired teacher who lives in New York City and provides math tutorin
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!