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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

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Sheffield Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were
valentina_108 [34]

Answer:

$8,495,833

Explanation:

<u>Calculation of weighted-average accumulated expenditures</u>

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Mar 1    $6450000       10/12             $6450000*10/12       $5,375,000

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Dec 31  $8250000       0/12              $$8250000*0/12      <u>$0                </u>

Weighted Average Expenditures                                        <u>$8,495,833</u>

6 0
3 years ago
MATCH each economist to his economic belief.
Georgia [21]

1. Friedrich von Hayek------------Less government intervention gives  people more economic freedom.


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2. Milton Friedman---------Government should not control the  money supply.


Milton Friedman saw the 1920s as years of indispensable and sustainable growth in the economy. Amid this period the Federal Reserve outstandingly extended the cash supply. This development was not reflected in an expansion in the normal cost level, on the grounds that fiscal powers were killed by simultaneous increments in efficiency.  



3. John Maynard Keynes----------Government intervention is necessary  for stability.


John Maynard Keynes made the hypothetical contentions for another kind of monetary system: government intervention used to smooth out the business cycle. Keynes died in 1946, yet his thoughts made the Keynesian school of financial aspects and prompted the improvement of macroeconomics. Keynes' belief system overwhelmed the financial worldview from 1945 until the late 1970s. As indicated by Keynes, free markets don't generally contain self-adjusting components; some of the time government intervention is important to limit downturns and advance development. He trusted that without state help, the blasts and busts in the business cycle could winding wild.



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5 0
3 years ago
Read 2 more answers
What are the hardest gymnastics skills... give me two please
inessss [21]
Double standing backflip and handspring to turbine-turner
6 0
3 years ago
The 2019 balance sheet of Dyrdek’s Skate Shop, Inc., showed $530,000 in the common stock account and $2.3 million in the additio
Tju [1.3M]

Answer:

$80,000

Explanation:

The  \ expression \  for \  calculating \  cash  \ flow  \ to  \ stockholders \ is:

Cashflow  \ = \  Dividend  \ paid  \ during \  the \  year  \ -  \ change  \ in  \ t he \  value  \ of \  common  \ stock  \ during \  -  \ change \ in \ value \  of \ stock \ in \ the  \ previous \  yearHere;

Change \  in \  value  \ of \  Common  \ stock \ during  \ the  \ year \ = \ Value \ of \  Common \ stock \  of  \ the  \ Curren t \ Year -  Value\  of  \ Common  \ stock  \ of  \ the \ Previous \  Year

Change   \ in  \ valu e \  of  \ Additional \  paid  \ in  \ surplus \  account \  during  \ the \  year =

Value  \ of  \ Additional \ paid  \ in \  surplus \ account \ o f \  the  \ Current \  Year \ - \ Value \  of \ Additional \  paid  \ in \ surplus \  account \  of \ th e \ Previous \  Year

From the information given:

Dividend \ Payment  \ during \  the \  year 2020 = $320000

Value \  of  \ stock \  in \  current  \ yr= i.e. 2020 = $570000

Value \ of \ stock \ in \ previoius \ yr = i.e. 2019 = $530000

Change = $570000 - $530000 = $40,000

Value  \ of \  Ad ditional \  paid-in  \ surplus   \  acct  \ of    \ the  \ current  \ year = $2,500,000

Value  \ of \  Ad ditional \  paid-in  \ surplus   \  acct  \ of    \ the  \ previous  \ year = $2,300,000

Change = $2,500,000 - $2,300,000  = $ 200000

∴

By  \ using \  the  \ above \  information \ in \  the \  formula  \ for  \ calculating  \ the  \ cash  \ flow \ to

\ stackholder, \  we \ get:

= $320000 - $40,000 - $ 200000

= $80,000

4 0
3 years ago
Sykora Corp. sells $540,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is p
Katen [24]

The effective rate on these bonds is 7.17%

<h3>What is the effective rate?</h3>

The effective interest rate of a bond is the rate that equates the present value of the bond's future interest payments and the bond's maturity value to the bond's current market value.

The effective interest rate can be determined using a financial calculator:

  • Cash flow in year 0 = -490,222
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effective interest rate = 7.17%

To learn more about effective interest rate, please check: brainly.com/question/13735414

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7 0
2 years ago
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