BUSINESS COLLEGE

you are going to deposit $19000 today. You will earn an annual rateof 3.3 percent for 11 years, and then earn an annual rate of 2.7 percent for 14 years. how much will you have in your account in 25 years?

Answers

Answer 1
Answer:

Answer:

After 25 years you will have in your account $42,782.05.

Explanation:

First find the Future value of $19000 invested today at the end of 11 years.

PV = - $19,000

Pmt = $0

P/yr = 1

r = 3.30%

n = 11

FV = ?

Using a Financial calculator, the Future Value (FV) after 11 years will be $27,155.46.

Use the $27,155.46 to find future value at the end of the next 14 years at the rate of 2.70%

PV = - $27,155.46

Pmt = $0

P/yr = 1

r = 3.30%

n = 14

FV = ?

Using a Financial calculator, the Future Value (FV) after 14 years will be $42,782.05.

Thus, after 25 years you will have in your account $42,782.05.

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Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 75,000 units of product: net sales $1,500,000; total costs and expenses $1,780,200; and net loss $280,200. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,106,000 $598,000 $508,000 Selling expenses 522,200 95,000 427,200 Administrative expenses 152,000 57,000 95,000 $1,780,200 $750,000 $1,030,200 Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $40,010 plus a 5% commission on net sales. 3. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019.
Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items:A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1.$0 of the $60,000 annual property taxes paid on February 1.For the quarter ended September 30, the amount of net income that Rouge should report is:_______.a. $235,000.b. $250,000.c. $255,000.d. $270,000.

The cost of an asset is $ 1 comma 050 comma 000​, and its residual value is $ 130 comma 000. Estimated useful life of the asset is ten years. Calculate depreciation for the second year using the doubleminusdecliningminusbalance method of depreciation.​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

Answers

Answer:

$168,000

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)

Depreciation factor = 2 x (1/10) = 0.2

depreciation expense in year 1 = 0.2 x $1,050,000 =$210,000

book value at the beginning of year 2 = $1,050,000 - $210,000 = $840,000

depreciation expense in year 2 = 0.2 x $840,000 = $168,000

In a closed economy, public saving is the amount of a. income that households have left after paying for taxes and consumption. b. spending that the government undertakes in excess of the taxes it collects. c. income that businesses have left after paying for the factors of production. d. tax revenue that the government has left after paying for its spending.

Answers

Answer:

In a closed economy, public saving is the amount of

d. tax revenue that the government has left after paying for its spending.

Explanation:

Public saving or budget surplus in a closed economy describes the excess of government revenue (obtained through taxation of individuals and businesses in the economy) and government expenditures on goods and services. In an open economy, transfers are deducted before arriving at the public saving.  In all economies, the addition of private (individual and business) and public savings result to national investments.

Ten years ago, Hailey invested $2,100 and locked in an annual interest rate of 8 percent for 30 years (ending 20 years from now). Aidan can make a 20-year investment today and lock in an interest rate of 9 percent. How much money should he invest now in order to have the same amount of money in 20 years as Hailey? (

Answers

Answer:

$3,770.53

Explanation:

Given data;

Amount Hailey invested = $2,100

annual interest rate = 8 Percent for 30 years ending 20 years from now

Aidan can make an investment for 20 years at 9 percent.

To determine how much money Aidan should invest in order to have the same amount of money in 20 years as Hailey =

First, is to determine how much Hailey will have 20 years from now:

FV20 = PV -10 × (1 + i)³⁰

FV20 = $2,100 × (1 + 0.08)³⁰

= $2,100 × 10.06266

= $21,131.59

Therefore, Aidan will have to deposit:

PV = FV20 ÷ (1 + i)N

PV = $21,131.59 ÷ (1 + 0.09)²⁰

= $21,131.59 ÷ 5.60441

= $3,770.53

On July 1 of the current year, Marcia purchases a new home and borrows $320,000. Marcia is required to pay two points on the loan. The loan is secured by the residence and the charging of points is an established business practice in the area. The term of the loan is 20 years, beginning on July 1 of the current year. How much, if any, of the points may Marcia deduct in the current year?

Answers

Answer:

$6,400.

Explanation:

Because these points are paid in connection with the purchase of a principal residence, Marcia may deduct $6,400 ($320,000 × 2%) as interest expense during the current year.

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $4.75, variable costs are $2.00 per dozen, and total fixed costs are $1100.00. How many dozens of ears of corn must Corny and Sweet sell to breakeven? (Round your final answer to the nearest unit amount.)

Answers

Answer:

Selling price = $4.75

Variable costs= $2.00

Contribution margin ratio = contribution margin / sale

= ($4.75 - $2.00) / $4.75 = 57.8%

Break even sale in dollars = fixed costs / contribution margin ratio

= $1100 / 57.8% = $1903

Breakeven Sales = $1903

Explanation:

You are evaluating two different silicon wafer milling machines. The Techron I costs $234,000, has a three-year life, and has pretax operating costs of $61,000 per year. The Techron II costs $410,000, has a five-year life, and has pretax operating costs of $34,000 per year. For both milling machines, use straight-line depreciation to zero over the projectâs life and assume a salvage value of $38,000. If your tax rate is 35 percent and your discount rate is 10 percent. Required:
Compute the EAC for both machines.

Answers

T-1:

Table-1 vide annex

Applying EAC formula

c = \frac{r(NPV)}{(1-(1+r)^{-n} )}

c = (r(NPV))/((1-(1+r)^(-n) ))

c: equivalent annuity cash flow

NPV: Net present value

r: rate per period

n: number of periods

we have

c = (0.1*(-246155.15))/((1-(1+0.1)^(-3) ))

c = $ - 98 982,63

T-2

Table-2 vide annex

Applying EAC formula

c = \frac{r(NPV)}{(1-(1+r)^{-n} )}

c = (r(NPV))/((1-(1+r)^(-n) ))

c: equivalent annuity cash flow

NPV: Net present value

r: rate per period

n: number of periods

we have

c = (0.1*(-369644.05))/((1-(1+0.01)^(-5) ))

c = - $ 97 511.17

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