You are saving money for a down payment on a new house. You intend to place $7,500 at the end of each year for three years into an account earning 5% per year. At the end of the fourth year, you will place $10,000 into this account. How much money will be in the account at the end of the fourth year?

Answers

Answer 1

Answer:

$37,848.9

Explanation:

We can use the interest rate formula to figure out how much is in the account after the first 3 years. The interest rate formula is show below:

[tex]A = P (1 + r)^t[/tex]

Let me delineate what each part of this equation means:

A = The total amount

P = The initial amount of money put into the account

R = the interest rate

T = Time

The equation gives us the following:

You place $7,500 each year for three years The interest rate is 5%At the end of the 4th year $10,000 will be placed in the account

First, let's calculate the P in the equation.

You put $7,500 each year for 3 years, so multiply 7,500 by 3.

[tex](7,500) * (3) = 22,500[/tex]

Next, let's start putting everything into the equation, like this:

[tex]A = 22,500(1 + .05)^3[/tex]

(When doing interest rate you have to move the decimal over twice)

Now that we have the equation, let's solve it!

[tex]A = 22,500(1.05)^3\\A = 22,500(1.15763)\\A = 26,046.6[/tex]

After 3 years $26,046.6 is in the account.

But, don't forget the last part of the question!

But you have a fourth year too!

Add the $10,000 onto the $26,046.6

That equals $36,046.6.

Lets plug this back into the equation for the final year

[tex]A = 36046.6(1.05)^1\\A = 37848.9[/tex]

Thus, the final answer will be $37,848.9

Hope this helps!

- Kay :)

Answer 2

After saving the money for the four years and by adding $10,000 in the end of fourth year the money the amount that will be saved is $48,942.23.

What is Future Value?

The temporal value of money is based on the simple notion that one dollar today is worth more than one dollar in the future. This is because one can invest the dollar they have today and have it increase at a rate of return, or interest, over time.

The formula for future value is-

[tex]\begin{aligned}\text{FV}&=\text{CF}\times\dfrac{(1+r)^n-1}{\text{r}}+\text{FV}\\&=\$7,500\times\dfrac{(1+0.05)^4-1}{0.05}+\$7,500\\&=\$48,942.23\end{aligned}[/tex]

Thus, the future value by the end of the fourth year is $48,942.23.

For further details about the future value refer to this link:

https://brainly.in/question/40202543

Related Questions

PLS HURRY!!!!
Write a short paragraph explaining the ecological benefits to high-yield agricultural techniques.

Answers

Answer:

The results suggest that more intensive production methods require less land, cause less soil loss, consume less water and may result in the production of fewer pollutants. Contrary to common belief, results from the study show that organic production is more ecologically damaging than conventional methods.

Explanation:

A corporate bond is quoted at a price of 98.96 and has a coupon rate of 4.8 percent, paid semiannually. What is the current yield?
A) 4.24 percent
B) 4.85 percent
C) 5.36 percent
D) 5.62 percent
E) 4.66 percent

Answers

Answer:

B) 4.85 percent

Explanation:

The computation of the current yield is shown below:

As we know that

Current yield is

= Coupon rate ÷ Price of the corporate bond

= 4.8% ÷ 98.96

= 4.85%

Hence, the current yield is 4.85%

Therefore the correct option is B.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Hank owns a gym called Ultimate Fitness. During the past year, Hank sold some equipment and other assets to upgrade his facility. He sold an elliptical trainer for $400. The buyer also included a juicer machine worth $100. The elliptical trainer had an original cost of $1500 and had accumulated depreciation for tax purposes of $800. What is Hank's realized gain or loss on the sale?A) Loss of $1000B) Loss of $200C) Loss of $1100D) Loss of $300

Answers

Answer:

B) Loss of $200

Explanation:

gain/loss resulting from the exchange = total consideration received - asset's basis

assets's basis = $1,500 - $800 = $700total consideration received = $400 + $100 (juicer machine) = $500

gain/loss resulting from the exchange = $500 - $700 = -$200

In this case, Hank can report a net loss resulting from the exchange since the consideration received in exchange for the elliptical trainer was lower than its book value.

The government of Paulaville decides to set prices of wheat. Calculate the amount of the shortage or surplus if the government sets a price floor at $2.

Answers

Answer:

I have uploaded the picture with the relevant information below.

Explanation:

We can see in this picture that the market equilibrium is met at a price of $5, thus, $5 is the equilibrium price, because demand and supply are both 125 at this point.

If the govenment sets a price floor of $2, there will be no effect, because the price floor is non-binding.

A non-binding price floor is a minimum price set by the government that is actually lower that the equilibrium market price. In this case, the price of the market will be allowed to go to $5, and reach equilibrium, so the policy osf setting the $2 price floor will have no effect.

BBQ Corporation has a target capital structure that is 70 percent equity, 30 percent debt. The flotation costs for equity issues are 15 percent of the amount raised; the flotation costs for debt are 8 percent. If BBQ needs $150 million for a new manufacturing facility, what is the cost when flotation costs are considered?
a) $130.65 million
b) $150 million
c) $165.42 million
d) $172.22 million
e) $185 million

Answers

Answer:

d) $172.22 million

Explanation:

given data

equity = 70 %

debt = 30 %

flotation costs equity = 15 %

flotation costs debt = 8 %

BBQ = $150 million

solution

first we get here weighted average flotation cost that is express as

weighted average flotation cost = ( Flotation cost debt × Weight debt ) + ( Flotation cost equity × Weight equity ) .................1

put here value and we get

weighted average flotation cost = (8% × 0.30) + (15% × 0.70)

weighted average flotation cost = 0.024 + 0.105

weighted average flotation cost = 0.129 = 12.9%

and

now we get here cost of funds that is express as

Cost of funds = Amount raised ÷ (1 - Weighted average floatation cost) .............2

put here value we get

Cost of funds = [tex]\frac{150,000,000}{1-0.129}[/tex]

Cost of funds = [tex]\frac{150,000,000}{0.871}[/tex]

Cost of funds = $172,215,844

so correct answer is d) $172.22 million

Total revenue for producing 8 units of output is $48. Total revenue for producing 9 units out output is $63. Given this information, the:
A. Average revenue for produce 9 units is $1
B. Average revenue for producing 9 units is $15
C. Marginal revenue for producing the 9 unit is $1
D. Marginal revenue for producing the 9 units is $15

Answers

Answer:

D. Marginal revenue for producing the 9 units is $15

Explanation:

TR(8) = $48

TR(9) = $63

MR(9) = TR(9) - TR(8) = $63 - $48 = $15

AR(8) = TR(8) / 8 = $48/8 = $6

AR(9) = TR(9)/9 = 63/9 = $9

Note: TR=Total revenue, AR= Average Revenue and MR=Marginal Revenue

So, the only correct option is option d

The EU regulates taxes on Internet sales and the amount of pollution differently than the U.S. government. U.S. companies doing business in the EU:A. Are required to comply with EU regulations only if their main headquarters are located within the European Union B. Must pay taxes to the EU when conducting all business globally if they wish to do any business in the EU. C. Must comply with EU regulations when doing business in the European Union only D. Are never required to comply with EU regulations as long as they are headquartered in the United States E. Have the option to conduct business under either EU or U.S. regulations

Answers

Answer: C. Must comply with EU regulations when doing business in the European Union only.

Explanation:

European Union tax and pollution laws are meant to bind only the area in the EU and not other areas. For instance, a Nebraska state law that is not law in other parts of the country only covers Nebraska and so can only be enforced there.

The same logic goes for the EU. Their laws are only applicable if you are in their area of control. This means that U.S. companies doing business in the EU must comply with EU regulations when doing business in the EU only.

A balance sheet that displays assets and liabilities into current versus noncurrent categories is commonly called a:________a) categorized balance sheet. b) current balance sheet. c) classified balance sheet. d) dual display balance sheet.

Answers

Answer:

c) classified balance sheet.

Explanation:

A classified balance sheet can be described as a balance sheet in which the information about assets, liabilities, and shareholders' equity of a company is presented by aggregating or classifying it into subcategories of accounts.

The advantage of a classified balance sheet is that it easier to read and it makes it easier for readers to obtain required information than when the information is just presented in a large number of line items.

The classifications mostly used within a classified balance sheet include Intangible assets, fixed assets (or Property, Plant, and Equipment), current assets, current liabilities, long-term liabilities, and shareholders' equity.

In accounting, the addition of these classifications is required to match the accounting equation stated as follows:

Total assets = Total liabilities + Shareholders' Equity

A major advantage of the weighted average method of inventory costing is that:_________ a. cost flows correspond with the physical flow of merchandise. b. it matches current costs with revenues. c. recent costs are assigned to the ending inventory balance. d. it is relatively easy to apply.

Answers

Answer:

The answer is "Option d".

Explanation:

In the inventory costing method, the actual cost is fixed to an identifiable product segment with using the weighted average method, the prices of its products for sale are divided into the number of products still in the store. Its mean weight of each component was calculated with this calculation. Its mean value consists of the sum of all factors multiplied by mass and instead divided by mass sum.

(TCO B) WordPerfect Corporation noticed that the more of its word processing software packages it sold, the more customers complained or suggested improvements. In such a situation, WordPerfect Corporation has the opportunity to:_________.
a. steadily improve its word processor software.
b. be acquired by a larger company that can take over the development of the product.
c. develop a completely new program.
d. discontinue production.

Answers

Answer:

a. steadily improve its word processor software.

Explanation:

Remember, although we are told WordPerfect Corporation customers complained they also suggested improvements. Meaning, the product isn't entirely bad but needs some improvements.

Instead of developing a completely new program or discontinue production, It makes logical sense for them to improve the word processor software to fit the needs of the customers.

The risk-free rate of return is 7.5%, the expected rate of return on the market portfolio is 14%, and the stock of Xyrong Corporation has a beta coefficient of 2.8. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $25 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 16% per year on all reinvested earnings forever.What is the intrinsic value of a share of Xyrong stock?if the market price of a share is currently $67, and you expect the market price to be equal to the intrinsic value one year from now, calculate the price of the share after one year from now.What is your expected one-year holding-period return on Xyrong stock?

Answers

Answer:

The intrinsic value of a share of Xyrong stock = $68.075.

the expected one-year holding-period return on Xyrong stock = 0.27716.

Explanation:

Without mincing words, let's dive straight into the solution to the question above:

The intrinsic value of a share of Xyrong stock can be calculated as given below;

The intrinsic value of a share of Xyrong stock = [ (1 + growth rate) × G° ] ÷ (cost of equity - growth rate). -------------------(1).

=> Where, growth rate = 16%( 1 - 0.4) = 9.6% = 0.96.

=> Cost of equity = 2.8( 14 - 7.5) + 7.5 = 25.7% = 0.257.

Thus, slotting in the values into the equation (1) above, we have;

The intrinsic value of a share of Xyrong stock = [ (1 + growth rate) × G° ] ÷ (cost of equity - growth rate).

The intrinsic value of a share of Xyrong stock = [( 1 + 0.96) × 10] ÷ (0.257 - 0.96) = $68.075.

Hence, the expected one-year holding-period return on Xyrong stock = G° × ( 1 + growth rate) + [ (The intrinsic value of a share of Xyrong stock) × (1 + growth rate )] - market price of share ÷ market price of share.

= [ 10 × ( 1 + 0.96) + {$68.075 × (1 + 0.96)} - 67] ÷ 67 = 0.27716.

Consider a capacity constrained process producing a high profit margin product. What will the impacts on revenue and profits be if processing time for the bottleneck resource is reduced by 10% while everything else remains the same?
A) No impact on revenue or profits
B) Higher revenue and profits
C) Lower revenue and profits
D) Higher profits with no change in revenue

Answers

Answer:

The answer is "Option B"

Explanation:

In this question, Higher incomes and profits are correct because it minimizes the congestion operating frequency by 10%. It takes a long time and decreasing the processing, which would have had an impact on revenue and profit directly. Performance would grow, generating additional sales, that's why choice b is correct.

Explain the importance of feedback in the communication process.(3marks)

Answers

The importance of feedback in the communication process is it helps you give your honest opinion on that product, etc.

These items are taken from the financial statements of Cullumber Company at December 31, 2022.

Buildings $88,872

Accounts receivable 10,584

Prepaid insurance 2,688

Cash 9,946

Equipment 69,216

Land 51,408

Insurance expense 655

Depreciation expense 4,452

Interest expense 2,184

Common stock 50,400

Retained earnings (January 1, 2022) 33,600

Accumulated depreciation—buildings 38,304

Accounts payable

Answers

Answer:

lkpojiuhygtfrdrswaqzxcvbnmkgsawru

Stephen is a day trader who constantly buys and sells only medical-related stocks. Stephen has _____ asset allocation strategy and a(n) _____ security selection strategy.

Answers

Answer: a passive; active

Explanation:

When a person or institution is said to have a passive asset allocation strategy it means that they either trade the same assets over and over or apply the same weighting to the asset class every time. Stephen only trades medical-related stocks so is using passive allocation.

An active security selection strategy means that the person or institution constantly changes and trades the stocks in their portfolio much like Stephen does when he constantly trades stock. Stephen is therefore using an active security selection strategy.

The present value of a $100 three-year annuity due (first cash flow occurs today) discounted at a rate of 10% is equal to ________.

a. $300.00
b. $248.69
c. $273.55
d. $135.17

Answers

Answer: c. $273.55

Explanation:

The present value of an annuity due can be calculated thus;

= Annuity * present value interest factor of annuity due, 10%, 3 years

= 100 * 2.7355

= $273.55

Answer:

The present value of a $100 three-year annuity due (first cash flow occurs today) discounted at a rate of 10% is equal to ________.

b. $248.69

Explanation:

a) Data and Calculations:

The amount of the Annuity due = $100

Number of years for the annuity due= 3

Discount rate of the annuity due = 10%

Annuity factor from annuity table = 2.4869

Therefore, the present value of the annuity due = $248.69 ($100 * 2.4869).

This firm is currently operating at 84 percent of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?

Answers

Answer:

Most of the numbers are missing, so I looked for a similar question:

The Steel Mill is currently operating at 84 percent of capacity. Annual sales are $28,400 and net income is $2,250. The firm has current liabilities of $2,700, long-term debt of $9,800, net fixed assets of $16,900, net working capital of $5,000, and owners' equity of $12,100. All costs and net working capital vary directly with sales. The tax rate and profit margin will remain constant. The dividend payout ratio is constant at 40 percent. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?

if the firm is operating at full capacity, then it will need to raise new debt:

EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))

A/S = $24,600 / $28,400 = 0.866

ΔSales = $28,400 x 12% = $3,408

L/S = $2,700 / $28,400 = 0.095

PM = $2,250 / $28,400 = 0.079

FS = $28,400 x 1.12 = $31,808

(1 - d) = 1 - 40% = 0.6

EFN = (0.866 x $3,408) - (0.095 x $3,408) - (0.079 x $31,808 x 0.6) = $2,951.33 - $323.76 - $1,507.70 = $1,119.87

but if the firm is operating only at 84% (16% spare capacity), then it will not need to raise new debt:

EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))

A/S = $7,700 / $28,400 = 0.271

since there is 16% of spare capacity, no new fixed assets will be required

ΔSales = $28,400 x 12% = $3,408

L/S = $2,700 / $28,400 = 0.095

PM = $2,250 / $28,400 = 0.079

FS = $28,400 x 1.12 = $31,808

(1 - d) = 1 - 40% = 0.6

EFN = (0.271 x $3,408) - (0.095 x $3,408) - (0.079 x $31,808 x 0.6) = $923.57 - $323.76 - $1,507.70 = -$907.89

Dusty Corporation began business on January 1, 2020. The corporate charter authorizes issuance of 100,000 shares of .01 par value common stock and 10,000 shares of $1 par value, 10% cumulative preferred stock. On July 1, 2020, Dusty issued 30,000 shares of common stock in exchange for three years of rent on a retail location. The cash rental price is $4,200 per month and the rental period begins July 1. How should Dusty adjust its financial statement for the issuance of the shares on July 1?

a. Increase cash by $151,200, and increase prepaid rent by $151,200.
b. Increase prepaid rent by $151,200, and increase common stock by $151,200.
c. Increase prepaid rent by $151,200, increase common stock by $300 and increase additional paid-in capital by $150,900.
d. Increase prepaid rent by $151,200, increase common stock by $150,900, and increase additional paid-in capital by $300.

Answers

Answer:

The answer is "Option c".

Explanation:

Dr. Cr.

Prepayment of rent 151,200

Popular stock 300

Extra capital expenditures 150,900

Dusty Corporation should adjust its financial statement to record the issuance of the shares on July 1, 2020 as follows:

c. Increase prepaid rent by $151,200, increase common stock by $300, and increase additional paid-in capital by $150,900.

Data and Calculations:

Authorized share capital:

100,000 shares, Common Stock at $0.01 par value = $1,000 ($100,000 x $0.01)

10,000 shares, 10% Cumulative Preferred Stock at $1 par value = $10,000 (10,000 x $1)

Analysis of Issuance:

30,000 shares, Common Stock at $0.01 par value = $300 (30,000 x $0.01)

Rental cost = $151,200 ($4,200 x 36 months)

Prepaid Expense $151,200 Common Stock $300 Additional Paid-in Capital $150,900 ($151,200 - $300)

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An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is five percent, what is the current market value of the bond?

Answers

Answer:

Bond Price = $828.4091365 rounded off to $828.41

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 40

Total periods (n) = 20 * 2 = 40

r or YTM = 0.05 or 5%

The formula to calculate the price of the bonds today is attached.

Bond Price = 40 * [( 1 - (1+0.05)^-40) / 0.05] + 1000 / (1+0.05)^40

Bond Price = $828.4091365 rounded off to $828.41

Issued common stock to owners in exchange for $26,000 cash. Purchased $6,500 of equipment, paying $1,950 cash and signing a promissory note for $4,550. Received $11,700 in cash for consulting services performed in January. Purchased $1,950 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $20,800. Paid $975 on account. Paid $3,900 to employees for work performed during January. Received a bill for utilities for January of $4,400; the bill remains unpaid. What is the amount of total revenue to be reported on the income statement for the month of January

Answers

Answer:

Explanation:

2333

If there is a net loss there will be a ___________ balance in the Income Summary account after all closing entries have been posted.

a. Debit
b. zero
c. Credit
d. not determinable

Answers

Explanation:

zero isthe right answer but i'm not 100%sure

One year ago, you purchased 162 shares of Best Wings stock at a price of $39.44 per share. The company pays an annual dividend of $0.79 per share. Today, you sold for the shares for $38.03 a share. What is your total percentage return on this investment?

Answers

Answer:

the total percentage return on this investment is -1.57%

Explanation:

The computation of the total percentage return on this investment is shown below:

The total return Per Share is

= [(Price at End - Price at Beginning) + Dividend ]

= [($38.03 - $39.44) + $0.79]

= -0.62

Now the total percentage return on this investment is

= Total return per share ÷ initial investment × 100

= -$0.62 / $39.44 × 100

=-1.57%

Hence, the total percentage return on this investment is -1.57%

Explain the usefulness of the theory of constraints in the determination of the most profitable product mix for this furniture manufacturer.

Answers

Answer: More workers would need to be employed to improve productivity time

Explanation:

The theory of constraint looks at identifying vital factors that limit or stands as an obstruction in achieving a goal and soughting out ways of improving the situation till there is no limiting factor. This theory means that for the furniture manufacturer, for him to have more productivity, he would need to get more hands on deck, to quicken operations, reduce production time and improve productivity.

You take out a 30-year mortgage to buy a house worth $415,000. The down payment is 17% and the annual interest rate is 3.5%. What are the monthly payments?

Answers

Answer:

The monthly payments are $1,546.73

Explanation:

The monthly payments can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the mortgage balance = Mortgage worth - (Mortgage worth * Percentage of down payment) = $415,000 - ($415,000 * 17%) = $415,000 - $70,550 = $344,450

P = Monthly payments = ?

r = Monthly interest rate return rate = 3.5% / 12 = 0.035 / 12 = 0.00291666666666667

n = number of months = 30 years * 12 months = 360

Substitute the values into equation (1) and solve for P, we have:

$344,450 = P * ((1 - (1 / (1 + 0.00291666666666667))^360) / 0.00291666666666667)

$344,450 = P * 222.694984964558

P = $344,450 / 222.694984964558

P = $1,546.73442715748

Approximating to 2 decimal places, we have:

P = $1,546.73

Therefore, the monthly payments are $1,546.73.

At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $46,000 with a yield to maturity of 5 percent.Given that she will not actually receive any interest payments until the bond matures in 10 years, how much interest income will she report this year assuming semiannual compounding of interest?

Answers

Answer:

Semiannual compounding of interest = $2,328.75

Explanation:

Given:

Semi annual rate = 5/2 = 2.5 = 0.025

P = $46,000

Find:

Semiannual compounding of interest

Computation:

Semiannual compounding of interest = 46,000[1 - (1 + 0.025)²]=

Semiannual compounding of interest = $2,328.75

What term represents a sample web page that replicates what the final website will look like?
O test page
O wireframe
O sitemap
O storyboard

Answers

Answer:

The answer is wireframe

Explanation:

Just took the test

Wireframe term represents a sample web page that replicates what the final website will look like.

What is website ?

A website, often known as a web site, is a collection of web pages and related material that is published on at least one web server and given a shared domain name.

The World Wide Web is the collective name for all publicly accessible websites. A company's internal website for its employees is an example of a private website that can only be accessed via a private network.

Most websites focus on a single subject or objective, including news, education, business, entertainment, or social networking. The navigation of the website, which frequently begins with a home page, is aided by hyperlinks between web pages.

On a variety of gadgets, including PCs, laptops, tablets, and smartphones, users can visit websites. A web browser is the name of the application used on these gadgets.

To know more about private network

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When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.

Answers

Answer:

True.

Explanation:

Basically, structuring an organization typically involves making strategic decisions between choosing decentralization or centralization decision-making policy.

Hence, structuring an organization includes making strategic decisions with respect to span of control such as stating or deciding on how many employees will report to a manager, functions of each managers and the departmentalization of each department in the organization so as to successfully achieve its aims, goals and objectives.

Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:

Activity Centers Cost Drivers Rate per Cost Driver Unit
Materials handling Pounds of material handled $17 per pound
Quality inspections Number of inspections $210 per inspection
Machine setups Number of machine setups $2,600 per setup
Running machines Number of machine-hours $22.00 per hour

Direct materials costs were $300,000 and direct labor costs were $150,000 during July, when the Fabrication Department handled 3,900 pounds of materials, made 790 inspections, had 50 setups, and ran the machines for 16,000 hours.

Required:
Use T-accounts to show the flow of materials, labor and overhead costs from the tour overhead activity centers through Work in Process Inventory and out to Finished Goods Inventory.

Answers

Answer:

Southwest Components

T-accounts:

Raw materials Inventory