BUSINESS COLLEGE

with financial calculator You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 4% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to the nearest cent.

Answers

Answer 1
Answer:

Answer:

FV= $6,308.12

Explanation:

Giving the following information:

Semiannual deposit= $1,000

Number of periods= 6

Interest rate= 4%= 0.04= 0.04/2= 0.02

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= semiannual deposit

FV= {1,000*[(1.02^6) - 1]} / 0.02

FV= $6,308.12

In a financial calculator:

Function: CMPD

Set: End

n= 6

i= 2

PV= 0

PMT= 1,000

FV= solve= 6,308.120963

Related Questions

Carlos, the HR Director of a large paper manufacturing company, is studying the company's turnover costs. He has accounted for most of the easily calculable costs, but he is concerned about the hidden costs of turnover. Given this information, which of the following is most likely a cause of concern for Carlos?a. Missed project deadlines b. Employee referral fees c. Preemployment medical expenses d. Accrued vacation expenditures
Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company’s stock is 12 percent, what will a share of stock sell for today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Which of these statements about corporate bonds is correct?
Sherman Peterson is an attorney in Los Angeles. Peterson uses the direct write-off method to account for uncollectible receivables.At January 31, 2014, Peterson’s accounts receivable totaled $15,000. During February, he earned revenue of $18,000 on account and collected $19,000 on account. He also wrote off uncollectible receivables of $1,800 on February 28, 2014.Requirements1.Use the direct write-off method to journalize Peterson’s write-off of the uncollectible receivables. 2.What is Peterson’s balance of Accounts Receivable at February 28, 2014?
Which of the following deposit requirements pertains to a monthly depositor who has accumulated employment taxes of $2,900 at the end of October

Mitchell Company was authorized to issue 50,000 shares of common stock. The company issued 27,000 shares of stock and later purchased 5,000 shares of treasury stock. The number of outstanding shares of common stock is: A. 45,000. B. 28,000. C. 22,000. D. 17,000.

Answers

Answer:

C. 22,000.

Explanation:

The company issued just 27,000 shares of the total autorized, before of reaquired the stocks these was the outstanding shares of common stock.

But later they decided to repurchased 5,000 shares this transcation in the open market it's known as treasury stock.

The company reacquired a portion of previously issued shares, in this case , 27,000 outstanding shares minus 5,000 shares repurchased by the company.

If the marginal cost of producing the fifth unit of output is higher than the marginal cost of producing the fourth unit of output, then at five units of output, average total cost must be rising.a. True
b. False

Answers

Answer: a. True

Explanation:

Marginal Cost as well known is the cost of producing an extra unit of a good. Average Cost on the other hand is the cost of producing all the goods divided by the number of units that are produced.

It therefore stands to reason that if goods are getting more expensive to produce, the Average Cost will rise.

For example, take 2 scenarios.

Scenario 1.

Cost of producing units 1 to 5 is $2 each.

Average Cost = (2 + 2 + 2 + 2 + 2) / 5

= 10/5

Average Cost = $2

Scenario 2

Cost of Producing Units 1 to 5 are;

Unit 1 - $2

Unit 2 - $2

Unit 3 - $2

Unit 4 - $2

Unit 5 - $4

Average cost at unit 5 = (2 + 2 + 2 + 2 + 4)/5

= 12/5

= $2.40

Average Cost has increased by $0.40

The expected average rate of return for a proposed investment of $5,610,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $16,830,000 over the 20 years is (round to two decimal points). a.15.00% b.30.00% c.1.50% d.60.00%

Answers

Answer:

b.30.00%

Explanation:

Calculation to determine what the expected total net income of $16,830,000 over the 20 years is

Expected total net income =($16,830,000/20)/($5,610,000/2)*100

Expected total net income=$841,500/$2,805,000

Expected total net income =30.00%

Therefore the expected total net income of $16,830,000 over the 20 years is 30.00%

The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month period. Machine Hours Mfg. Overhead April 90,000 $ 170,000 May 80,000 $ 153,000 June 110,000 $ 198,000 July 95,000 $ 181,000 Using the high-low method, compute the fixed element of Olsen's

Answers

Answer:

$33,000

Explanation:

The calculation of the fixed cost and the variable cost per machine hour by using high low method is shown below:

Variable cost per hour = (High manufacturing overhead cost - low manufacturing overhead cost) ÷ (High machine hours - low machine hours)

= ($198,000 - $153,000) ÷ (110,000 hours - 80,000 hours)

= $45,000 ÷ 30,000 hours

= $1.5

Now the fixed cost is

= High manufacturing overhead cost - (High machine hours × Variable cost per hour)

= $198,000 - (110,000 hours × $1.5)

= $198,000 - $165,000

= $33,000

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,100 + $2.00q Utilities $5,100 + $0.50q Supplies $1,300 + $0.40q Equipment depreciation $18,100 + $2.50q Factory rent $8,500 Property taxes $2,700 Factory administration $13,300 + $0.60q The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 66,780 Indirect labor $ 11,680 Utilities $ 7,590 Supplies $ 3,190 Equipment depreciation $ 28,100 Factory rent $ 8,900 Property taxes $ 2,700 Factory administration $ 15,050 Required: 1. Prepare the Production Department’s planning budget for the month. 2. Prepare the Production Department’s flexible budget for the month. 3. Calculate the spending variances for all expense items.

Answers

Answer:

Packaging Solutions Corporation

1. Planning Budget

Direct labor                              $68,460

Indirect labor                            $12,500

Utilities                                       $7,200

Supplies                                     $2,980

Equipment depreciation        $28,600

Factory rent                              $8,500

Property taxes                          $2,700

Factory administration           $15,820

2. Flexible Budget

Direct labor                             $65,200

Indirect labor                            $12,100

Utilities                                       $7,100

Supplies                                   $2,900

Equipment depreciation        $28,100

Factory rent                             $8,500

Property taxes                         $2,700

Factory administration          $15,700

3. Spending Variances:

                                                  Flexible  Actual       Spending

                                                  Budget  Budget       Variance

Direct labor                             $65,200  $66,780     $1,580 U

Indirect labor                            $12,100    $11,680       $420 F

Utilities                                       $7,100    $7,590       $490 U

Supplies                                   $2,900     $3,190       $290 U

Equipment depreciation        $28,100  $28,100        $0     None

Factory rent                             $8,500   $8,500        $0     None

Property taxes                         $2,700   $2,700        $0     None

Factory administration          $15,700  $15,050        $650 F

Explanation:

a) Data and Calculations:

Planned labor-hours in March = 4,200

Actual labor-hours in March = 4,000

Cost Formulas

Direct labor $16.30q

Indirect labor $4,100 + $2.00q

Utilities $5,100 + $0.50q

Supplies $1,300 + $0.40q

Equipment depreciation $18,100 + $2.50q

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60q

Actual Cost Incurred In March:

Direct labor                      $ 66,780

Indirect labor                     $ 11,680

Utilities                               $ 7,590

Supplies                             $ 3,190

Equipment depreciation $ 28,100

Factory rent                      $ 8,900

Property taxes                  $ 2,700

Factory administration   $ 15,050

Flexible Budget:

Direct labor $16.30 * 4,000 = $65,200

Indirect labor $4,100 + $2.00  * 4,000 = $12,100

Utilities $5,100 + $0.50 * 4,000 = $7,100

Supplies $1,300 + $0.40 * 4,000 = $2,900

Equipment depreciation $18,100 + $2.50 * 4,000 = $28,100

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60 * 4,000 = $15,700

Planning Budget

Direct labor $16.30 * 4,200 = $68,460

Indirect labor $4,100 + $2.00 * 4,200 = $12,500

Utilities $5,100 + $0.50 * 4,200 $7,200

Supplies $1,300 + $0.40 * 4,200 $2,980

Equipment depreciation $18,100 + $2.50 * 4,200 = $28,600

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60 * 4,200 = $15,820

Final answer:

The problem involves calculating the planning budget, flexible budget, and spending variances for the Production Department of Packaging Solutions Corporation. The planning budget is based on the expected output, the flexible budget adjusts according to actual results, and the spending variances give the difference between budgeted and actual costs.

Explanation:

The question falls under the field of cost accounting in Business studies. Here, we'll need to calculate the planning budget, the flexible budget, and the spending variances for the Production Department of Packaging Solutions Corp.

1. Planning Budget: The planning budget is based on the expected labor-hours and the production output associated with those labor-hours. In this case, the planned labor hours were 4,200.

2. Flexible Budget:

The flexible budget adjusts the planning budget to reflect actual operational results. The actual hours worked in March were 4,000, which is what we'll use for the flexible budget calculations.

3. Spending Variances:

Spending variances are the differences between what was budgeted (either in the planning budget or the flexible budget) and actual results. They can be calculated by subtracting the actual costs from the budgeted costs. This will provide insights into areas where spending was over or under the budgeted amounts.

Learn more about Budget Variance Analysis here:

brainly.com/question/34659622

#SPJ3

Assume that you are given a payoff function that is a straight line with slope 3 and y-intercept $-200. This payoff function is for an expiration in 3 months. Assume that the current price of the underlying stock is $60 and the annual risk free rate is 2%. What is the price of this payoff

Answers

Answer:

price of the payoff is -$19.01

Explanation:

The computation of the price of payoff is shown below:

But before that we have to do the following calculations

Equation of payoff is

= -$200 + 3 × current price

Now

price of payoff is

= -$200 ÷ (1.02)^(3 ÷ 12) + 3 × $60

= -$199.01 + $180

And, finally

The price of the payoff is -$19.01

The same is to be considered

Other Questions
Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hold, which is called non-operating income. Lindley Textiles recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was Lindley's operating income, or EBIT?
"Using your favorite search engine, the resources of your library, and information available on the Uber Web site, identify and evaluate the protections provided to riders who use the service. Summarize your findings in a report of about 200 words."
Examine the values for depreciation in 2014 and net fixed assets in 2013 and 2014. What was Fincorp gross investment in plant and equipment during 2014?
Swinnerton Clothing Company's balance sheet showed total current assets of $2,250, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors?