If $2000 is invested at 2% interest, find the value of the investment at the end of 6 years if the interest is compounded as follows. (Round your answers to the nearest cent.)

Answers

Answer 1

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment= $2,000

Ineterest rate= 2%

Number of years= 6 years

First, we will calculate the future value if the interest is compounded annually, semiannually, and quarterly:

FV= PV*(1+i)^n

Annually:

n= 6

i= 0.02

FV= 2,000*(1.02^6)

FV= $2,252.32

Semiannually:

n=12

i= 0.02/2= 0.01

FV= 2,000*(1.01^12)

FV= $2,253.65

Quarterly:

n= 24

i=0.005

FV= 2,000*(1.005^24)

FV= $2,254.32

Now, if instead of compounding interest, it is simple interest:

FV= (PV*i*n) + PV

FV= (2,000*0.02*6) + 2,000

FV= $2,240


Related Questions

find the range for the observation 5.6,7.1,8.3,3.7,6.8,4.1,8.4,2.9,2.7,4.4,8.2,2.8​

Answers

Answer:

8

Explanation:

The range is the difference between the largest and smallest numbers. The midrange is the average of the largest and smallest number.

9-1=8

If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.

Answers

Answer:

3/4

Explanation:

The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find

We have income increase to be = 100 dollars

Then consumption increase = 75 dollars

MPC = increase in consumption ,75/increase in income 100

= 75/100

= 3/4

Therefore the marginal propensity to consume also called the slope is 3/4

An employee has​ year-to-date earnings of . The​ employee's gross pay for the next pay period is . If the FICAOASDI is ​% and the wage base is ​, how much FICAOASDI tax will be withheld from the​ employee's pay?​ (Answer is rounded to whole​ dollar.)

Answers

Answer:

$192

Explanation:

Calculation for how much FICA-OASDI tax will be withheld from the employee's pay?

FICA-OASDI tax=($117,000-$113,900)*6.2%

FICA-OASDI tax=$3,100*6.2%

FICA-OASDI tax=$192

Therefore how much FICA-OASDI tax will be withheld from the employee's pay is $192

he Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes.What are the firm's income tax liability and its after-tax income

Answers

Answer:

(a) The firm's Income tax liability is $59,771.25.

(b) The firm's after-tax income is $233,478.75.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows

The Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $69,000, (2) dividends received of $17,250, (3) dividends paid of $20,700, and (4) income taxes. Its federal tax rate was 21% (ignore any possible state corporate taxes). Recall 50% of dividends received are tax exempt. What are the firm's income tax liability and its after-tax income?

The explanation to the anwer is now given as follows:

Adjusted taxable income = Income after operation - Interest charges + Taxable dividend received ................. (1)

Where;

Income after operation = $345,0000

Interest charges = $69,000

Taxable dividend received = 50% * $17,250 = $8,625

Substituting the values into equation (1), we have:

Adjusted taxable income = $345,000 - $69,000 + $8,625 = $284,625

(a) Income tax liability = Adjusted taxable income *  Tax rate = $284,625 * 21% = $59,771.25

(b) After-tax income = (Adjusted taxable income - Income tax liability) + (50% of dividend received) = ($284,625 - $59,771.25) +  (50% * $17,250) = $224,853.75 + $8,625 = $233,478.75

The goal is a fast delivery process, ideally requiring little manual effort. What is one capability used to achieve this?

a. Soft launches
b. Nonfunctional requirements
c. Quiet releases
d. Feature toggles

Answers

Answer: D. Feature toggles

Explanation:

Feature toggles allows one to be able to either turn a code on or off without needing a deploy.

Feature toggles being about a fast delivery process, ideally requiring little manual effort.

Feature toggles are usually used by engineering teams for continuous deployment and canary releases.

Term that express the capability which involves a goal of having a fast delivery process, with a little manual effort required is D: Feature toggles.

When one is trying to acheive a goal of having a fast delivery process, Feature toggles would be the best option to go for Feature toggle can be regarded as a mechanism that helps the code to be turned “on” or “off”.

Thus can be done remotely, and there is no need for deploy, it is been utilized by  product engineering and software development.

Therefore, option D is correct

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Brad has evaluated and selected the channel alternatives for his company.
There will be three channel levels, including two retailers and one wholesaler.
In addition, he has decided there will be one intermediary involved because of
that intermediary's stellar reputation. What is the next question Brad needs to
decide about the channel?
O Who will be in charge of the selected channels?
O What intermediary will offer discounts?
When will the channel implementation take place?

Answers

Answer:

The next question Brad needs to decide about the channel is:

When will the channel implementation take place?

Explanation:

This is the most logical question to ask after determining "the what" of channels to choose and "the how" to go about implementing the chosen channel.  With this determination, the plan is officially set for take-off launching.  This also makes the marketing plan implementable, as it now has a time-frame for implementation.

1. Tyler is organizing an extensive scientific research presentation on global warming for his professor. Which organizing triad would be the most appropriate?2. What is the best way to anticipate your audience's reaction when designing your message?

Answers

Explanation:

In this question we are going to have the triad to be the

A. the World Wildlife Fund,

B. The United Nations Environment Programme,

And also

C. World Meteorological Organization as the most appropriate.

2. The reaction of the audience to the message is going to be imagined. It would be deeply thought about and the reaction is going to be anticipated in the most natural way that they are expected to react. Messages can be designed in this way.

A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and is selling today at an $84.52 discount from par value. The yield to maturity on this bond is _________. A. 6% B. 7.23% C. 8.12% D. 9.45%

Answers

It’s b I think but not for sure

The federal government creates the federal budget each year in order to
Please help and don't put a random answer. Multiple Choices is in the screen shot.

Answers

Answer:

c. decide how much money the government will spend

Explanation:

A budget is a plan on how a person, company, or government intends to spend its projected income.  A federal budget shows the money that a government's departments and agencies intend to spend in the financial year under consideration. A federal budget is a plan of expenditure vis a vis projected income.

If the planned expenditure exceeds forecasted income, the federal budget is said to have a deficit. Should the expenditure be less than the projected income, the budget will have a surplus.

Answer:c

Explanation:

Nazim also recently bought bonds with a clause stating that interest will be paid only when the company has enough earnings to pay for it. Nazim has invested i

Answers

Answer:

Income Bond

Explanation:

Bond is simply any Corporations written pledge to repay a written and specific amount with interest.

Income bond also known as adjustment bond and an a type of debt security.

It is that which the face value of the bond only is pledged to be paid to the investor, with any other payment usually coupon payments paid only if the issuing party involved has enough earnings to pay for it. It is often used when a company is reorganizing and coming out of a bankruptcy.

Suppose that a country's inflation rate increases sharply. Which of the following statements are true?

a. Wealth in savings accounts is not subject to a change in the inflation tax because the real interest rate will increase with the rise in inflation.
b. The inflation tax on holders of money increases.
c. Holders of savings accounts are hurt by the increase in the inflation rate because they are taxed on their nominal interest income.

Answers

I think the answer is A

Auerbach Inc. issued 4% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $300 million. The bonds pay interest each March 31 and September 20, beginning March 31, 2019. The effective interest rate established by the market was 6%.

Required:
How much cash interest does Auerbach pay on March 31, 2019?

Answers

Answer:

$6.0 million

Explanation:

Calculation for How much cash interest does Auerbach pay on March 31 2019

Cash interest=$300 million × 4% × 6/12.

Cash interest=$6.0 million

(Note that 0ctober 1 2018 to March 31 2019 will give us 6 months)

Therefore the amount of cash interest that Auerbach pay on March 31 2019 will be $6.0 million

At what point should consumers stop researching a product?

when the research costs more than the potential savings
when they want to make an immediate purchase
when the government does the research for them
when they know they have waited long enough to buy

Answers

Answer:

A. When the research costs more than the potential savings

This is correct on Edg :)

A consumer should stop researching a  product when the research costs more than the potential savings.

What is a consumer?

A consumer is the final user of a purchased product or service. Consumers can either be an individual or group of people who purchase or  use goods and services solely for personal use, and not for the manufacturing or resale.

Consumers are the people or organizations that purchase products or services. They are humans or other economic entities that use a good or service. Furthermore they do not sell on that that they bought.

They are the end-users in the sales distribution chain. A company that buys a printer for company use. The customer is the company who purchased the printer, and the consumers are the employees using the printer . The company doesn't intend to resell the printer.

Learn more about Consumers here:

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Fowler, Inc., just paid a dividend of $2.55 per share on its stock. The dividends are expected to grow at a constant rate of 3.9 percent per year, indefinitely. If investors require a return of 10.4 percent on this stock, what is the current price

Answers

Answer:

The current price of the stock is $40.76

Explanation:

The computation of the current price is shown below:

Current price is

= Current year dividend ÷ (Required rate of return - growth rate)

= ($2.55 × (1 + 0.039) ÷ (10.4% - 3.9%)

= $2.6495 ÷ (0.104 - 0.039)

= $2.6495 ÷ 0.065

= $40.76

Hence, the current price of the stock is $40.76

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

And, the same is to be considered

Over time, consumers have less of a need for a broad product offering. How does this shift in preferences alter the desirability of make-to-stock production relative to make-to-order production?1. It increases it, i.e., make-to-stock becomes more desirable.2. It has no impact.3. It decreases it. i.e., make-to-stock becomes less desirable.4. We cannot determine from the given information.

Answers

Answer:

Over time, consumers have less of a need for a broad product offering. How does this shift in preferences alter the desirability of make-to-stock production relative to make-to-order production?

3. It decreases it. i.e., make-to-stock becomes less desirable.

Explanation:

Given the above scenario, there will be no need for a company to produce goods that will be stored.  Instead, it will wait to receive orders before it commences production of any goods.  This is caused by the shift in preferences "consumers have less of a need for a broad product offering." This means that make-to-order will be highly prioritized while reducing or eliminating make-to-stock production facilities.

Cynthia is interested in investing in Clothing Unlimited Inc. Which attribute from the stock quote can Cynthia use to determine how the stock has performed over the past year?
A. current price
B. net change
C. open price
D. a positive or negative result for the one-year change
E. previous close price

Answers

Answer:

D. a positive or negative result for the one-year change

Explanation:

The most relevant parameter of a stock's performance is the stock's returns. If a stock has been consistent in producing good returns,  the past financial year's results play a big role in determining whether to invest in its stock or not.

If Cynthia is interested in investing in Clothing Unlimited stock, she needs to look at its past performances and compare it with lay year's results. If the stock has been yielding consistent positive results, there is a big possibility that the trend will continue into the future.

Answer:

Cynthia is interested in investing in Clothing Unlimited Inc. Which attribute from the stock quote can Cynthia use to determine how the stock has performed over the past year?

A.

current price

B.

net change

C.

open price

D.

positive or negative result for the one-year change

E.

previous close price

Explanation:

The market price of a security is $32. Its expected rate of return is 17%. The risk-free rate is 6%, and the market risk premium is 9.0%. What will be the market price of the security if its correlation coefficient with the market portfolio doubles (and all other variables remain unchanged)? Assume that the stock is expected to pay a constant dividend in perpetuity.

Answers

Answer:

im sorry

Explanation:

Becky is a cash basis taxpayer with the following transactions during her calendar tax year: Cash basis revenue $54,000 Cash basis expenses, except rent 25,000 Rent expense (paid on December 1) for use of a building for 24 months 24,000 What is the amount of Becky's taxable income from her business for this tax year?

Answers

Answer:

$28,000

Explanation:

Calculation for the amount of Becky's taxable income from her business for this tax year

Taxable income=$54,000 - $25,000 - ($24,000 / 24 months × 1 month)

Taxable income=$54,000 - $25,000 - $1,000

Taxable income=$28,000

Therefore the amount of Becky's taxable income from her business for this tax year will be $28,000

Equipment was purchased for $50,000. At that time, the equipment was expected to be used eight years and have a residual value of $10,000. The company uses straight-line depreciation. At the beginning of the third year, the company changed its estimated useful life to a total of six years (four years remaining) and the residual value to $8,000. What is depreciation expense in the third year?

a. $8,000.

b. $5,000.

c. $7,000.

d. $5,500.

Answers

Answer:

Annual depreciation= $8,000

Explanation:

First, we need to calculate the accumulated depreciation for the first two years:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (50,000 - 10,000) / 8

Annual depreciation= $5,000

Accumulated depreciation= 5,000*2= $10,000

Now, we can calculate the new depreciation expense:

Annual depreciation= [(50,000 - 10,000) - 8,000]/4

Annual depreciation= $8,000

Explain the distinction between current and long-term assets pertaining to IBM computers and the investments in equity securities.

Answers

Answer: Current assets generate revenues instantly while long term assets builds over time

Explanation:

Current assets could be defined as those assets that are expected to generate cash within a short time. They are used to fund the daily or routine operations of the business, examples are cash, inventory, marketable securities, etc

Long term assets are assets that provide economic benefit to the organization for a long period of time, they are not expected to generate revenue instantly like the current assests, they might begin generating revenue after a year or two, examples are plants, equipments, trademark.

In comparison to IBM computers and their investment in equity, it's discovered that some of their investment are over time while some generate income for them immediately

Marigold Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $157,500, $404,800, and $93,600, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,100, machine hours 25,300, and number of inspections 1,800.

Required:
Compute the overhead rate for each activity.

Answers

Answer and Explanation:

The computation of the overhead rate for each type of activity is as follows:

Overhead rate is

= Activity activity ÷ Level of activity driver

For machine setup, the Overhead rate is

= $157,500 ÷ 2,100 setup

= $75 per set-up

For machining, the overhead rate is

= $404,800 ÷ 25,300

= $16 per machine hour

For inspection, the overhead rate is

= $93,600 ÷ 1,800

= $52 per inspection

When a company collects sales tax from a customer, the event results in a(n) ________ in Cash and a(n) ________ in Sales Tax Payable.

a. increase; decrease
b. increase; increase
c. decrease; decrease
d. decrease; increase

Answers

Answer:

The correct option is option (b) increase; increase

Explanation:

Since the company collect the sales tax from a customer so here the cash is received that means cash is increased while on the other hand the sales tax payable is a liability so it is also increased. Moreover, the cash has the debit balance while on the other hand the liabilities has the credit balance

hence, the option (b) is correct

On January 1, 2022 Crystal Company granted restricted stock units (RSUs) representing 32.5 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within five years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $7.0 per share on the grant date.

Required:
a. Determine the total compensation cost pertaining to the RSUs.
b. Prepare the appropriate journal entry to record the award of RSL's on January 1, 2021.
c. Prepare the appropriate journal entry to record compensation expense on December 31, 2021.
d. Prepare the appropriate journal entry to record compensation expense on December 31, 2022.
e. Prepare the appropriate journal entry to record compensation expense on December 31, 2023.
f. Prepare the appropriate journal entry to record the lifting of restrictions on the RSL's and issuing shares at December 31, 2023.

Answers

Answer:

a. Total compensation = $32,500,000 * $7.0 = $227,500,000

b. No Journal entry to award of award of RSL's on January 1, 2021.

c. Date         Account titles                             Debit              Credit

21-12-2021   Compensation Expenses    $45,500,000

                    ($227,500,000/5)

                            Paid in capital - Restricted stock         $45,500,000

d. Date         Account titles                             Debit              Credit

21-12-2022   Compensation Expenses    $45,500,000

                    ($227,500,000/5)

                            Paid in capital - Restricted stock         $45,500,000

e. Date         Account titles                             Debit              Credit

21-12-2023   Compensation Expenses    $45,500,000

                    ($227,500,000/5)

                            Paid in capital  - Restricted stock         $45,500,000

f. Date         Account titles                                      Debit              Credit

21-12-2023  Paid in capital - Restricted stock $227,500,000

                        Common stock ($32,500,000 * 1)                  $32,500,000

                         Paid in capital - Excess of par balance         $195,000,000

Ashland Corporation sells 150 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $30 a share. Ashland sold the shares for $38 a share. The entry to record the sale is:___________

Answers

Answer:

Dr Cash $5,700

Cr Gain on Sale of Stock Investments $1,200

Cr Stock Investments $4,500

Explanation:

Based on the information given we were told that the Corporation sold 150 shares of common stock that was being held as an investment which means that in a situation where the shares were acquired at a cost of $30 a share in which the Corporation sold the shares for cost of $38 a share. The Journal entry to record the sale will be:

Dr Cash $5,700

(150 shares *$38)

Cr Gain on Sale of Stock Investments $1,200

($5,700-$4,500)

Cr Stock Investments $4,500

(150shares *$30)

Tinsel Co.'s balances in allowance for uncollectible accounts were $70,000 at the beginning of the current year and $55,000 at year end. During the year, receivables of $35,000 were written off as uncollectible. What amount should Tinsel report as uncollectible accounts expense at year end

Answers

Answer:

$20,000

Explanation:

to determine the amount that Tinsel should report as bad debt expense (or uncollectible accounts expense), we must start with the beginning balance of allowance for doubtful accounts, and then we must subtract the account's ending balance and any bad debts write offs recorded during the year:

beginning account balance   $70,000

- ending account balance     ($50,000)

- write offs                              ($35,000)

total                                        ($20,000)

A policy is a specific action to be taken or not to be taken with respect to situation.
Answer
True
False

Answers

Answer:

false

Explanation:

.... I just know .......

The answer should be true I think

Profit is defined as total revenue:__________ a. divided by total cost. b. times total cost. c. minus total cost. d. plus total cost.

Answers

Answer:

C. Minus total cost

Explanation:

Profit = total revenue - total cost (expenses)

What is the meaning of this question

Answers

Answer:

You either want someone to get points or there is no meaning to the quesiton

Explanation:

ummm... common sense :)

Consolidation Entry TL removes the gain on sale from an intra-entity land sale because the land remains under the control of the consolidated entity.a. True b. False

Answers

Answer:

True

Explanation:

In consolidation the intra-entity transaction takes place and the gain on these transactions are eliminated as the sale and purchases are taken place in the same entity as a group. At the time of consolidation of group account the gain arising from these types of transactions are eliminated because the asset is held by the same entity as a group but in the individual account of each company of the group the gain on these transactions are recorded and reported in the accounts.

Rappaport Industries has 6,250 perpetual bonds outstanding with a face value of $1,400 each. The bonds have a coupon rate of 6.6 percent and a yield to maturity of 6.9 percent. The tax rate is 40 percent. What is the present value of the interest tax shield?

Answers

Answer:

3,500,000

Explanation

The present value of the interest tax shield can be calculated by first calculating the coupon payment and tax shield on that coupon payment. After calculating the tax shield we can easily calculate the present value of the tax shield

DATA

Number of bonds = 6250

Coupon rate = 6.6%

Face value = $1,400

Tax rate = 40%

Solution

Coupon Payment = No of Bonds x Face value x Coupon Rate

Coupon Payment = (6250 x 1400 x 6.6%)    

Coupon Payment = $577,500    

Tax Shield = $577,500 x 40%    

Tax Shield = $231,000

Present value = Tax shield/Coupon Rate  

Present value = (231,000 /0.066)    

Present value = $3,500,000

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