Question

needing help with these

What would be more valuable, receiving $1,895 today or receivina $3.450 in six years if interest rates are 8 percent? A) Need more information to make a determination B) They are worth the same amount C) receiving $1,895 today D) receiving $3,450 in six years 30) If an average home in your town currently costs $300,000, and house prices are expected to grow at an average rate of 5 percent per year, what will an average house cost in 10 years (round your answer to 0 decimal places - i.e. $123,4562 31) You want to retire in 40 years and you have $40,000 saved in your retirement account. You believe you will need $1,500,000 upon retirement. What rate will you need to earn on the account to achieve this goal answer must be a percentage rounded to 2 decimal places - i.e. 12.34%).? 32) Will's Wheels, Inc. reported a debt-to-equity ratio of 0.65 times at the end of 2018. If the firm's total debt at year-end was $5 million, how much equity does Will's Wheels have? 33) Rachets R Us Corp. reported sales for 2013 of $200,000. Rachets R Us listed $25,000 of inventory on its balance sheet. Using a 365-day year, how many days did Rachets R Us's inventory stay on the premises? How many times per year did Rachets R Us's inventory turnover? A) 0.125 days, 5 times, respectively B) 45.625 days, 5 times respectively C) 0.125 days, 8 times, respectively D) 45.625 days, 8 times, respectively -) You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $800,000, inventory = $1,000,000, accrued wages and taxes =$250,000, accounts payable = $400,000, and short-term notes pavable =$300.000. What are Blue Jays' current ratio, quick ratio, and cash ratio, respectively? A) 1.05263, 1.05263, 0.21053 B) 3.07692, 1.05263, 0.30769 C) 2.10526, 1.05263, 0.21053 D) 3.07692, 1.53846, 0.30769

Answer 1

Answer to Question 29.

Option 1:
Receive Today = $1,895

Option 2:
Receive after 6 years (Future Value) = $3,450
Rate (r ) = 8%
Time (n ) = 6 years
Value Today (Present Value) = ??

Future Value = Present Value * (1 + r)^ n
$3,450 = Present Value * (1 + 0.08)^ 6
$3,450 = Present Value * 1.08^ 6
$3,450 = Present Value * 1.58687
Present Value = $2,174

Therefore, it will be more value to receive $3,450 in six years.

Option D is Correct.

Answer to Question 30.

Current Value (Present Value) = $300,000
Rate (r ) = 5%
Time (n ) = 10 years
Value in 10 years (Future Value) = ??

Future Value = Present Value * (1 + r)^ n
Future Value = $300,000 * (1 + 0.05)^ 10
Future Value = $300,000 * 1.05^ 10
Future Value = $300,000 * 1.6289
Future Value = $488,670

Therefore, the average cost of house in 10 years will be $488,670.