A smart business sets aside 1 million dollars, and puts the cash into a contingency fund....
A smart business sets aside 1 million dollars, and puts the cash into a contingency fund. The company never touches the money for 2 years. How much money will they have when 2 years is up? The account grows at 10% a year.
Homework Answers
Ans: $1,210,000
Explanation:
F = P ( 1 + i )n
= $1000000 ( 1 + .10 )2
= $1000000 ( 1.10)2
= $1000000 * 1.21
= $1,210,000
Add Answer to:
A smart business sets aside 1 million dollars, and puts the cash into a contingency fund....
6. If a company sets aside $1,000,000 now into a contingency fund, how much will the company have in 2 years, if it doe...
6. If a company sets aside $1,000,000 now into a contingency fund, how much will the company have in 2 years, if it does not use any of the money and the account grows at a rate of 10% per year Compounded ?
Construct a cash flow diagram for the following cash flows: $25,000 outflow at time 0, $9000...
Construct a cash flow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5. 4. If a company sets aside $1,000,000 now into a contingency fund, how much will the company have in 2 years, if it does not use any of the money and the account grows at a rate of 10% per...
5. A company is planning to set aside money to repay $100 million in bonds that...
5. A company is planning to set aside money to repay $100 million in bonds that will be coming due in 10 years. If the appropriate discount rate is 9%, a. how much money would the company need to set aside at the end of each year for the next 10 years to be able to repay the bonds when they come due? b. how would your answer change if the money were set aside at the beginning of each...
Problem 01.034 Simple and Compound Interest Durco Automotive needs a $1 million balance in its contingency...
Problem 01.034 Simple and Compound Interest Durco Automotive needs a $1 million balance in its contingency fund 3 years from now. The chief financial officer (CFO) wants to know how much to deposit now into Durco’s high-yield investment account. Problem 01.034.b Simple and Compound Interest Determine the amount if it grows at a rate of 11% per year using compound interest. The amount if it grows at a rate of 11% per year using compound interest is $
8. A computer company wants to have $2.1 million available 5 years from now to upgrade...
8. A computer company wants to have $2.1 million available 5 years from now to upgrade the system. The company expects to set aside uniformly increasing amounts of money each year to meet its goal. If the amount set aside at the end of year 1 is $50,000, how much will the constant increase have to be each year? Assume the investment account grows at a rate of 18% per year. Draw cash flow diagram.
3) If a company wants to have $1,200,000 in a contingency fund 30 years from now,...
3) If a company wants to have $1,200,000 in a contingency fund 30 years from now, the amount the company must deposit each year in years 1-10 at an interest rate of 6% is a. d) 20892 b. a) 22750 C. C) 56712 d. b) 28386 QUESTION 4 4) A deposit of $5,000 at an interest rate of 6% per year compounded quarterly will be equivalent to how much money 40 years from today (4 quarters per year)? a. b)...
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she...
1. Your grandmother has invested $4000 in a mutual fund each year on your birthday (she made her first payment when you turned 1 year old). The mutual fund has grown at an annual interest rate of 6.8%. How much is your account worth on the day of your 21st birthday immediately after your grandmother’s deposit? answer: 2. You set up a college fund in which you pay $4000 each year at the beginning of the year. How much money...
1. A major drug company anticipates that in future years it could be involved in litigation...
1. A major drug company anticipates that in future years it could be involved in litigation regarding perceived side effects of one of its antidepressant drugs. In order to prepare a war chest, the company wants to have $ 200 million available in 8 years from now. The company expects to set aside $11 million the fourth year and uniformly increasing amounts in each of the next 5 years. If the company can earn 12% per year on the money...
Your company wants to set aside a fixed amount every year to a sinking fund to...
Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $246,000 at the end of four years from now The sinking fund is expected to earn 6% interest. How much m ust your company deposit each year to meet this goal? Click the icon to view the interest factors for discrete compounding when 1-6% per year. Your company nust deposit each year Sto meet this goal. (Round...
C. Cash management, type 1. a. total expected cash receipts for the year ($2 million) b....
C. Cash management, type 1. a. total expected cash receipts for the year ($2 million) b. the cost to transfer funds from the cash account to an interest-bearing account (520) c. the interest rate on the interest-bearing account (5.0%) 1. What must the cash balance reach before the company transfers funds to the interest bearing account if the company want to reduce the total costs associated with holding cash (that is, the total annual cost of transferring funds plus the...
Construct a cash flow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5. 4. If a company sets aside $1,000,000 now into a contingency fund, how much will the company have in 2 years, if it does not use any of the money and the account grows at a rate of 10% per...
5. A company is planning to set aside money to repay $100 million in bonds that will be coming due in 10 years. If the appropriate discount rate is 9%, a. how much money would the company need to set aside at the end of each year for the next 10 years to be able to repay the bonds when they come due? b. how would your answer change if the money were set aside at the beginning of each...
3) If a company wants to have $1,200,000 in a contingency fund 30 years from now, the amount the company must deposit each year in years 1-10 at an interest rate of 6% is a. d) 20892 b. a) 22750 C. C) 56712 d. b) 28386 QUESTION 4 4) A deposit of $5,000 at an interest rate of 6% per year compounded quarterly will be equivalent to how much money 40 years from today (4 quarters per year)? a. b)...
1. A major drug company anticipates that in future years it could be involved in litigation regarding perceived side effects of one of its antidepressant drugs. In order to prepare a war chest, the company wants to have $ 200 million available in 8 years from now. The company expects to set aside $11 million the fourth year and uniformly increasing amounts in each of the next 5 years. If the company can earn 12% per year on the money...
Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $246,000 at the end of four years from now The sinking fund is expected to earn 6% interest. How much m ust your company deposit each year to meet this goal? Click the icon to view the interest factors for discrete compounding when 1-6% per year. Your company nust deposit each year Sto meet this goal. (Round...
C. Cash management, type 1. a. total expected cash receipts for the year ($2 million) b. the cost to transfer funds from the cash account to an interest-bearing account (520) c. the interest rate on the interest-bearing account (5.0%) 1. What must the cash balance reach before the company transfers funds to the interest bearing account if the company want to reduce the total costs associated with holding cash (that is, the total annual cost of transferring funds plus the...
Most questions answered within 3 hours.
-
A graduate student is conducting research in psychology and
needs to obtain the IQ scores of...
asked 30 minutes ago -
R2.84: There are 2 defective products in a production lot of 10.
An inspector randomly selected...
asked 1 hour ago -
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 2 hours ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 2 hours ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 3 hours ago -
1. In eukaryotic cells the genomes of
&
asked 3 hours ago -
The standard enthalpy of propanol (C3H7OH) is -303.0 kJ/mol.
Compute both of the
gross and net...
asked 3 hours ago -
Why PWM using H-bridge for control motor speed is more power
effiecient than the linear amplifier...
asked 3 hours ago -
In 1999, Carly Fiorina famously said,"I hope that we are at a
point that everyone is...
asked 3 hours ago -
Individuals in a species of moth vary in wing color from white to
black, but all...
asked 3 hours ago -
The following standards for variable manufacturing overhead have
been established for a company that makes only...
asked 4 hours ago -
The United States government wanted to determine what proportion
of Americans approve of the current president,...
asked 4 hours ago