in 15 years, we want to take a cruise to london. we estimate the cost will be $45,000. how much do we need to invest today if we earn: 4ompounded semi annually

Answers

Answer 1

They need to invest $24,848.15 today to make their cruise to London after 15 years with the 4% compounded semi annually rate.

If you invest today at a 4% compounded semi-annually rate, you must compute the present value of the $45,000 you want to spend in 15 years using the same present value calculation but altering the interest rate and period:

Present value = Future value / (1 + (interest rate / number of compounding periods)) ^ (time x number of compounding periods)

When the future value is $45,000, the interest rate is 4%, the time period is 15 years, and the number of compounding periods each year is two (semi-annually).

Present value = 45,000 / (1 + (0.04 / 2))⁽³⁰⁾

Present value = $24,848.15

So, to have $45,000 in 15 years, you would need to invest $24,848.15 now at a rate of 4% compounded semi-annually.

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Complete Question:

In 15 years, we want to take a cruise to London. We estimate the cost will be $45,000. How much do we need to invest today if we earn:

A. 4%

B. 4% compounded semi annually

Answer 2

They need to invest $24,848.15 today to make their cruise to London after 15 years with the 4% compounded semi annually rate.

If you invest today at a 4% compounded semi-annually rate, you must compute the present value of the $45,000 you want to spend in 15 years using the same present value calculation but altering the interest rate and period:

Present value = Future value / (1 + (interest rate / number of compounding periods)) ^ (time x number of compounding periods)

When the future value is $45,000, the interest rate is 4%, the time period is 15 years, and the number of compounding periods each year is two (semi-annually).

Present value = 45,000 / (1 + (0.04 / 2))⁽³⁰⁾

Present value = $24,848.15

So, to have $45,000 in 15 years, you would need to invest $24,848.15 now at a rate of 4% compounded semi-annually.

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Complete Question:

In 15 years, we want to take a cruise to London. We estimate the cost will be $45,000. How much do we need to invest today if we earn:

A. 4%

B. 4% compounded semi annually


Related Questions

the u.s. experienced _______recessions between the years 1944 and 2018 with an average duration of _______ months

Answers

The U.S. experienced 11 recessions between the years 1944 and 2018 with an average duration of 11 months.

The United States has experienced a number of recessions throughout its history, with varying durations and severity. Between the years 1944 and 2018, there were a total of 11 recessions. The average duration of these recessions was approximately 11 months, with some being much shorter and others lasting several years.

Recessions are generally defined as periods of significant economic decline, typically marked by a decrease in the gross domestic product (GDP) for two consecutive quarters. They can be caused by a variety of factors, including changes in consumer and business spending, fluctuations in interest rates, and shifts in global trade patterns.

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price clancy’s quantity demanded eileen’s quantity demanded (dollars per slice) (slices) (slices) 1 40 80 2 30 60 3 20 40 4 10 20 5 0 10

Answers

Based on the information provided, the table shows the relationship between the price of a slice of pizza and the quantity demanded by two individuals, Price Clancy and Eileen. At a price of $1 per slice, Price Clancy demands 40 slices and Eileen demands 80 slices.

As the price of a slice decreases, the quantity demanded by both individuals increases. This is known as the law of demand, which states that as the price of a good or service decreases, the quantity demanded will increase, all else equal. At a price of $5 per slice, Price Clancy demands 0 slices and Eileen demands 10 slices.

This suggests that at higher prices, the quantity demanded for pizza decreases, as consumers may choose to substitute pizza with other food options or reduce their overall consumption. It is important to note that the table only shows the relationship between price and quantity demanded, and does not take into account other factors that may impact demand, such as consumer preferences, income levels, and availability of substitutes.

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3. Individual and market demand

Suppose that Clancy and Eileen are the only consumers of pizza slices in a particular market. The following table shows their annual demand

schedules:

Price        Clancy's Quantity Demanded      Eileen's Quantity Demanded

(Dollars per slice         (Slices)                               (Slices)

1                                      40                                        80

2                                     30                                       60

3                                     20                                        40

4                                     10                                         20

5                                      0                                           10

On the following graph, plot Clancy's demand for pizza slices using the green points (triangle symbol). Next, plot Eileen's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol).

Which of the following is a capital expenditure?
Select one:
A. Cost to replace spark plug on company lawnmower
B. Cost to purchase garbage cans for the company conference room
C. Cost to have store windows washed
D. Cost to add air conditioning to a company car

Answers

D. Cost to add air conditioning to a company car is a capital expenditure as it is a cost that will provide a long-term benefit to the company and increase the value of the car.

What is capital expenditure?

A capital expenditure is a type of expenditure that is used to acquire, improve, or maintain a long-term asset, such as property, plant, or equipment, which is expected to provide a benefit to the business for more than one accounting period.

Out of the options given, the cost to add air conditioning to a company car would be considered a capital expenditure because it involves a long-term asset (the car) and is expected to provide a benefit to the business for more than one accounting period.

The cost to replace a spark plug on a company lawnmower, the cost to purchase garbage cans for the company conference room, and the cost to have store windows washed are all examples of operating expenditures, which are expenses incurred in the course of normal business operations and are expected to be consumed within a single accounting period.

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Complete question is: Cost to add air conditioning to a company car is a capital expenditure.

In MRP processing the difference between a planned-order release and the planned-order receipt is: O level of safety stock. ( scheduled receipts of open orders. ( a one is a forecast and the other is actual. O timing as per the lead time. o the level of net requirements.

Answers

In MRP processing, the difference between a planned-order release and a planned-order receipt is primarily based on timing as per the lead time. A planned-order release is when an order is created and released to the system to be executed at a specific time in the future.

This is done to ensure that materials are available for production in a timely manner. On the other hand, a planned-order receipt is when the order is actually received and processed by the system. This occurs when the materials are physically received and checked against the order.

Additionally, the level of net requirements and the scheduled receipts of open orders also play a role in determining the difference between a planned-order release and a planned-order receipt. The level of safety stock is taken into account to ensure that there is always enough inventory on hand to cover unexpected changes in demand or supply.

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A company's holding cost is 16% per year. Its annual inventory turns are 10. The company buys an item for $40. Round your answer to 2 decimal places.) What is the average cost (in $s) to hold each unit of this item in inventory?

Answers

The average cost to hold each unit of this item in inventory is $0.64.

To calculate the average cost to hold each unit of this item in inventory, we need to consider the company's holding cost, annual inventory turns, and the item's cost.

In order to calculate the average cost to hold, follow these steps:

1. Determine the holding cost per unit per year:

16% of the item's cost ($40) = 0.16 * $40 = $6.4

2. Determine the number of days in a year for inventory turns:

365 days / 10 turns = 36.5 days per turn

3. Calculate the holding cost per unit for one turn:

($6.4 holding cost per year) * (36.5 days per turn / 365 days) = $6.4 * 0.1 = $0.64

Hence, the average cost to hold each unit of this item in inventory is $0.64.

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