Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. calculate the following: a )suppose you wish to ra

Calculate the following: a )Suppose you wish to raise some money for your favorite local...

60.1K

Verified Solution

Question

Accounting

Calculate the following:

a )Suppose you wish to raise some money for your favorite local charity. This charity needs $50,000 a year to run their operation and you want to make sure that they are ensured an annual payment of this amount from now on for every in the foreseeable future. Given an interest rate of 5%, how much would you have to fund this perpetuity to guarantee this charity a payment of $50,000 per year?

b)You decide to put $1,000 in a new bank account and dont plan to withdraw the money for 10 years. If your bank does continuous compounding and the interest rate is 1%, what will be the future value of this bank account in 10 years?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In the following problems provide a complete explanation of why it is true(1) Letnbe an integer....

Basic Math
Q

A compound microscope has a magnification of 30 The focal length of eyepiece is 5...

Physics
Q

Density of viscous fluid only For an aerofoil which of the following statement s is...

Physics
Q

Ken is buying a new set of DJ equipment Ken can afford one mixer and...

Geometry
Q

Example 2 Listed below are the number of years it took for a random sample...

Statistics
Q

A report set a goal of 0 541 for the proportion of babies still being...

Statistics
Q

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions...

Accounting
Q

URGENT PLEASE On February 1,2020, the board...

Accounting
Q

Recording a sales-type lease with a selling profit is similar to recording: Multiple...

Accounting
Q

Cullumber Excavating Inc, is purchasing a bulldozer. The equipment has a price of $100,000. The...

Accounting
Q

16.The predetermined overhead rate for Zane Company is $5,comprised of a variable overhead rate of...

Accounting
Q

Suresh Co. expects its five departments to yield the following income for next year Dept....

Accounting