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please, show your calculations for these 5 multiple choice questions. Detrick Products is planning to upgrade an aging manufacturing operation 5 years from now at
please, show your calculations for these 5 multiple choice questions.
Detrick Products is planning to upgrade an aging manufacturing operation 5 years from now at a cost of $100,000. If the company plans to deposit money into an account each year for 4 years beginning 2 years from now (first de-posit is in year 2) to pay for the expansion, the amount of the deposit at 10% per year interest is closest to: (a) $30.21 (b) $21.547 (c) $16.380 (d) $14.392 At a return rate of 20% per year. the amount of money you must deposit for five consecutive years starting 3 years from now for the account to have $50,000 fifteen years from now is closest to: (a) $1565 (b) $1759 (c) $1893 (d) $2093 The maker of a motion-sensing towel dispenser is considering adding new products to enhance offerings in the area of touchless technology. If the company does not expand its product line now, it will definitely do so in 2 years. Assume the interest rate is 10% per year. The amount the company can afford to spend now if the cost 2 years from now is estimated to be $100,000 is closest to: (a) $75.130 (b) $82.640 4 (c) $91,000 (d) $93,280 An interest rate of 2% per month is the same as: (a) 24% per year, compounded monthly (b) a nominal 24% per year, compounded monthly (c) an effective 24% per year, compounded monthly (d) Both (a) and (b) If you make quarterly deposits for 3 years (beginning one quarter from now) into an account that compounds interest at 1% per month, the value of n in the F/A factor (for determining F at the end of the 3-year period) is: (a) 3 (b) 4 (c) 12 (d) 16Step by Step Solution
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