The Nicor family is planning to purchase a new home 7 years from now. If they have $240,000 now, how much will be available at the time of purchase

Answers

Answer 1

Answer:

$530,400

Explanation:

The interest rate on the funds is 12%.

To find the answer, we use the future value of an investment formula:

FV = PV(1 +i)^n

Where FV = Future Value (the value we are looking for)

PV = Present value, in this case $240,000

i  = the interest rate, in this case 12%

n = the number of compounding periods, in this case, 7 years.

Now, we plug the amounts into the formula:

FV = 240,000 (1 + 0.12)^7

FV = 240,000 (2.21)

FV = 530,400

So the value available for buying the new home after 7 years is $530,400


Related Questions

For financial accounting purposes, what is the total amount of product costs incurred to make 20,250 units

Answers

Answer:

$411,075

Explanation:

Calculation for the total amount of product costs incurred to make 20,250 units

First step is to calculate Variable manufacturing cost per unit

Direct materials 7.70

Direct labor Variable 4.70

Variable manufacturing overhead 2.20

Variable manufacturing cost per unit $14.6

Second step is to calculate Total variable manufacturing cost

Variable manufacturing cost per unit$14.6

*Number of units produced 20,250 units

=Total variable manufacturing cost $295,650

($14.6*20,250)

Second step is to calculate Total fixed manufacturing cost

Fixed manufacturing overhead per unit $5.70

xNumber of units used to calculate fixed cost per unit 20,250 units

=Total fixed manufacturing cost $115,425

($5.70*20,250)

Now let calculate Total product cost

Total product cost = $295,650+$115,425

Total product cost=$411,075

Therefore the total amount of product costs incurred to make 20,250 units is $411,075

what is consumer surplus​

Answers

Explanation:

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In mainstream economics, economic surplus, also known as total welfare or Marshallian surplus, refers to two related quantities: Consumer surplus, or consumers' surplus, is the monetary gain obtained .

Answer:

Consumer surplus is defined as the difference between the consumers' willingness to pay for commodity and the actual price paid by them , or the equilibrium price .

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