Using the Geometeric formula:

A person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of ten years how much savings will there be in the savings account?
asked Mar 8, 2011 in Algebra 1 Answers by anonymous

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113 Answers

500*(1.05)^10 = 814.45

this is different from what you specified by the title
answered Mar 8, 2011 by HenryYang Level 3 User (2,140 points)
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Susan Meyer, owner/manager of Meyer's Motor Court in Key West, is considering outsourcing the daily room cleanup for her motel to Duffy's Maid Service. Susan rents an average of 50 rooms for each of 365 nights (365 x50) per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. Susan's annual fixed cost for space, equipment and supplies is $61,000. Which is the preferred process for Susan and why?  Is this answer right

365x50= 18250x$12.50 Please help me Thank you
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The following information relates to three (3) possible capital expenditure projects. Because of capital rationing only one project can be accepted.

 

                   Projects

                                                                  A                    B                      C

Initial cost                               $200,000         $230,000         $180,000

            Expected life                   5 years             5 years             4 years

Scrap value expected                $10,000           $15,000             $8,000

 

Expected cash inflows                                $                     $                       $

End Year         1                          80,000           100,000             55,000

                        2                          70,000             70,000             65,000

                        3                          65,000             50,000             95,000

                        4                          60,000             50,000           100,000

                        5                          55,000             50,000                 -

 

The company estimates its cost of capital is 18% and discount rate factors are:

 

            Year 1             0.8475

            Year 2             0.7182

            Year 3             0.6086

            Year 4             0.5158

            Year 5             0.4371

 

Calculate:

 

  1. The pay back period for each project
  2. The Accounting Rate of Return (ARR) for each project
  3. The Net Present Value (NPV) of each project
  4. Which project should be accepted – give reasons
  5. Explain the factors management would need to consider – in addition to the financial factors before making a final decision on a project.                               
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$500x0.05x10=$750
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answered Sep 18, 2012 by anonymous
P = $500

R = 5%

T = 10 years

I = ?? A = ??

Formula: I = PRT/100 = (500*5*10)/100 I = $250

now, A = P + I = $500 + $250 = $750

the amount in saving account will be $750
answered Sep 18, 2012 by anonymous
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525 (1.05)^11 525(1.710339358) 897.93
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500 * (1.05)^10 = 814.45
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