Parkhill, Smith, and Cooper, a consulting engineering firm, pays a bonus to each engineer at the end of the year based on the company’s profit for that year. If the company’s initial investment was $1.2 million, what rate of return has it made if each engineer’s bonus has been $3000 per year for the past 10 years? Assume the company has six engineers and that the bonus money represents 5% of the company’s profit.

Q: Aira has invested $7,000, part at 4% and the remainder at 8% simple interest. How much is invested…

A: * SOLUTION :-    Given that ,    Aira has invested $7,000 at 4%  Simple interest is 8% the total…

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A:

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A: here we calculate the price of bond as follow-

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Q: If you borrow $500 at an interest rate of 4% per year for two years, how much interest will you have…

A: The concept of simple interest involves the calculation of interest on a fixed principal amount over…

Q: The Aberdeen Fixed Rate Fund pays a dividend of 10% per year simple interest. If you invest $310,000…

A: By simple interest rate A = P x R x T100+ P A = Total AmountP = $310,000R = 10%T = 10 Years

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A: The formula to calculate the present worth is as follows: Here, F is future…

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Q: Nicholas made a deposit of $5,000 in a savings account that earns 2% per year. What is the maximum…

A: here we calculate the given by following method as follow;

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A: Compound interest rate is one of the methods of calculating interest rate. It calculates the…

Q: Receive 120 USD in two years

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Q: the given cash flow diagram of the uniform gradient in a cash flow? Rs. 350,000 Rs. 325,000 Rs.…

A: Gradient is the change in the cash flow from one year to year. If the change is by the same amount…

Q: ABC company issued a bond paying coupon interest of $120 per year for 10 years maturity. The bond…

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Q: A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest. The firm will make no…

A: Compound interest is the addition of interest to the principal sum of a loan or deposit, here we…

Q: It was March 3, 2011 when Jasper borrowed P 1000 from an Arab fellow and agreed that he will only…

A: given that, Jasper borrowed P 1000 on march 3, 2011 at a 20% effective interest rate.

Q: How much should be put in an investment with a 10% effective annual rate today to have $10000 in…

A: The effective annual rate = 10% Future value of an investment = 10000 dollars Time period = 5 years

Q: Problem 4-9 Tom started investing, as soon as he started his first job, at the rate of $400 per…

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A: We have formula for compound interest rate  P = A( 1 + r/n )nt

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A: Payment made at the end of year 1 = 950000 $ Time = 10 years interest rate = 10 % Increase in…

Q: Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount should…

A: According to the question, below information given that : Investment = $50,000 Interest rate = 6% =…

Q: Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per…

A: Option e correct answer P332 Explanation Let's we concider given data  P=100 (principle that…

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A: This can be explained as the estimated monetary amount or value of an investment or flow of cash…

Q: How much should one set aside to pay $5000 per year for maintenance on a small park if interest is…

A: Given,   Amount = $5000  Interest = 4%

Q: Suppose you inherited $6,000 from your father's brother. You would like to take a trip to Australia…

A: GivenPresent value (inherited amount) P=$6000Cost of Australia trip =$13000 so future value…

Q: A person is planning to open a retirement account. He plans is to deposit $1,000 per month for next…

A: A bank lends money and accepts deposits as part of its function as a financial institution. Future…

Q: if interest is compounded at 20% per year, how  long will it take for $50,000 to accumulate to…

A: * SOLUTION :-

Q: An engineer who is about to retire has accumulated $50,000 in a savings account that pays 6% per…

A: Present amount accumulated = 50,000 $ Interest rate = 6 % compounded annually Time = 10 years

Q: How many years would it take to take an investment of $28,000 to double 11% annual interest?

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Q: How much money would you pay in interest if you borrowed $18,000 for one year at simple 20% per…

A: P = 18,000 r = 0.2 t = 1 Therefore, A = P(1 + rt) A = 18000 [1 + (0.2 x 1)] A = 18000 [1 + 0.2] A =…

Q: It is estimated that a copper mine will produce 10,000 tons of ore during the coming year.…

A: Total quantity in a year = 10000 tons Increase in production each year after 6th year = 5% Profit…

Q: 4. How many years would it take for an investment of $280,000 to cumulate to at least $425,000 at…

A: To find the solution to above problem we use following formula - FW = PW(1+ i)n FW = future worth…