can someone please explain the steps for B.c? SOLUTIONS QUIZ 5 BUSS 201 FALL 201

Question

can someone please explain the steps for B.c?

SOLUTIONS QUIZ 5 BUSS 201 FALL 2017-10133 PART A: SHORT ANSWERS NO PARTIAL CREDIT (30%, 6 points each) 1. The excess of current assets over current liabilities is called:-WORKING CAPITAL- 2. The Plaza Company has working capital of AED 540,000 and a current ratio of 3 to 1. The amount of current assets is: AED 810,000 3CL-CL = 540,000: CL = 270,000; CA = 810,000 3. If you invested AED 10,00°at6%on your 20 birthday how much would you have on your 40th birthday? AED 32, 10,000 × 3.20714 = AED 32,071.40 How much must I invest today in order to have AED 25,000 in 5 years assuming 12% interest compounded annually? AED_14,186 4. 25,000 × .56743 = AED 14,185.75 If you receive AED 20,000 as a gift and invest it at 12% compounded quarterly, how much will you have at the end of three years? 5. AED-28515 . 20,000 x 1.42576-AED 28,515.20 PART B: COMPREHENSIVE QUESTIONS: SHOW WORK FOR PARTIAL CREDIT (70%) 6. Use the tables to determine the answers to the following: (15 Points, 5 ea) How much must be invested now for 5 periods at 6% to amount to AED 15,000? AED 11,209 a. 15,000 × .74726 = AED 1 1,208.90 How much is AED 3,000 invested now at 8% in 8 periods worth? AED-5553 3,000 × 1.85093 = AED 5,552.79 b. . How much is AED 25,000 compounded quarterly at 12% for 4 years? AED 40,118 25,000 x 1 .60471 = AED 40,117.75 C. Sh

Explanation / Answer

Hey there!

Please follow the below steps

b. FV = PV ( 1 + i )n

= 3,000 * ( 1 + 0.08 )8

= 3000 * (1.08)8

=3000 * 1.85093 = 5,552.79

c.

=25,000 ( 1 + 0.12/4 )4 * 4

= 25000 * 1.60471 =40,117.75

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