Zaros inc has deployed six new erp modules. they are all hosted on a server on the company's premises. on which servers will the erp modules be hosted?

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Answer 1

Zaros Inc has deployed six new ERP modules. they are all hosted on a server on the company's premises. ERP modules be hosted in ERP database server hardware.

Company aid making plans (ERP) refers day-to-day a form of software that agencies use day-to-day manipulate commercial enterprise activities which include accounting, procurement, mission management, risk management and compliance, and supply chain operations.

What's ERP and the way does it work?

ERP stands for “organization resource planning”, the consolidated method of accumulating and organizing business statistics through an included software suite. ERP software contains a collection of programs which automates enterprise features like manufacturing, income quoting, accounting, and more.

What does ERP mean in business?

A entire ERP suite additionally consists of organization overall performance management, software program that allows plan, finances, are expecting, and file on an organization's financial consequences. ERP systems tie together a large number of business processes and allow the glide of statistics between them.

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Related Questions

The economic crisis in 2008 had a huge impact on eaton’s business to business customers. In response to the crisis, eatons customers tried to cut cost and lower their production. This in turn affected eatons sales negatively, which is an example for _______.

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The economic crisis in 2008 had a huge impact on eaton’s business to business customers. In response to the crisis, Eaton's customers tried to cut costs and lower their production. This in turn affected eatons sales negatively, which is an example for solutions selling.

From peak to trough, US gross domestic product fell by 4.3 percent, making this the deepest economic crisis recession since warfare II. It absolutely was also the longest, lasting eighteen months.

The per centum quite doubled, from 5 percent to 10 percent. The collapse of the housing market — fueled by low interest rates, easy credit, insufficient regulation, and toxic economic crisis subprime mortgages — led to the slump. The good Recession's legacy includes new financial regulations and an activist Fed.

Of 198 Countries, compared to the proportion change in GDP between 2007 and 2009, the foremost impacted countries are predominantly Eastern European and trade-dependent economic crisis advanced economies. One of the foremost visible aspects of the recession, job losses and unemployment are known to be related to increased stress, poorer health outcomes.

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How is an ethical situation different from an everyday problem?

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An ethical situation isn't the same as an everyday hassle: ethical problems occur whilst a given decision, state of affairs, or interest creates a battle with a society's ethical principles. each individual and corporation can be worried in those conflicts in view that any in their sports is probably positioned into question from a moral point of view.

Ethical situations, additionally known as ethical paradoxes or moral dilemmas, are situations wherein an agent stands under two conflicting ethical necessities, none of which overrides the other. An intently related definition characterizes moral dilemmas as situations wherein every available desire is incorrect.

Some examples of ethical situations and ethical predicaments include: Taking credit scores for others' work. offering a patron a worse product for your very own profit. making use of internal expertise for your very own profit.

Ethical situations are conditions in which there may be a hard preference to be made among or greater options, neither of which resolves the situation in a manner that is steady with regularly occurring moral guidelines.

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examples of a substantive goal are winning, beating the other party, or getting a settlement at any cost.

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Winning, defeating the other party, or reaching a settlement at any cost are a few examples of substantive goals.

Our capacity to obtain material resources or something measurable and obvious that we seek is what we call "substantive goals." For instance, if I were living with numerous roommates, I might seriously want to keep our place clean.

The goals that one needs to have met or traded as a result of talks are known as substantive interests. Important interests include the need for money, property, performances, time commitments, etc.

A substantive issue is one that could jeopardize a party's substantive rights, interests, or privileges, as opposed to a minor or merely procedural issue that the office of tax appeals handles.

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The british government has a consol bond outstanding paying per year forever. assume the current interest rate is per year. a. what is the value of the bond immediately after a payment is made?

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As per the given data, the value of bond that has been found before and after payments made is as follow:

a) Value of Bond = 100/4%  2.500.00

b) Value of Bond = 100+100/4%  2,500.00

Hence, there is a huge difference in the value of bonds.

What is a bond?

In order to get a particular exchange, it is necessary to make some kind of investment. It can be done either by the individual or by a form normally called a bond.

A bond is that which has been issued by a company so that investors can borrow money. In exchange for this, they can get the security of their investments.

They can loan the money to a company or a government. This landed money is not for the whole lifetime; it is for a particular period of time, and in exchange for this, they receive a particular or fixed regular interest payment.

When the British government issued a console bond that has an outstanding payment of $100 and also assumes that the current interest rate is 4%, the value of the bond which is after making the payment and before making the payment is 2.500.00 and 2,500.00

Thus,  there is a huge difference in the value of bonds.

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The complete question has been attached in text form:

The British government has a consol bond outstanding paying £100 per year forever.

Assume the current interest rate is 4% per year.

a. What is the value of the bond immediately after a payment is made?

b. What is the value of the bond immediately before a payment is made?

In a 10-year period, your investment of $250 grows to $2,500. What is the growth rate of your earnings?
a. 22.22%
b. 25.89%
c. 28.32%
d. 31.18%

Answers

The growth rate of your earnings is 25.89%

What does the $250 and $2500 represent in the investment?

The initial investment of $250 is the present value of the investment, whereas the  accumulated amount after 10 years is the future value of the investment, which implies that by using the future value formula of a single cash flow shown below, we can ascertain the the growth of the earnings.

FV=PV*(1+g)^N

FV=future value of the investment=$2,500

PV=initial investment=$250

g=growth rate of the earnings=unknown

N=number of years for investment=10

$2500=$250*(1+g)^10

$2500/$250=(1+g)^10

10=(1+g)^10

10 can be rewritten as (10)^1

(10)^1=(1+g)^10

divide indexes on both sides by 10

(10)^(1/10)=1+g

g=(10)^(1/10)-1

g=25.89%

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a stock quote indicates a stock price of $94 and a dividend yield of 4%. the latest quarterly dividend received by stock investors must have been per share.

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The latest quarterly dividend received by stock investors must have been per share is $3.4 per share.

A dividend is a distribution of earnings through an employer to its shareholders. when an employer earns an income or surplus, it may pay a proportion of the income as a dividend to shareholders. Any quantity now not dispensed is taken to be re-invested within the commercial enterprise.

1) Stock price = $85

Dividend yield = 4%

Dividend = Stock price * Dividend yield

Dividend = 85 * 0.04

Dividend = $3.4 per share

2) Taxable yield = Bond yield * (1 - tax rate)

Taxable yield = 6.50% * (1 - 0.28)

Taxable yield = 0.0468

Taxable yield = 4.68%

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When the interest rate is lower than the coupon rate on a bond, the price of the bond will be?

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the interest rate is lower than the coupon rate on a bond, the price of the bond will be Higher then face value.

The face value of some equities may be more than the market value. When a stock's market value exceeds its face value, as in the example given above, it is said to be trading at a premium or above par. It is a premium if a stock having a face value of Rs. 10 is trading for Rs. 25.

4,600 of the 5,228 listed equities have a face value of 10 rupees. To put it another way, one in ten equities have a face value of less than ten rupees. So it comes as no surprise.

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Which aspect of membranes are proteins not important for? group of answer choices identity signalling function compartment-making permeability

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Membranes are proteins not important for identity signaling function compartment-making permeability rated Transport.

The membrane is a membrane that surrounds the mobile and separates it from the outdoor environment. In animals, this membrane is the outermost overlaying of the cell whereas in vegetation, fungi, and some bacteria it's far located beneath the cellular wall.

The membrane, also known as the plasma membrane, is discovered in all cells and separates the interior of the mobile from the out of doors surroundings. The cell membrane consists of a lipid bilayer that is semi-permeable. The cell membrane regulates the transport of materials entering and exiting the cell.

Membranes are skinny sheets of tissue that cover the frame, line frame cavities, and cowl organs inside the cavities in hollow organs. important classes of body membranes are epithelial and connective tissue membranes. Sub-classes encompass mucous membranes, serous membranes, synovial membranes, and meninges.

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Carter sold 100 shares of mitsui, inc., for $8,000, but he only recognized $2,000 as income because the original purchase price was $6,000. this is because of the?

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Carter sold 100 shares of mitsui, inc., for $8,000, but he only recognized $2,000 as income because the original purchase price was $6,000. This is because of the Capital recovery concept.

Capital recovery is a break-even measure because it primarily pertains to recouping initial investment capital through investment returns. It can also be used to describe recovering invested money through the sale of assets. The phrase can also be used to describe corporate debt recovery.

Long-term assets as well as businesses, divisions, or business lines are all included in the definition of "capital recovery." For instance, if your business spends $30,000 on a printing press, it won't be able to calculate its earnings until it has recouped that amount.

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__________ refers to an attempt to cause fear or major disruptions in a society through hacking computers. such attacks target government computers, major companies, or key areas of the economy.

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Cyberterrorism refers to an attempt to cause fear or major disruptions in a society through hacking computers.

What is Cyberterrorism?

The use of the Internet to perform violent acts that result in or threaten the loss of life or substantial bodily harm in order to accomplish political or ideological advantages through threat or intimidation is known as cyberterrorism. Acts of intentional, large-scale disruption of computer networks, particularly of personal computers connected to the Internet, using tools such as computer viruses, computer worms, phishing, malicious software, hardware methods, and programming scripts can all be considered forms of internet terrorism.

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Why was michael ovitz, a dynamic deal maker, such a bad corporate administrator?

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Michael Steven Ovitz is an American businessman, investor, and philanthropist who previously worked for Disney, as well.

The authenticity paradox could be cited as one of the reasons for the fall of the great superagent, negotiator, and deal maker, Michael Ovitz. It is said people tend to follow leaders who invest in themselves and seem real to others. It is particularly in tune with modern times, i.e. disenchantment of people with politicians and business people, where masses fear being duped by the twin persona of the leaders they follow. Further, the spread of social media has accentuated this phenomenon even more.

Emotional intelligence is yet another important jewel of a leader, lack of it devastates prospects for the future. This is particularly cited in the case of Ovitz as a person-situation or person-position misfit.

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klingon widgets, inc., purchased new cloaking machinery three years ago for $5.1 million. the machinery can be sold to the romulans today for $7.3 million. klingon's current balance sheet shows net fixed assets of $3.9 million, current liabilities of $820,000, and net working capital of $141,000. if all the current accounts were liquidated today, the company would receive $935,000 cash. what is the sum of the nwc and market value of fixed assets? (enter your answer in dollars, not millions of dollars, e.g., 1,234,567. do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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The sum of the nwc and market value of fixed assets is $8,235,000

What is the sum of market value of net working capital and fixed assets?

The net working capital means the excess of current assets over the current liabilities, but the fact we should make reference to market value, means that we would make use of the current accounts whose market value is $935,000, whereas the market value of fixed assets is $7,300,000

value of nwc and fixed assets=current account market value+ market value of fixed assets

current account market value=$935,000

market value of fixed assets=$7,300,000

value of nwc and fixed assets=$935,000+$7,300,000

value of nwc and fixed assets=$8,235,000

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Which is the most important predictor of job satisfaction and employee well-being?

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The most important predictor of the job satisfaction is salary.

What is job-satisfaction?

The job satisfaction is a term that defines that how much the employees satisfy from their job.

The factor that predicts the job satisfaction and employee well-being is salary of the employees. It is the most important for the employees because it is help them to fulfill their basic needs. The amount of the salary determines whether the employee is satisfied from his job or not. If an employee gets good and reasonable salary, then the employee is completely satisfied from the job on the other hand, if the salary of the employee is low then the employee is not satisfied from this job. The salary is also, work towards the employee well-being of the employee because a good salary benefits employee is many ways.

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Which account would be credited when closing the account for fees earned for the year?

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Income summary account would be credited when closing the account for fees earned for the year.

Income summary account reflects all the temporary accounts of a business received upon closing them at the end of every accounting period. It consists of all income statement revenue and expense accounts transferred at the end of an accounting period. The net amount into the income summary account is equal to the net profit or loss that the business incurred during the period.

The income summary account summarizes income and expenses arising from operating and non-operating activities. Thus, it is also termed as a revenue or expense summary account. In all, it is an intermediate account with the balances of the revenue and expenses.

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Global competition often reduces the product life cycle mostly because:__________

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Global competition reduces the product life cycle traditional organizational structures and business models frequently change.

What is frequency?

A repeating event's frequency is measured by how frequently it occurs over a given period of time. In addition, it is frequently referred to as "temporal frequency" to highlight the distinction from "spatial frequency" and "ordinary frequency" to highlight the distinction from "angular frequency." Hertz (Hz), which is an abbreviation for one (event) per second, is the unit used to express frequency.

A repeating event's period, which is the reciprocal of frequency, is the amount of time required for one cycle to complete. For instance, the period, or T, between each heartbeat is equal to half a second if the heart beats 120 times per minute. The primary metric for defining the temporal rate of change in oscillatory systems in science and engineering is frequency.

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Which broad approach to marketing research sheds light on a particular issue at a particular time?

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The broad approach to marketing that sheds light on a particular issue at a particular time is Collecting data to address specific problems.

Marketing is the activity, collection of institutions, and procedures for producing, conveying, delivering, and exchanging value-added offerings for customers, clients, partners, and society as a whole.The four Ps of marketing are referred to as the marketing mix: product, pricing, location, and promotion. These are the essential aspects involved in the planning and marketing of a product or service, and they interact heavily.The primary goal of marketing is to generate interest in a company's products or services. This happens through market analysis, research and contemplating the interest of a business's ideal clients and appealing them through message which would be informative and useful to a business's target group.

Thus, the answer is Collecting data to address specific problems

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In south america and other ldcs with high total fertility rates, farmers engage in slash and burn of the rain forest to?

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In south America and other ldcs with high total fertility rates, farmers engage in slash and burn of the rain forest to increase the area of farming.

What is Deforestation?

Deforestation, often known as forest clearance, refers to the removal of a forest or tree stand from a piece of land before it is put to another use. Forests have been destroyed throughout history and into the present to make room for agriculture, animal grazing, and to obtain wood for construction, manufacture, and fuel. Tropical rainforests see the most severe deforestation. Deforestation is defined by the Food and Agriculture Organization of the United Nations as the conversion of forest to other land uses. Slash-and-burn agriculture is a major contributor to deforestation in the tropics.. In order to enrich the soil for crops, farmers burn enormous tracts of forest using these agricultural practices.

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there are four hotels competing with otherwise very similar products on the dimensions of price ($ per night) and amenities (measured by the number of *s awarded by customer reviews). which of these hotels are on the efficient frontier?

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Hotels B, C, and D are on the efficient frontier as these  four hotels competing with otherwise very similar products on the dimensions of price ($ per night) and amenities (measured by the number of *s awarded by customer reviews).

What is meant by Efficient Frontier ?

The efficient frontier, a group of ideal portfolios, offers either the lowest risk or the best predicted return for a given amount of risk. Portfolios below the efficient frontier are not optimal since they do not provide enough return for the level of risk. Portfolios that cluster to the right of the efficient frontier are not optimal since they have a higher level of risk for the given rate of return.

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if 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? what is this total amount expressed on a per unit basis?

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If 12,500 units are produced $58,750 of manufacturing overhead cost incurred to support this level of production $4.70 is the total amount expressed on a per unit basis.

More about manufacturing overhead cost:

All ancillary expenses incurred throughout the production process are referred to as manufacturing overhead. Units created within an accounting periods are subject to this overhead.

All marketing and management activities are not included in manufacturing overhead. As a result, expenses related to corporate salaries, legal and audit fees, and bad debts are excluded from manufacturing overhead.

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paul and melissa recently went through a very nasty divorce. one of the issues was paul's less than forthright accounting of his income in determining the appropriate level of alimony.

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In determining the appropriate level of alimony, the method the IRS likely used to select the return for audit was d. Spousal tip.

What is the spousal tip?

The spousal tip method is an audit method that the IRS can use to select the return for audit of the income of a couple going through a nasty divorce, where the accounting for alimony is not forthright.

Other methods that the IRS can use to select the return for audit of a taxpayer's income include:

Document perfectionInformation matchingDIF system.

Since document perfection and information matching are self-explanatory, let us look at the DIF system and spousal tip in more detail.

Specifically, the DIF system compares the tax returns of peers who enjoy similar incomes or jobs.  On the other hand, the Spousal Tip is based on more details provided by the offended spouse.

Thus, to select the return for audit, the IRS used d. Spousal tip.

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Question Completion:

For the next tax return, identify the method the IRS likely used to select the return for audit.

Paul and Melissa recently went through a very nasty divorce. One of the issues was Paul's less than forthright income accounting in determining the appropriate level of alimony.

a. Document perfection

b. Information matching

c. DIF system

d. Spousal tip

Wal-mart is famous for requesting ever lower price points from its suppliers: if a supplier offers a product for $45.00, wal-mart will ask the supplier to consider introducing a similar product for $39.00. according to the heckscher-ohlin factor theory, which consequences do such requests have?

Answers

cheaper made things

reshoring is the practice of moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

Answers

It is true to say that reshoring involves shifting operations from the nation where a company has its headquarters to one where wages are cheaper but the essential skills are still accessible.

Reshoring is the process of moving manufacturing and production of goods back to the nation where the business was founded. Reshoring is sometimes referred to as backshoring, inshoring, business, and onshoring. It is the reverse of reshoring, which is the practice of producing things abroad in an effort to lower labor and manufacturing costs.

Even while offshore frequently offers financial advantages, such as cheaper labor and lower production costs, reshoring business can boost an economy. Reshoring generates manufacturing jobs, which bolsters labor force, lowers unemployment, and aids in reducing trade imbalances.

Many times in the United States, businesses business even discover that the additional cost of manufacturing there is so negligible that the advantages would outweigh the labor costs reshoring, especially when taking into account the costs associated with customs and shipping from abroad.

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The difference between bid and ask prices of a currency, or the fee earned by the bank is called the _____.

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The greatest price a buyer will spend on a security is referred to as the bid price. The lowest price a seller will accept for a security is referred to as the "ask price."

A two-way price quotation that represents the best possible price at which a security can be sold and bought at a specific moment is referred to as "bid and ask" (also known as "bid and offer"). A buyer's maximum price that they are willing to pay for a share of stock or other security is represented by the bid price. The least amount a seller will accept for the identical security is represented by the ask price. When a seller is prepared to sell for the highest price or when a buyer is prepared to accept the best offer on the market, a trade or transaction happens.

One important measure of an asset's liquidity is the spread, which is the gap between the ask and bid prices. Liquidity is often better the narrower the spread.

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quizliet a 15-year bond was issued in year 5 at a discount. during year 15, a 10-year bond was issued at face amount with the proceeds used to retire the 15-year bond at its face amount. the net effect of the year 15 bond transactions was to increase long-term liabilities by the excess of the 10-year bond's face amount over that of the 15-year bond's:

Answers

Carrying amount is the effect of the year 15 bond transactions was to increase long-term liabilities by the excess of the 10-year bond's face amount over that of the 15-year bond's.

What is Carrying amount?

The cost of an asset less accumulated depreciation is its carrying amount, sometimes referred to as its carrying value. The carrying amount is often not included in the balance sheet because it needs to be determined. The carrying amount is, however, often never higher than the current market value.

According to accounting convention, original cost rather than market value is used to record assets on the balance sheet since original cost can be linked to a purchase document, like a receipt. Value in the market is more arbitrary. An asset's carrying value at the time of initial acquisition is equal to its original purchase price. However, an asset's value will shift with time.

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a firm that wants to measure how effectively and efficiently its managers are using their resources to achieve company goals is measuring .

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A firm that wants to measure how effectively and efficiently its managers are using their resources to achieve company goals is measuring  organization performance.

What is meant by organization performance?

This is the term that is sued to refer to the actual output of a firm tat would be based on the input that is used in that firm. This is actually measured against what was intended to be the output of the firm based on the input used.

Hence we can say that a firm that wants to measure how effectively and efficiently its managers are using their resources to achieve company goals is measuring  organization performance.

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marbled granite company files a suit against natural stone, inc., in a colorado court with general jurisdiction. in a delaware court with limited jurisdiction, e-sales corporation files a suit against first state bank. the difference between general and limited jurisdiction is

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The subject matter of the cases that the courts can decide is the difference between general and limited jurisdiction .

The two main types of judicial jurisdiction are subject matter jurisdiction and personal jurisdiction, which is the power of courts to adjudicate or pass and enforce judgment. Jurisdiction is a type of limitation imposed on judicial courts to ensure fairness and due process, and it must be determined at the beginning of court proceedings. Trial courts cannot adjudicate without jurisdiction, or their judgments can be overturned or declared null and void if it is proven that the court lacked jurisdiction in the first place. These two types of jurisdictions do not overlap and can be determined separately, but both must be present for a judgment to be valid.

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on her tenth birthday linda jones’s parents decide to deposit $4,000 in a savings account for their daughter. they intend to put an additional $4,000 in the account each year on her 11th, 12th, ..., 17th birthdays.  assume that the bank pays linda’s parents 8% on positive account balances but charges them 10% on negative balances.

Answers

Following are a few questions and answers in a summarized manner.

Is the $4,000 saved annually enough to cover the envisioned college costs?

No, as the maximum withdrawal allowed annually (for 4 years) at an interest rate of 8% is $12,846.23. Every year, her parents will be short $7,153.77.

Linda's 529 plan underfunded?

Yes, she will have $42,548 in her account when she reaches 18; but, this is insufficient to pay for her college expenditures.

How much should Lynda put aside each year in her 529 plan to fully cover her tuition and fees?

$6,227.51

When Lynda is 18 years old, what will the PV of her college expenses be?

The parents of Lynda must have $66,242 in her 529 accounts if they want to pay for her college expenditures.

When Lynda turns 18, her 529 accounts will be funded with the following amount:

Future value equals annual payment times annuity factor (FV annuity factor, 8%, 8 periods)

= $4,000 times 10.637

= $42,548 Her parents will withdraw this amount in 4 installments:

Maximum yearly withdrawal: $42,548 / 3.3121

= $12,846.23

Present value: Annual Withdrawal x PV Annuity Factor (8%, 4 Periods)

20,000 times 3.3121, or $66,242, is the required balance.

payment per year: $66,242 / 10.637 = $6,227.51

What is Present Value?

A future sum of money or stream of cash flows' present value (PV), assuming a given rate of return, is their current value. The discount rate determines the current value of future cash flows; the higher the discount rate, the lower the present value of the future cash flows. The key to correctly valuing future cash flows, whether they be earnings or debt obligations, is determining the appropriate discount rate.

According to the concept of present value, a sum of money is worth more right now than it will be in the future. Or, to put it another way, money received in the future is less valuable than money received in the present in the same amount.

A $1,000 gift today is worth more than a $1,000 gift in five years. Why? The $1,000 can be invested today with the expectation of earning a return over the following five years. Any interest rate that an investment might earn is taken into account by present value.

Thus,  $6,227.51 is the correct answer.

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Complete Question:

Lynda Jones College Plan On her 10th birthday Linda Jone's parents decide to deposit $4,000 in a 529 account for their daughter to go to college. They intend to put an additional $4,000 in the account each year on her 11th, 12th, ..., and 17yh birthdays. Assume all account balances will earn 8% per year. On Lynda's 18th, 19th, 20th, and 21st birthdays, her parents will withdraw $20,000 to pay for Linda's college education. Questions: Is the $4,000 savings per year sufficient to cover the anticipated college expenses? Is Linda's 529 account underfunded? What should be the annual deposit in Lynda's 529 accounts to cover entirely her tuition and fees? What will be the PV of Lynda's college tuition on her 18th birthday? Summarize the results of your analysis and provide your recommendation in this quiz. Create a spreadsheet and submit it to your DropBox.

a gain from the sale of equipment would be (added/subtracted) to (from) net income, when computing cash flows from operations using the indirect method.

Answers

Gains from operating operations that raise net income but do not result in cash receipts must be deducted from net income when converting to a cash basis.

What is net income?
Net income (NI)
, also known as net earnings, is calculated by deducting sales from cost of goods sold, selling, general and administration costs, operating expenses, depreciation, interest, taxes, and other expenses. This number can be used by investors to calculate how much a company's revenue exceeds its expenses. This number can be found on the income statement and serves as a gauge of a business' profitability. Net income is the amount of money that an individual has left over after taxes and other expenses.

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Three criteria for designing distribution networks to meet customer expectations are:_________

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Rapid response, product selection, and service are three factors to consider when constructing distribution networks to satisfy client expectations.

What Is a Distribution Network?

A distribution network in a supply chain is a connected structure of warehouses and transportation hubs that receive inventories of goods before shipping them to customers.It serves as a connecting point between the maker and the final consumer, either directly or via a retail network.In today's instant gratification consumer society, a quick and reliable distribution network is crucial.Two of the most crucial components of a distribution network are its proximity to the client and the calibre of its infrastructure.Different kinds of distribution networks, such hub-and-spoke or decentralised ones, are more effective for specific kinds of products.

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suppose you deposit $2,500 today in a savings account at 3.5% interest compounded annually. assuming no withdrawal, how much would you have at the end of 10 years?

Answers

After considering the time value of money the future value of deposits in 10 years will be- $3,526.50.

FV = PV*(1+r) ^n

Given that: -

FV = Future Value

PV = Present Value = $2500

r = rate of interest = 3.5%

n = number of periods

FV = 2500*(1+0.35) ^10

    = 2500* 1.4106

     = 3,526.50

Therefore, the future value of the deposits after 10 years will be $3,526.50

Time value of money: The time value of money is the widely held belief that receiving a sum of money now is preferable to receiving an identical sum later. It is possible to interpret it as an implication of the later-developed concept of time preference.

When weighing the opportunity costs of spending rather than saving or investing money, one factor to consider is the time value of money. As such, it is one of the reasons why interest is paid or earned: interest compensates the depositor or lender for the loss of use of their money, whether on a bank deposit or a debt. Investors are willing to forego spending money now only if they anticipate a favorable net return on their investment in the future, such that the increased value available later is sufficient to offset both the preference to spend money now and inflation (if present).

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