Roman company is preparing its cash budget for the upcoming month. the budgeted beginning cash balance is expected to be $43,000. budgeted cash receipts are $97,000, while budgeted cash disbursements are $126,000. roman company wants to have an ending cash balance of $45,000. how much would roman company need to borrow to achieve its desired ending cash balance?

$31,000

Explanation:

The computation of the borrowed amount is shown below:

= Beginning cash balance + expected cash receipts - expected cash disbursements - minimum monthly cash balance

= $43,000 + $97,000 - $126,000 - $45,000

= $31,000

Simply we add the expected cash receipts and less the expected cash disbursements and minimum monthly cash balance to the beginning cash balance so that accurate value can come.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20