Mr Jones Has Two Investments

question 46

Short Answer

Mr. Jones has two investments. The first is currently worth $50,000 and has an annual yield of 10% compounded continuously. The second is currently worth $70,000 and has an annual yield of 8% compounded continuously. After how many years will the two investments be worth the same amount? Enter your answer in years to one decimal place (no units).

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Definitions:

Job-Order Costing

An accounting method that collects and assigns manufacturing costs to individual units or batches of production, suitable for customized products.

Machine-Hours

A measure of the amount of time a machine is utilized during the production process, often used in cost accounting to allocate expenses.

Job-Order Costing

A costing method used to accumulate costs associated with a specific batch of products or job, allowing for detailed tracking of production expenses.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead incurred.