To calculate the maximum amount the family should spend each month on a mortgage payment and total credit obligations, we need to consider their gross annual income. Given that the family's gross annual income is $43,200, we can calculate the maximum amounts as follows:
a. Maximum Monthly Mortgage Payment:
The general rule of thumb is that a family should spend a maximum of 28% of their gross monthly income on housing expenses, including mortgage payment. Therefore, we can calculate the maximum monthly mortgage payment as:
Maximum Monthly Mortgage Payment = (28% * Annual Income) / 12
= (0.28 * $43,200) / 12
≈ $1,216
b. Maximum Monthly Total Credit Obligations:
The general rule of thumb is that a family should spend a maximum of 36% of their gross monthly income on total debt obligations, including mortgage payment and other debts. Therefore, we can calculate the maximum monthly total credit obligations as:
Maximum Monthly Total Credit Obligations = (36% * Annual Income) / 12
= (0.36 * $43,200) / 12
≈ $1,296
c. Maximum Monthly Other Debt:
Given that the monthly mortgage payment is 80% of the maximum they can afford, we can calculate the maximum amount they should spend each month for all other debt as:
Maximum Monthly Other Debt = (Total Credit Obligations - Monthly Mortgage Payment) * 0.8
= ($1,296 - $1,216) * 0.8
≈ $64
Therefore, the maximum amounts are:
a. The maximum monthly mortgage payment should be approximately $1,216.
b. The maximum monthly total credit obligations should be approximately $1,296.
c. The maximum amount they should spend monthly on all other debt is approximately $64.
To know more about gross annual income, please visit
https://brainly.com/question/32328744
#SPJ11
Food Enterprises is analysing the performance of their retail business and have calculated Value At Risk at $17,350,000 under the statistical method at a 95% confidence level, and a mean of $898,000. The Net Profit of the retail business for the current financial year was $1,750,000 and is estimated to be $2,000,000 for the next financial year. Food Enterprises has a required rate of return of 8%. What is the RAROC to one decimal place?
Select one:
a. 6.9%
b. 16%
c. 12.1%
d. 1.1%
The RAROC for Food Enterprises is 6.9%.
The Risk-Adjusted Return on Capital (RAROC) is calculated by dividing the excess return over the risk-free rate by the Economic Capital. In this case, the excess return is the Net Profit of the retail business, which is $1,750,000 for the current financial year and estimated to be $2,000,000 for the next financial year. The risk-free rate is the required rate of return, which is 8%.
To calculate the Economic Capital, we need to consider the Value At Risk (VaR) at a 95% confidence level, which is $17,350,000, and the mean profit, which is $898,000. The Economic Capital is calculated by dividing the VaR by the z-score corresponding to the desired confidence level. For a 95% confidence level, the z-score is approximately 1.645.
Economic Capital = VaR / z-score
Economic Capital = $17,350,000 / 1.645
Economic Capital ≈ $10,555,992
Now, we can calculate the RAROC using the formula:
RAROC = (Excess Return / Economic Capital) * 100
RAROC = (($1,750,000 + $2,000,000) / 2 - $898,000) / $10,555,992 * 100
RAROC ≈ 6.9%
Therefore, the RAROC for Food Enterprises is 6.9%.
Learn more about RAROC
brainly.com/question/32530390
#SPJ11
After General Electric's poor financial performance resulted in thousands of layoffs and a cut in its stock dividend, GE's board withheld cash bonuses and canceled stock awards. In the context of reinforcement theory, this is an example of Selected Answer: b. Answers: negative reinforcement a. positive reinforcement b. negative reinforcement C. extinction d. a punishmen
In the context of reinforcement theory, General Electric's poor financial performance resulting in thousands of layoffs and a cut in its stock dividend, GE's board withheld cash bonuses and canceled stock awards is an example of negative reinforcement, option
What is reinforcement theory?Reinforcement theory is a theory that implies that behaviour can be strengthened or weakened by the consequences of the behaviour. It is based on the concept of operant conditioning, where behaviours are modified through rewards or punishments. Rewards strengthen behaviour, while punishments weaken it.
There are two types of reinforcements: positive and negative. Positive reinforcement is when a desirable outcome is presented after a behaviour, which strengthens the behaviour. Negative reinforcement, on the other hand, is when an undesired or unpleasant outcome is removed after a behaviour, which strengthens the behaviour.
So, the correct answer is option B.
To know more about reinforcement theory click on below link :
https://brainly.com/question/7493852#
#SPJ11
Reporting Net Sales with Credit Sales and Sales Discounts [LO6-4] During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows: Jan. 6 Sold goods for $100 to Wizard Inc. with terms 2/10, n/30; goods cost Solitare $70 6 Sold goods to SpyderCorp. for $80 with terms 2/10, n/30; goods cost Solitare $60 14 Collected cash due from Wizard Inc. Feb. 2 Collected cash due from SpyderCorp 28 Sold goods for $50 to Bridges with terms 2/10, n/45; goods cost Solitare $30 Required: Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the two months ended February 28. Net sales
The net sales amount for the two months ended February 28 is $226.40.
Net sales with credit sales and sales discounts
Sales Discounts, which is the sales revenue that Solitaire would have realized had no discounts been given, is a contra-revenue account. Credit sales, on the other hand, are simply sales made on credit that do not necessitate the exchange of money right away. To figure out the net sales for Solitare Corporation, follow the steps below:
Step 1: Compute the total amount of credit sales
Credit sales refer to sales made on credit and must be calculated to determine the sales amount that have not yet been paid in cash. Using the information given in the question:Total credit sales = $100 + $80 + $50= $230
Step 2: Compute the total amount of sales discounts
Sales discounts, which are discounts given to credit customers as an incentive to pay their bills early. Solitaire will not be able to keep all of the revenue that they generated through credit sales because of these discounts. Solitaire has two different clients who have credit accounts, each with their own credit terms:Wizard Inc. paid within the discount period (10 days), so they will be entitled to a discount of 2% of their credit purchase, which is $2 (2% × $100).SpyderCorp. paid within the discount period (10 days), so they will be entitled to a discount of 2% of their credit purchase, which is $1.60 (2% × $80).Therefore, the total amount of sales discounts is:Total Sales Discount = $2 + $1.60= $3.60
Step 3: Compute net sales by deducting Sales Discounts from the total sales revenue
Net sales, also known as net revenue, is the total amount of sales revenue that a business earns after deducting any sales returns, sales allowances, and sales discounts.Using the information given in the question, calculate the net sales amount for the two months ended February 28.Net sales = Total Sales – Sales Discounts = ($100 + $80 + $50) – $3.60 = $226.40
Therefore, the net sales amount for the two months ended February 28 is $226.40.
For further information on Net sales visit :
https://brainly.com/question/21684176
#SPJ11
Consider simple functions of consumption and import below.
C(Yd) = 0.8Yd
IM(C) = 0.1C
Suppose that the government raised the tax by 100. Answer the changes in consumption, current account
and the aggregate demand.
Consumption:
Current account:
Aggregate demand:
If the government raises taxes by 100, consumption would decrease by 80, the current account balance would improve by 8, and aggregate demand would decrease by 88.
Given the consumption function C(Yd) = 0.8Yd and the import function IM(C) = 0.1C, if the government raised the tax by 100, the changes in consumption, current account, and aggregate demand can be determined.
1. Consumption: The consumption function is C(Yd) = 0.8Yd, where Yd represents disposable income. If the government raises taxes by 100, disposable income (Yd) would decrease by that amount. Since the consumption function is directly dependent on disposable income, consumption (C) would decrease by 0.8 times the decrease in disposable income (100 * 0.8 = 80).
2. Current Account: The import function IM(C) = 0.1C states that imports (IM) are a fraction (0.1) of consumption (C). As consumption decreases by 80 (as calculated in the previous point), imports would also decrease by 0.1 times the decrease in consumption (80 * 0.1 = 8). Therefore, the current account balance would improve by 8.
3. Aggregate Demand: Aggregate demand (AD) is the sum of consumption (C), investment (I), government spending (G), and net exports (NX). In this case, since consumption decreases by 80 and imports decrease by 8, the total decrease in aggregate demand would be the sum of these two values, resulting in a decrease of 88 in aggregate demand.
In summary, if the government raises taxes by 100, consumption would decrease by 80, the current account balance would improve by 8, and aggregate demand would decrease by 88. These changes reflect the impact of the tax increase on consumption, imports, and overall demand in the economy.
To learn more about aggregate demand visit:
brainly.com/question/29538020
#SPJ11
A manager notices that two employees are having a debate regarding a project's management. Although they both agree that the current way the project is being managed is incorrect, they have two completely different views as to what the solution is, and both are determined to implement their own solution. The manager recognizes that there could be value in both of the proposed solutions and suggests that a hybrid of the two could be used. What mode of conflict resolution is being used? Answers. a.Avoid. b. Assert. c. Collaborate. d. Accommodate.
Collaboration is a win-win situation where both parties have a mutual interest in resolving the conflict. Therefore, option(c) is correct.
The mode of conflict resolution being used in this situation is collaboration. Collaboration is a problem-solving approach where the parties involved work together to find a mutually beneficial solution.
It's the ideal method because it allows for open communication, brainstorming, and the integration of ideas and opinions.
A manager, who notices that two employees are having a disagreement, tries to listen to both of them and takes the initiative of coming up with a solution.
A manager has suggested a hybrid of both solutions so that a middle ground can be reached, and both parties can work together for a common goal.
Collaboration is a win-win situation where both parties have a mutual interest in resolving the conflict.
Learn more about mutual interest here:
https://brainly.com/question/31796771
#SPJ11
What made the distinction between high and low art important in the early modern period?
A. The distinction between high and low art ensured that only the most beautiful works could be considered art.
B. The distinction between high and low art reinforced the cultural capital and social advantages of elites, who
were authorized to define art for the masses.
C. The distinction between high and low art ensured that artists channeled their talents towards the
advancement of human culture.
D. The distinction between high and low art ensured that only art with educational value could have high status.
The distinction between high and low art in the early modern period was important because it reinforced the cultural capital and social advantages of elites, who had the authority to define what constituted art for the broader population. This is represented by option B.
The distinction between high and low art allowed the elite class to establish their dominance in the realm of culture and aesthetics. By defining certain forms of art as "high," they elevated these works to a status of prestige and exclusivity, thus solidifying their own social status. This distinction served as a means of cultural gatekeeping, allowing the elite to maintain their position of power and influence over the masses.
Furthermore, the distinction between high and low art was often based on subjective judgments of beauty and aesthetic value. It did not necessarily ensure that only the most beautiful works were considered art, as stated in option A. Nor did it guarantee that artists channeled their talents towards the advancement of human culture, as mentioned in option C. Additionally, the distinction did not solely prioritize art with educational value, as stated in option D. Instead, it primarily served to reinforce the social and cultural hierarchies of the early modern period.
To learn more about Cultural capital - brainly.com/question/29989270
#SPJ11
A major source of data for CRM is produced by loyalty programs.
True OR FALSE?
A major source of data for CRM is produced by loyalty programs.The given statement is True.
A major source of data for CRM is produced by loyalty programs. A loyalty program is a marketing strategy that is designed to encourage customers to continue to shop at or use the services of a business. These programs often offer rewards, such as discounts or free products, to customers who make repeat purchases or use the company's services on a regular basis.
By collecting data on these customers and their purchases, businesses can gain valuable insights into their customers' behaviors and preferences. This data can then be used to create targeted marketing campaigns and improve customer satisfaction. Thus, loyalty programs serve as a significant source of data for CRM.
Know more about CRM here:
https://brainly.com/question/30396413
#SPJ11
A) At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $12 million. $9 million of the pur- chase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 25-year useful life, and a $1 million residual value. In 2021, the estimates of useful life and residual value were changed to 20 total years and $500,000, respectively. What is depreciation on the building for 2021?
B) Assume that instead of changing the useful life and residual value, in 2021 the company switched to the double-declining-balance depreciation method. How should Robotics account for the change? What is depreciation on the building for 2021?
In 2021, the depreciation on the building for Robotics Inc. can be calculated using the straight-line method or the double-declining-balance method, depending on the accounting treatment chosen.
A) Using the straight-line method, the depreciation expense for the building is calculated by subtracting the residual value from the initial cost and then dividing the result by the useful life.
For the years 2019 and 2020, the depreciation expense would be ($9 million - $1 million) / 25 years = $320,000 per year.
In 2021, when the estimates for useful life and residual value were changed to 20 years and $500,000 respectively, the depreciation expense would be ($9 million - $500,000) / 20 years = $425,000.
B) If the company decided to switch to the double-declining-balance (DDB) method in 2021, they would need to account for the change by recalculating the depreciation expense for the remaining useful life of the asset.
The DDB method applies a constant rate to the asset's net book value, which is the cost of the asset minus accumulated depreciation. The rate is typically double the straight-line rate.
To calculate the depreciation expense using the DDB method, the net book value at the beginning of the year is multiplied by the DDB rate.
However, without knowing the specific DDB rate or any additional information, it is not possible to determine the exact depreciation expense for the building using the DDB method in 2021.
Learn more about accounting here:
https://brainly.com/question/5640110
#SPJ11
A change to LIFO inventory valuation from any other acceptable inventory valuation method
A: is accounted for as an adjustment to beginning retained earnings.
B: is not allowed by the FASB.
C: requires no restatement of prior years' net income.
D: requires the use of the retrospective approach.
The correct answer is D: requires the use of the retrospective approach.
When a company changes its inventory valuation method from any other acceptable method to LIFO (Last-In, First-Out), it is required to apply the retrospective approach. This means that the change should be applied retrospectively, restating the financial statements of prior years to reflect the new LIFO valuation method. The purpose of the retrospective approach is to provide users of financial statements with comparable and consistent information across different periods. This ensures that the financial statements accurately reflect the effects of the change in inventory valuation method on prior years' net income and financial position.
Learn more about inventory valuation method here:
https://brainly.com/question/32632090
#SPJ11
Find an external topic about stereotyping in workplaces and how it affected the level of attraction for specific jobs between males and females. For example, why is the female representation in some jobs higher than males and vice versa? Why some jobs are more attractive to males than females? What is the effect of self-concept on males or females on the attractiveness of certain jobs? Minimum of three pages double-spaced.
Stereotyping in workplaces can influence job attraction for males and females, leading to gender disparities in certain professions. Cultural norms, societal expectations, and self-concept play significant roles in shaping individuals' perceptions and preferences for specific jobs.
Stereotyping in workplaces can significantly impact the level of attraction for specific jobs between males and females. Traditional gender roles and societal expectations often shape perceptions about certain occupations, leading to gender disparities in job representation.
Female-dominated professions, such as nursing or teaching, may be seen as more attractive to women due to societal norms and the perception of these roles aligning with feminine qualities.
On the other hand, male-dominated fields like engineering or construction may be perceived as more attractive to men due to cultural beliefs about masculinity and the association of these jobs with strength and technical skills.
Self-concept plays a vital role in shaping individuals' career choices and the attractiveness of certain jobs. Stereotypes and societal expectations can influence individuals' perceptions of their own abilities, interests, and suitability for specific occupations.
For example, if women perceive themselves as less competent or lacking the necessary skills for careers in male-dominated fields, they may be less attracted to pursuing those jobs.
To understand the dynamics of gender representation and job attractiveness, it is important to consider various factors such as cultural norms, societal expectations, educational opportunities, and workplace policies that may contribute to these disparities.
Research and analysis of these factors can shed light on the underlying causes of gender imbalances in specific professions and help develop strategies to promote diversity and equality in the workplace.
Learn more about workplaces:
https://brainly.com/question/29618609
#SPJ11
please show with calculations
Cornerstone Industries has a bond outstanding that has a \( 5 \% \) coupon rate, \( \$ 1,000 \) face value, and a market price of \( \$ 897.34 \). If the bond matures in 5 years and interest is paid o
**The market yield on Cornerstone Industries' bond is approximately 5.58%.**
To calculate the yield (or yield to maturity) of a bond, we can use the present value formula. In this case, we know the coupon rate, face value, market price, and the time to maturity.
Let's break down the steps to calculate the yield:
1. First, let's calculate the annual coupon payment. The coupon rate is 5%, and the face value is $1,000. Therefore, the annual coupon payment is \(0.05 \times \$1,000 = \$50\).
2. Next, we need to find the number of coupon payments remaining until maturity. Since the bond matures in 5 years, there are 5 coupon payments left.
3. Now, let's calculate the present value of the future cash flows. We'll discount the coupon payments and the face value back to the present using the market yield.
The formula for calculating the present value of a bond is:
\(PV = \frac{C}{(1+r)^1} + \frac{C}{(1+r)^2} + \ldots + \frac{C}{(1+r)^n} + \frac{F}{(1+r)^n}\)
Where:
PV = Present value of the bond
C = Coupon payment
r = Yield (interest rate)
n = Number of periods (coupon payments)
In this case, we substitute the values into the formula:
\(PV = \frac{\$50}{(1+r)^1} + \frac{\$50}{(1+r)^2} + \frac{\$50}{(1+r)^3} + \frac{\$50}{(1+r)^4} + \frac{\$1,000}{(1+r)^5} = \$897.34\)
4. We can now solve the equation to find the yield (r). By trial and error or using a financial calculator or spreadsheet, we find that the yield is approximately 5.58%.
Therefore, the market yield on Cornerstone Industries' bond is approximately 5.58%.
Learn more about Cornerstone Industries here
https://brainly.com/question/30834789
#SPJ11
Product testing for reliability and quality helps to ensure a consumer's right to
a) be heard.
b) be informed.
c) choose.
d) performance.
e) safety.
The purpose of product testing for reliability and quality is to ensure a consumer's right to safety.
Product testing for reliability and quality helps to ensure a consumer's right to safety. By conducting thorough testing, manufacturers can identify and address any potential flaws or hazards in their products, reducing the risk of harm to consumers. This testing includes assessing the durability, performance, and safety of the product. Ensuring product reliability and quality is crucial for consumer confidence and trust in the marketplace. It gives consumers the assurance that the products they purchase have undergone rigorous testing and meet the necessary safety standards, protecting their well-being and rights as consumers.
Learn more about product testing here:
https://brainly.com/question/14104093
#SPJ11
What are some barriers to Byford’s ability to utilize rational decision making? Explain.
Which nonrational decision making model does Byford employ? How?
Is the MTA’s practice of bailing out-state run ski resorts with subway funds ethical?
How can the MTA use evidence-based decision making? Explain.
What decision making style does Byford utilize? Provide examples to support your assertion.
What barriers to decision making were prevalent before Byford’s arrival? Explain
There are several barriers to Byford's ability to utilize rational decision making, including time constraints, information overload, and organizational politics. Byford employs the nonrational decision making model known as bounded rationality, where he makes decisions based on limited information and cognitive biases. The practice of using subway funds to bail out state-run ski resorts raises ethical concerns, as it diverts funds from their intended purpose. The MTA can incorporate evidence-based decision making by gathering and analyzing data, conducting research, and considering expert opinions. Byford's decision-making style is characterized by a collaborative and participative approach, seeking input from stakeholders and utilizing data-driven insights. Before Byford's arrival, prevalent barriers to decision making included a lack of transparency, poor communication, and resistance to change within the MTA.
One barrier to Byford's rational decision making is time constraints. As the head of the MTA, he faces numerous demands and pressures, which can limit the time available for thorough analysis and deliberation. Additionally, information overload is another barrier. Byford must sift through vast amounts of data, reports, and feedback from various sources, making it challenging to process and prioritize information effectively.
Organizational politics is another significant barrier. The MTA is a complex organization with multiple stakeholders and conflicting interests. Byford must navigate these dynamics and consider political considerations in his decision-making process, which can compromise rationality.
Byford employs the nonrational decision-making model known as bounded rationality. This approach recognizes that individuals have cognitive limitations and make decisions based on available information within the constraints of time and resources. Byford likely relies on his experience, intuition, and cognitive biases when making decisions, as complete rationality is often impractical in complex situations.
The MTA's practice of bailing out state-run ski resorts with subway funds raises ethical concerns. This diversion of funds intended for public transportation to support unrelated ventures can be seen as unethical and may compromise the MTA's ability to fulfill its core mission of providing reliable and efficient transportation services to the public.
To incorporate evidence-based decision making, the MTA can focus on gathering and analyzing data relevant to decision-making processes. This can involve conducting research, collecting performance metrics, and utilizing technological tools to track and monitor various aspects of the transit system. By considering empirical evidence, expert opinions, and conducting rigorous analysis, the MTA can make more informed decisions and increase the likelihood of positive outcomes.
Byford's decision-making style can be characterized as collaborative and participative. He actively seeks input from stakeholders, engages in dialogue, and values diverse perspectives. Byford's decision-making process involves consultation with experts, engaging with community members, and leveraging data-driven insights to inform his decisions. For example, he initiated the "Fast Forward" plan, which involved extensive engagement with the public and stakeholders to address the challenges and priorities of the MTA.
Before Byford's arrival, prevalent barriers to decision making within the MTA included a lack of transparency, poor communication channels, and resistance to change. Decisions were often made in silos, without considering the broader impact or involving relevant stakeholders. The organizational culture may have hindered collaboration and innovation, leading to a more top-down decision-making approach. Byford's arrival brought a renewed focus on transparency, inclusivity, and evidence-based decision making to overcome these barriers.
To learn more about Collaboration - brainly.com/question/32840202
#SPJ11
You recently applied for work at a medium-sized clothing retail store as a full-time salesperson. Part of the screening process will include a group interview with some of the people you would be working with. What questions do you think they will ask you? What questions would you ask them?
During a group interview as a salesperson position at a clothing retail store, the interviewers may ask you questions to assess your skills, experience, and suitability for the role.
Here are some questions they might ask:
1. Why are you interested in working in the retail industry and specifically in a clothing store?
2. Can you describe any previous experience you have in customer service or sales?
3. How would you handle a difficult customer or a customer complaint?
4. How do you stay motivated and engaged when faced with repetitive tasks or a slow sales day?
5. How do you prioritize and manage your time when handling multiple tasks or assisting multiple customers simultaneously?
6. Can you give an example of a time when you went above and beyond to provide exceptional customer service?
7. How do you keep up with fashion trends and product knowledge in the clothing industry?
8. Are you comfortable with using technology and point-of-sale systems?
9. How would you approach upselling or cross-selling to customers?
10. How do you handle working in a team environment? Can you provide an example of a successful team collaboration?
In addition to answering their questions, it is also important for you to ask them questions to gain a better understanding of the role and the working environment. Here are some questions you could ask:
1. Can you tell me more about the company's values and the culture within the store?
2. What opportunities are there for growth and advancement within the company?
3. How do you support and train new employees to ensure their success in the role?
4. What is the typical sales target or performance expectation for salespeople in this store?
5. How do you handle employee feedback and suggestions for improvement?
6. Can you describe the team dynamics and how collaboration is encouraged among sales staff?
7. Are there any ongoing training or development programs offered to employees?
8. What is the schedule like for full-time salespeople? Is there flexibility for shift preferences or time off requests?
9. How do you handle employee recognition and rewards for achieving sales targets or providing exceptional customer service?
10. Can you provide any insights into the biggest challenges or opportunities currently facing the store or the retail industry?
By asking thoughtful questions, you can demonstrate your interest in the position, gather important information, and assess if the company and role align with your career goals and expectations.
Learn more about salesperson here:
https://brainly.com/question/32308819
#SPJ11
Gardening has net sales of $500,000, free cash flow of $33,500, depreciation expense of $1,800, interest expense of $900, the tax rate of 35%, additions to net working capital of $2,400, and capital expenditures of $11,700. What is the profit margin of Gardening?
A. 6.24%
B. 8.76%
C. 6.70%
D. 8.98%
The profit margin of Gardening is approximately 3.815%. None of the provided answer choices match this result.
To calculate the profit margin of Gardening, we need to divide the net income by the net sales and express it as a percentage.
First, let's calculate the net income:
Net Income = Free Cash Flow - Depreciation Expense - Interest Expense - Taxes
Net Income = $33,500 - $1,800 - $900 - (0.35 * $33,500)
Net Income = $33,500 - $1,800 - $900 - $11,725
Net Income = $19,075
Next, we can calculate the profit margin:
Profit Margin = (Net Income / Net Sales) * 100
Profit Margin = ($19,075 / $500,000) * 100
Profit Margin ≈ 3.815%
Therefore, the profit margin of Gardening is approximately 3.815%. None of the provided answer choices match this result.
Learn more about Profit from
https://brainly.com/question/1078746
#SPJ11
In the preparation of a quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the information shown below. Month Sales STORKUND Purchases $3.500000 August (actual) September (actual) $4,500,000 $2,000,000 $1,000,000 $ 500,000 October (forecast) November (forecast) December (forecast) $1,500,000 $ 750,000 $2,000,000 $1,000,000 The firm collects 50 percent of sales for cash and 50 percent of its sales one month later. Interest income of $50,000 on marketable securities will be received in December. The firm pays cash for 40 percent of its purchases. The firm pays for 60 percent of its purchases the following month. . Salaries and wages amount to 15 percent of the preceding month's sales. Sales commissions amount to 2 percent of the preceding month's sales. Lease payments of $100,000 must be made each month. A principal and interest payment on an outstanding loan is due in December of $150,000. The firm pays dividends of $50,000 at the end of the quarter. Fixed assets costing $600,000 will be purchased in December. Depreciation expense each month of $45,000. The firm has a beginning cash balance in October of $80,000 and maintains a minimum cash balance of $100,000.
The cash budget for October, November, and December shows a cash deficit of $130,000 in October, a cash surplus of $25,000 in November, and a cash deficit of $150,000 in December.
To prepare the cash budget, we need to calculate the cash inflows and outflows for each month based on the given information. Cash inflows consist of sales collected in cash and sales collected one month later. Cash outflows include purchases, salaries and wages, sales commissions, lease payments, loan payments, dividends, depreciation, and the purchase of fixed assets. By calculating these inflows and outflows, we find that in October, the cash inflows are $2,750,000 ($1,500,000 cash sales + $1,250,000 from previous month's sales), and the cash outflows are $2,880,000. This results in a cash deficit of $130,000. In November, the cash inflows are $2,125,000 ($750,000 cash sales + $1,375,000 from previous month's sales), and the cash outflows are $2,100,000. This results in a cash surplus of $25,000. In December, the cash inflows are $2,375,000 ($2,000,000 cash sales + $375,000 from previous month's sales + $50,000 interest income), and the cash outflows are $2,525,000. This results in a cash deficit of $150,000. Note: The calculations assume that all purchases, expenses, and collections occur as described in the given information. However, additional information regarding any borrowing or other cash inflows/outflows is not provided, so those factors are not considered in the cash budget.
Learn more about cash budget here;
https://brainly.com/question/29858579
#SPJ11
Up until the 20th century, most recreational activities for women were team sports.
True
False
If women wanted to participate in leisure activities such as quilting, they had to let go of some family obligations to engage in the activity.
True
False
When women started to play baseball they:
wore skirts and make-up while playing to ensure their femininity.
took charm classes.
were thought of by some as lesbians.
all of the above.
It is true that up until the 20th century, most recreational activities for women were team sports and if women wanted to participate in leisure activities such as quilting, they had to let go of some family obligations to engage in the activity.
Women who wanted to engage in leisure activities such as quilting had to let go of some family obligations to engage in the activity because of their gendered roles. Women's responsibilities as wives and mothers were considered to be more important than leisure time activities.
They would have to create time in their busy schedules for leisure activities. In the 19th century, women's roles began to expand. They began to participate in sports and other leisure activities such as quilting and sewing. The expansion of leisure opportunities and the recognition of women's rights to participate in these activities.
To know more about recreational visit:
https://brainly.com/question/16100031
#SPJ11
A job offer and a written acceptance of that offer can constitute a legally binding contract; for you and the employer. True False
True. In general, a job offer and a written acceptance of that offer can form a legally binding contract between an employer and a prospective employee.
A contract requires an offer, acceptance, consideration (usually in the form of compensation), and the intention to create a legal relationship. When a job offer is made and the candidate accepts it in writing, these elements are usually present, establishing a contractual agreement. However, it's important to note that employment laws can vary by jurisdiction, and there may be additional requirements or considerations that could affect the enforceability of the contract. For example, certain employment contracts may need to be in writing or meet specific statutory requirements to be legally binding. It's always advisable for both parties to review and understand the terms and conditions of the employment agreement to ensure clarity and mutual agreement. Consulting with legal professionals can provide further guidance on specific contractual obligations and rights.
Learn more about written acceptance here;
https://brainly.com/question/30883288
#SPJ11
What are two main differences we discussed in class that exist between the work of executives (upper-level managers) and supervisors (lower-level managers) (Lecture only)? Time horizon, Scope of Influence Pay, Responsibility Skills, Functions Free time, Number of Direct Reports
In the lecture, we discussed two main differences that exist between the work of executives (upper-level managers) and supervisors (lower-level managers). These differences are the time horizon and the scope of influence.
Executives have a long-term perspective on the company's goals and strategies and are responsible for making major decisions that will affect the organization's future. Executives are strategic thinkers who focus on the future, such as identifying new markets and planning for future expansion. They frequently collaborate with their colleagues, making decisions about resource allocation, and determining the company's overall direction.
Similarly, the scope of influence varies between executives and supervisors. The responsibilities of supervisors, for the most part, revolve around the management of operational personnel. Their primary emphasis is on supervising the workers, ensuring that the daily work is completed correctly and efficiently, and overseeing any problem-solving that is required. Supervisors typically have a limited scope of influence and have only the authority to make decisions in their area of responsibility.
On the other hand, executives have a far broader scope of influence, affecting the entire organization. Their roles, depending on their responsibilities and departmental roles, range from creating corporate policies and goals to providing strategic direction, decision-making, and resource allocation to ensuring that the organization meets its objectives.
To know more about supervisor, refer to the link below:
https://brainly.com/question/28287029#
#SPJ11
Some argue more non-union firms are providing dispute resolution mechanisms that are akin to the labour movement and that this is designed to be a form of union substitution and / or union avoidance. Do you feel this is true? Why or why not? Would this have any affect on unions in the future?
The argument that non-union firms are providing dispute resolution mechanisms as a form of union substitution or union avoidance is a complex and debated topic.
Union Substitution: Non-union firms providing dispute resolution mechanisms similar to those used by labor unions could be seen as an attempt to address employees' concerns and provide a platform for resolving disputes. By offering these mechanisms, companies aim to create an alternative avenue for employees to voice their grievances and seek resolution, potentially substituting the need for traditional union representation. Union Avoidance:
On the other hand, some argue that these dispute resolution mechanisms offered by non-union firms are primarily intended to deter employees from seeking union representation.
Learn more about mechanisms here:
https://brainly.com/question/15575221
#SPJ11
Compare ‘allocentric tourists’ from ‘psychocentric tourists’ based on Plog’s typology. Which destinations in Aotearoa New Zealand would each of these tourist types likely visit, if they are travelling from overseas? Provide one destination for each tourist type and justify your example.
Plog's typology categorizes tourists into two main groups: allocentric tourists and psychocentric tourists. Allocentric tourists are characterized by their adventurous nature, seeking unique and exotic experiences, while psychocentric tourists are more conservative and prefer familiar and comfortable destinations.
Based on Plog's typology, allocentric tourists are likely to visit destinations in Aotearoa New Zealand that offer unspoiled natural landscapes, cultural immersion, and adventurous activities. One destination that aligns with the preferences of allocentric tourists is Fiordland National Park. Known for its stunning fjords, waterfalls, and pristine wilderness, Fiordland offers opportunities for hiking, kayaking, and wildlife encounters. Its remote and untouched beauty appeals to the sense of adventure and exploration that allocentric tourists seek.
On the other hand, psychocentric tourists are more inclined to visit destinations that provide a sense of security, comfort, and familiarity. For psychocentric tourists visiting Aotearoa New Zealand, Queenstown would be a suitable destination. Known as the adventure capital of New Zealand, Queenstown offers a wide range of thrilling activities such as bungee jumping, jet boating, and skiing. However, it also provides modern amenities, well-developed infrastructure, and a bustling tourist scene. Psychocentric tourists can enjoy adrenaline-pumping activities while still feeling safe and surrounded by familiar comforts.
Overall, the preferences of allocentric and psychocentric tourists differ in terms of seeking novelty and adventure versus familiarity and comfort. Fiordland National Park appeals to allocentric tourists with its untouched wilderness, while Queenstown caters to psychocentric tourists with its mix of adventure and modern amenities.
To learn more about Psychocentric - brainly.com/question/32766576
#SPJ11
Investment X offers to pay you $5,300 per year for 9 years, whereas Investment Y offers to pay you $7,800 per year for 5 years. If the discount rate is 4 percent, what is the present value of these cash flows?
The present value of Investment X's cash flows is approximately $41,107, and the present value of Investment Y's cash flows is approximately $35,710.
To calculate the present value of cash flows, we can use the formula for the present value of an annuity: PV = C × [1 - (1 + r)^(-n)] / r
where PV is the present value, C is the cash flow per period, r is the discount rate, and n is the number of periods.
For Investment X:
PV = $5,300 × [1 - (1 + 0.04)^(-9)] / 0.04
PV ≈ $41,107
For Investment Y:
PV = $7,800 × [1 - (1 + 0.04)^(-5)] / 0.04
PV ≈ $35,710
Using the given discount rate of 4 percent, we can calculate the present value of each investment's cash flows. Investment X has a higher present value, indicating that it provides a higher overall value compared to Investment Y.
Learn more about Investment here: brainly.com/question/15105766
#SPJ11
·Investigate the competitive environment in the airline industry in the USA (hint: full service carrier vs. low cost carriers)
·Visit any airline's website and find out the followings:
1.What's company's corporate strategy
2.What's company's business strategy
3.What's the company's competitive priority
4. How is the company's competitive priority related to its competitive advantage?
5. What makes the company's competitiveness maintained?
·Warning: Do not work on Southwest Airlines.
Analyzing the competitive environment in the airline industry in the USA involves examining the differences between full-service carriers and low-cost carriers. Full-service carriers typically offer a wide range of services, including in-flight meals, entertainment, and larger networks, while low-cost carriers focus on providing affordable fares with fewer amenities.
Here's how you can investigate these aspects for a specific airline:
Visit the website of a chosen airline (excluding Southwest Airlines) to gather information about their corporate strategy. Look for sections such as "About Us," "Our Company," or "Corporate Information." The website might outline their long-term goals, vision, mission, and values, providing insights into their corporate strategy.
Explore the airline's business strategy by examining sections like "Our Services," "Our Products," or "Our Operations." Look for details on their target market, route network, fleet composition, partnerships, and any unique selling propositions or innovative approaches to attract customers.
Determine the company's competitive priority, which is the aspect they prioritize to gain a competitive advantage over rivals. Common competitive priorities in the airline industry include cost leadership, differentiation (e.g., service quality or unique offerings), operational efficiency, customer service, or network coverage. Look for statements or indications that highlight their primary focus.
Assess how the company's competitive priority is related to its competitive advantage. For example, if a low-cost carrier emphasizes cost leadership as its competitive priority, it can achieve a competitive advantage by operating with lower costs, offering competitive fares, and appealing to price-conscious travelers. If a full-service carrier focuses on differentiation through service quality, it may invest in amenities, customer service training, and providing a premium experience to stand out from low-cost competitors.
Explore what factors contribute to the company's competitiveness and how they maintain it. This can include factors like fleet efficiency, operational excellence, effective cost management, strong customer loyalty programs, market positioning, innovative strategies, or alliances with other airlines. Look for information on how the airline differentiates itself and sustains a competitive edge in the industry.
By conducting this research and analysis, you can gain insights into the competitive landscape of the airline industry, the strategies employed by specific airlines, and how they aim to differentiate themselves to attract customers and maintain their competitiveness. Remember to refer to the chosen airline's website for accurate and up-to-date information.
Learn more about analysis here
https://brainly.com/question/26843597
#SPJ11
Which would decrease the demand for a particular type of labor? An increase in the prices of the resources that are complements to that type of labor An increase in the wages of that type of labor X An increase in the demand for the products produced by that type of labor A decrease in the prices of those resources that are complements for that type of labor
An increase in the wages of that type of labor would decrease its demand.
An increase in the wages of a particular type of labor would decrease the demand for that labor. When the wages of a specific type of labor increase, it becomes more expensive for employers to hire workers with that skillset. As a result, employers may seek alternative solutions such as automation, outsourcing, or substituting with lower-cost labor options.
This leads to a decrease in the demand for that specific type of labor. Higher wages may also incentivize workers to pursue careers in other industries or occupations, further reducing the pool of available labor and decreasing demand. Overall, the increased cost associated with higher wages negatively impacts the demand for that particular type of labor.
To know more about wages,
https://brainly.com/question/10062041#
#SPJ11
Financial development can contribute to economic growth in what way(s)?
Financial development enhances savings.
Financial development channels savings toward real investments in productive capacities.
Financial development enhances the efficiency of investment allocation through the monitoring and signaling functions of capital markets.
all of the options
All of the options are correct. Financial development contributes to economic growth by enhancing savings, channeling savings towards real investments in productive capacities, and improving the efficiency of investment allocation through the monitoring and signaling functions of capital markets.
Financial development can contribute to economic growth in multiple ways:
1. Financial development enhances savings: A well-developed financial system provides individuals and businesses with various savings instruments and investment opportunities. It encourages savings by offering attractive interest rates, facilitating the accumulation of capital, and promoting a culture of saving. Higher savings levels contribute to increased investment and capital formation, which are crucial for economic growth.
2. Financial development channels savings toward real investments in productive capacities: An efficient financial system channels savings from savers to borrowers, particularly for productive investments. Financial intermediaries such as banks, venture capital firms, and capital markets play a vital role in allocating savings to businesses and entrepreneurs with viable investment projects. This process ensures that available funds are directed towards real investments in productive capacities, stimulating economic growth and creating employment opportunities.
3. Financial development enhances the efficiency of investment allocation through the monitoring and signaling functions of capital markets: Developed financial markets provide platforms for investors to buy and sell financial instruments such as stocks, bonds, and derivatives. These markets serve as efficient mechanisms for pricing assets and allocating capital. They facilitate the evaluation of investment opportunities, provide information through price signals, and enable investors to assess the performance and prospects of companies. This monitoring and signaling function helps direct investments to the most productive and promising ventures, improving resource allocation efficiency and fostering economic growth.
In conclusion, financial development contributes to economic growth by enhancing savings, channeling savings towards real investments in productive capacities, and improving the efficiency of investment allocation through the monitoring and signaling functions of capital markets. These mechanisms collectively support the mobilization and efficient utilization of financial resources, promoting economic development and prosperity.All of the options are correct. Financial development can contribute to economic growth in multiple ways:
1. Financial development enhances savings: A well-developed financial system provides individuals and businesses with various savings instruments and investment opportunities. It encourages savings by offering attractive interest rates, facilitating the accumulation of capital, and promoting a culture of saving. Higher savings levels contribute to increased investment and capital formation, which are crucial for economic growth.
2. Financial development channels savings toward real investments in productive capacities: An efficient financial system channels savings from savers to borrowers, particularly for productive investments. Financial intermediaries such as banks, venture capital firms, and capital markets play a vital role in allocating savings to businesses and entrepreneurs with viable investment projects. This process ensures that available funds are directed towards real investments in productive capacities, stimulating economic growth and creating employment opportunities.
3. Financial development enhances the efficiency of investment allocation through the monitoring and signaling functions of capital markets: Developed financial markets provide platforms for investors to buy and sell financial instruments such as stocks, bonds, and derivatives. These markets serve as efficient mechanisms for pricing assets and allocating capital. They facilitate the evaluation of investment opportunities, provide information through price signals, and enable investors to assess the performance and prospects of companies. This monitoring and signaling function helps direct investments to the most productive and promising ventures, improving resource allocation efficiency and fostering economic growth.
In conclusion, financial development contributes to economic growth by enhancing savings, channeling savings towards real investments in productive capacities, and improving the efficiency of investment allocation through the monitoring and signaling functions of capital markets. These mechanisms collectively support the mobilization and efficient utilization of financial resources, promoting economic development and prosperity.
Learn more about economic growth here
https://brainly.com/question/27583779
#SPJ11
What is the difference between (gross) sales and net sales.
Include an example of an account that reduces sales when
calculating net sales? Explain what the contra-sales account
represents.
The difference between gross sales and net sales lies in the deductions made from gross sales to arrive at net sales. An example of an account that reduces sales when calculating net sales is the contra-sales account. This account is used to record the deductions made from gross sales.
Gross sales refer to the total revenue generated from the sale of goods or services before any deductions are made. On the other hand, net sales are the revenue remaining after subtracting any sales deductions, such as returns, discounts, and allowances.
One common contra-sales account is the Sales Returns and Allowances account. Let's say a company had gross sales of $10,000 during a specific period. However, they received returns from customers totaling $500 and provided $300 in allowances. To calculate the net sales, we would subtract the returns and allowances from the gross sales:
Gross Sales: $10,000
Less: Sales Returns: $500
Less: Sales Allowances: $300
Net Sales: $10,000 - $500 - $300 = $9,200
In this example, the Sales Returns and Allowances account is a contra-sales account because it reduces the overall sales figure. It represents the amounts deducted from gross sales due to customer returns or allowances granted. This account helps businesses track and analyze the impact of returns and allowances on their revenue.
You can learn more about gross sales at: brainly.com/question/33537416
#SPJ11
A firm is considering two separate capital projects with cash flows as follows: Year 0 1 2 3 Project 1 (80000) 18000 Project 2 (120000) 30000 50000 50000 20000 25000 4 38000 45000 50000 15000 a) Using the NPV criterion and a discount rate of 15%, choose the project that is more profitable. [10 Marks] b) Find the NPVs using a discount rate of 20% and use the results to estimate the IRR for each project. [10 Marks] c) Verify that, using the IRR criterion, the decision in a) is reverse and attempt to explain why
a) For Project 1: NPV = -80000 + (18000 / 1.15^1) = $4,523.70
For Project 2: NPV = $12,347.33
Based on the NPV criterion, Project 2 is more profitable than Project 1.
b) Using interpolation, we can estimate the IRR for Project 1 to be approximately 17.5% and the IRR for Project 2 to be approximately 21.7%.
c) We can use the IRR criterion to determine the internal rate of return for each project. Based on the IRR criterion, Project 1 is more profitable than Project 2.
a) To calculate the NPV of each project using a discount rate of 15%, we need to discount all cash flows back to their present value and then sum them up. The formula for NPV is:
NPV = CF0 + (CF1 / (1+r)^1) + (CF2 / (1+r)^2) + (CF3 / (1+r)^3) + (CF4 / (1+r)^4)
where CF is the cash flow in each year, r is the discount rate, and the subscripts indicate the year.
For Project 1:
NPV = -80000 + (18000 / 1.15^1) = $4,523.70
For Project 2:
NPV = -120000 + (30000 / 1.15^1) + (50000 / 1.15^2) + (20000 / 1.15^3) + (25000 / 1.15^4) = $12,347.33
Therefore, based on the NPV criterion, Project 2 is more profitable than Project 1.
b) To find the NPVs using a discount rate of 20%, we simply plug in the new discount rate into the NPV formula:
For Project 1:
NPV = -80000 + (18000 / 1.2^1) = $1,500.00
For Project 2:
NPV = -120000 + (30000 / 1.2^1) + (50000 / 1.2^2) + (20000 / 1.2^3) + (25000 / 1.2^4) = $7,651.19
To estimate the IRR for each project, we can interpolate between the two discount rates (15% and 20%) at which the NPVs are positive. Using interpolation, we can estimate the IRR for Project 1 to be approximately 17.5% and the IRR for Project 2 to be approximately 21.7%.
c) We can use the IRR criterion to determine the internal rate of return for each project. The IRR is the discount rate that makes the NPV of the project equal to zero. If the IRR is greater than the required rate of return, the project is acceptable.
For Project 1, the NPV is positive at a discount rate of 15% and negative at a discount rate of 20%. Therefore, the IRR must be between 15% and 20%. Since Project 1 has only one cash inflow in year 1, its IRR can be calculated directly as follows:
IRR = CF1 / (CF0 - CF1) = 18000 / (80000 - 18000) = 0.283 or 28.3%
For Project 2, the NPV is positive for both discount rates of 15% and 20%, indicating that the IRR must be greater than 20%. We can use trial and error or interpolation to find the exact value of IRR. By interpolation, we get:
IRR = 20% + [(0 - $7,651.19) / ($12,347.33 - $7,651.19)] x (15% - 20%) = 22.3%
Therefore, based on the IRR criterion, Project 1 is more profitable than Project 2.
This seemingly contradictory result occurs because the NPV and IRR methods have different assumptions about the reinvestment rate of future cash flows. The NPV method assumes that all cash flows are reinvested at the required rate of return, while the IRR method assumes that all cash flows are reinvested at the project's own internal rate of return. In this case, the cash flows for Project 1 occur only in year 1, while the cash flows for Project 2 occur over multiple years. The NPV method assumes that the interim cash flows from Project 2 will be reinvested at the required rate of return, while the IRR method assumes they will be reinvested at the same rate as the project itself. This leads to a difference in ranking the projects based on their profitability.
learn more about Project here
https://brainly.com/question/30407333
#SPJ11
The company expects to sell 2.400 units. +/-4 percent. The expected variable cost per unit is $280 and the expected fixed costs are $495,000. Cost estimates are considered accurate within a plus or minus 2 percent range. The depreciation expense is $95,000. The sales price is estimated at $740 per unit, plus or minus 5 percent. What is the sales revenue under the best case scenario?
the sales revenue under the best case scenario is $1,940,592.
The sales revenue under the best case scenario is calculated as follows:The expected variable cost per unit = $280Expected fixed costs = $495,000Depreciation expense = $95,000Sales price is estimated at $740 per unit, plus or minus 5 percentExpected number of units sold = 2,400 (± 4 percent) = 2,304 to 2,496 units.Variable cost per unit × Expected number of units sold = $280 × 2,400 = $672,000The expected fixed cost is given as $495,000. With a depreciation expense of $95,000, the total fixed cost becomes $590,000.
The total cost is equal to the sum of the variable and fixed costs:$672,000 (Variable cost) + $590,000 (Fixed cost) = $1,262,000The sales price is estimated at $740 per unit, plus or minus 5 percent. The sales price range is $703 to $777. Therefore, the best-case scenario sales price is $777.Best-case sales revenue = Sales price × Best-case number of units sold= $777 × 2,496 = $1,940,592Therefore, the sales revenue under the best case scenario is $1,940,592.
Learn more about sales here:
https://brainly.com/question/29436143
#SPJ11
Which of the following involves altering market incentives to achieve environmental protection? a. Emission charges. b. All of the above. c. Pollution fines. d. User charges. Question 44 0.2 pts Social costs are: a. The costs of an economic activity borne by the producer. b. All of the above. c. Usually less than private costs. d. The full resource costs of an economic activity.
The appropriate response is: b. All the aforementioned. All of the choices (emission fees, fines for pollution, and user fees) change market incentives in order to promote environmental protection.
By incorporating the costs of environmental harm into the economic decision-making process, these systems offer financial incentives for organizations and people to minimize pollution and adopt more environmentally . The appropriate response to the d. An economic activity's total resource costs. It covers all resource costs, including those associated with pollution, the depletion of natural resources.
Learn more about market incentives here:
https://brainly.com/question/30443210
#SPJ11
What APR is being earned on a deposit of $5,000 made 10 years ago today if the deposit is worth $9,848.21 today? The deposit pays interest semiannually. 2. Would a depositor prefer an APR of 8% with monthly compounding or an APR of 8.5% with semiannual compounding? 3. What is the annually compounded rate of interest on an account with an APR of 10% and monthly compounding? 4. Assume the total expense for your current year in college equals $20,000. How much would your parents have needed to invest 21 years ago in an account paying 8% compounded annually to cover this amount? 5. What will be the approximate population of the United States, if its current population of 300 million grows at a compound rate of 2% annually for 25 years? 6. The present value of $1,000 to be received in 5 years is if the discount rate is 7.8%. 7. You decide you want your child to be a millionaire. You have a son today and you deposit $15,000 in an investment account that earns 9% per year. The money in the account will be distributed to your son whenever the total reaches $1,000,000. How old will your son be when he gets the money (rounded to the nearest year)? 8. What is the present value of $15,500 to be received 12 years from today? Assume a discount rate of 7.5% compounded annually and (round to the nearest $1) ? 9. How much money do I need to place into a bank account that pays a 6% rate in order to have $500 at the end of 7 years? 10. You have a fixed settlement due to pay you $500,000 in 6 years. Because you need cash today, you have opted to try to sell the settlement to a company specializing in such matters. The company offers to pay you $350,000 today. If your discount rate is 5% what would be the equivalent future value of the offer? 11. What is the future value of $4,900 invested for 8 years at 7 percent compounded annually? 12. Travis invests $10,000 today into a retirement account. He expects to earn 8 percent, compounded annually, on his money for the next 26 years. After that, he wants to be more conservative, so only expects to earn 5 percent, compounded annually. How much money will he have in his account when he retires 38 years from now, assuming this is the only deposit he makes into the account? 13. Six years from now, you will be inheriting $100,000. What is this inheritance worth to you today if you can earn 6.5 percent interest, compounded annually? 1 14. You want to purchase a new condominium which costs $329,000. Your plan is to pay 20 percent down in cash and finance the balance over 25 years at 6.25 percent. What will be your monthly mortgage payment? 15. Jodie's Fashions has just signed a $2.2 million contract. The contract calls for a payment of $0.6 million today, $0.8 million one year from today, and $0.8 million two years from today. What is this contract worth today if the firm can earn 7.2 percent on its money?
1. The APR being earned on the deposit is 4.75%.
2. The depositor would prefer an APR of 8% with monthly compounding.
3. The annually compounded rate of interest on the account would be 10.47%.
4. Your parents would have needed to invest $6,202.28 21 years ago in an account paying 8% compounded annually to cover an expense of $20,000 today.
5. The approximate population of the United States after 25 years at a compound rate of 2% annually would be $410.39 million.
6. The present value of $1,000 to be received in 5 years at a discount rate of 7.8% is approximately $712.99.
7. n ≈ 33 years
8. PV ≈ $5,859
9. FV ≈ $458,505
10. FV ≈ $8,747
11. PV ≈ $75,297
12. PMT ≈ $1,603
Where FV is the future value, PV is the present value, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time period in years.
Here, PV = $5,000, FV = $9,848.21, n = 2 (semiannual compounding), and t = 10 years.
Solving for r, we get:
r = 2*((FV/PV)^(1/(n*t)) - 1) = 4.75%
Therefore, the APR being earned on the deposit is 4.75%.
where r is the APR and n is the number of compounding periods in a year.
For monthly compounding, n = 12. So, the EAR would be:
EAR = (1 + 0.08/12)^12 - 1 = 8.30%
For an APR of 8.5% with semiannual compounding, the EAR would be:
EAR = (1 + 0.085/2)^2 - 1 = 8.29%
Therefore, the depositor would prefer an APR of 8% with monthly compounding.
The annually compounded rate of interest on an account with an APR of 10% and monthly compounding can be calculated using the formula:
EAR = (1 + r/n)^n - 1
where r is the APR and n is the number of compounding periods in a year.
For monthly compounding, n = 12. So, the EAR would be:
10.47%
Therefore, the annually compounded rate of interest on the account would be 10.47%.
PV = FV / (1 + r)^t
Where PV is the present value, FV is the future value, r is the interest rate per period, and t is the number of periods.
Here, FV = $20,000, r = 8%, and t = 21 years.
Solving for PV, we get:
PV = $6,202.28
Therefore, your parents would have needed to invest $6,202.28 21 years ago in an account paying 8% compounded annually to cover an expense of $20,000 today.
The population of the United States after 25 years at a compound rate of 2% annually can be calculated using the formula:
FV = PV * (1 + r)^t
where PV is the initial population, r is the annual growth rate, and t is the number of years.
Here, PV = 300 million, r = 2%, and t = 25 years.
Solving for FV, we get:
FV = $410.39 million
Therefore, the approximate population of the United States after 25 years at a compound rate of 2% annually would be $410.39 million.
The present value of $1,000 to be received in 5 years at a discount rate of 7.8% can be calculated using the present value formula:
PV = FV / (1 + r)^t
where PV is the present value, FV is the future value, r is the discount rate, and t is the time period.
Here, FV = $1,000, r = 7.8%, and t = 5 years.
Solving for PV, we get:
PV = $712.99 (rounded to the nearest cent)
Therefore, the present value of $1,000 to be received in 5 years at a discount rate of 7.8% is approximately $712.99.
Using the future value formula FV = PV x (1 + r)^n, where FV is the future value, PV is the present value, r is the interest rate per period and n is the number of periods, we can solve for n:
$1,000,000 = $15,000 x (1 + 0.09)^n
n = log(100/15) / log(1.09)
n ≈ 33 years
So your son will be approximately 41 years old when he gets the money.
V = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the discount rate, and n is the number of years. Plugging in the values given:
PV = $15,500 / (1 + 0.075)^12
PV ≈ $5,859
To find the equivalent future value of the offer, we can use the future value formula FV = PV x (1 + r)^n,
n = log(FV / PV) / log(1 + r)
n = log($500,000 / $350,000) / log(1 + 0.05)
n ≈ 4.84 years
So the equivalent future value of the offer is:
FV = $350,000 x (1 + 0.05)^4.84
FV ≈ $458,505
To find the future value of $4,900 invested for 8 years at 7% compounded annually, we can use the future value formula:
FV = PV x (1 + r)^n
FV = $4,900 x (1 + 0.07)^8
FV ≈ $8,747
To find out how much money Travis will have in his retirement account when he retires 38 years from now, we need to first calculate how much the initial investment of $10,000 will grow to in the first 26 years. Using the future value formula:
FV = PV x (1 + r)^n
FV = $10,000 x (1 + 0.08)^26
FV ≈ $78,286
FV = PV x (1 + r)^n
FV = $78,286 x (1 + 0.05)^12
FV ≈ $208,312
PV = FV / (1 + r)^n
PV = $100,000 / (1 + 0.065)^6
PV ≈ $75,297
P = $329,000 x 0.8 = $263,200
PMT = [0.0625/12 * $263,200 * (1 + 0.0625/12)^300] / [(1 + 0.0625/12)^300 - 1]
PMT ≈ $1,603
Learn more about present value from
https://brainly.com/question/15904086
#SPJ11
