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Galina-37 [17]
2 years ago
5

Kari would like to save $10,000 for a down payment on a house.Illustrate the difference in years it will take her to double her

current $5,000 savings based on a 6%, 12% and 18% interest rate.
Business
1 answer:
lord [1]2 years ago
8 0

Answer:

This question requires us to tell the time in which investment of $ 5000 will double based on a 6%, 12% and 18% interest rate. Time period (n) based on a 6%, 12% and 18% interest rate is calculated below.

(FV =PV (1+i)^n)

6%

10,000 = 5,000 (1.06)^n

Log 2 = n log 1.06

n = 11.9 years

12%

10,000 = 5,000 (1.12)^n

Log 2 = n log 1.12

n = 6.1 years

18%

10,000 = 5,000 (1.12)^n

Log 2 = n log 1.18

n = 4.2 years

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You are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the United States and o
qaws [65]

The U.S. government decides to impose punitive 100 percent ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict U.S. exports to Thailand-Such targeted trade barriers can often be easily circumvented without having to locate production facilities in an expensive country like the U.S.

Explanation:

  • As long as their is no change in the  manufacturing requirements the company can  consider  Malaysia or Hong Kong  for production of Personal computers.

  • Lowering the price of the goods but if you guarantee quality good at a better price then all the trade markets will vie for your attention

  • Also exporting the personal computer to Canada or nearby market can be an alternative option

Hence such targeted trade barriers can often be easily circumvented without having to locate production facilities in an expensive country like the U.S.

6 0
2 years ago
The Hub is a business dedicated to providing rentable work spaces for local companies or self-employed individuals. As they begi
Alex

Question lacks some precise information about the cash flow. However it would be inferred IBM has a positive future investment value.

Answer:

<u>IBM</u>

Explanation:

Remember, the answer depends on the discounted cash flow results irrespective of which offer has lower cost.

Since IBM offers the computers for a single payment of $55,000 due at the end of four years. The Hub could reach a decision if the present value of money calculated by means of discounted cash flow is higher than the current cost of the investment, the Hub could then purchase the computers from IBM.

6 0
2 years ago
Read 2 more answers
A buyer of a 2003 Protege S Hatchback has a choice of 0% financing for 60 months or a $3,600 rebate. He plans to make no down pa
alekssr [168]

Answer: Option A which is the Dealership 0% financing option will be preferable if the Price of the car is less than the different of Loan monthly Payments minus Rebates.

Explanation:

OPTION 1

A buyer pays 60 monthly instalments and the interest rate is 0%. This tells us that there is no interest the value of the debt (Which is the price of 2003 Protege S hatchback) will not increase over the period of 60%, with this option time value of money is not considered.

Option 2

The buyer receives a Rebate of $3600 if the car is paid for in cash. The buyer qualifies for a loan at an effective rate of 7% per annum. The amount of a loan will be the Price of a 2003 Protege S Hatchback. Assuming the Loan will also ave a period of 60 months, The Total amount Payable over the period of 60 months equals Loan Monthly  payments multiplied by 60 months. The buyer receives a rebate of $3600, therefore The Net Amount Payable for Option 2 financing is found by multiplying Loan monthly payments by 60 months then subtract the Cash Rebate received of $3600

Let us now compare the two options to find out how Large must the Car be for option A to be preferable.

Y = The Price of a 2003 Protege Hatch Back, Which also equals the amount of debt over a period of 60 years (option A has no interest)

Monthly Payments of a loan = P

number of Periods = 60 months

Debt in 60 months  versus Loan payments multiplied by 60 months - rebate

Therefore Y ∠ P x 60 months - $3600

Option A which is the Dealership 0% financing option will be preferable if the Price of the car is less than the different of Loan monthly Payments minus Rebates.

8 0
2 years ago
Unter Components manufactures low-cost navigation systems for installation in ride-sharing cars. It sells these systems to vario
Nookie1986 [14]

Answer:

The answer is 9,360 direct labor-hours.

Explanation:

The first step is to calculate the direct labor-hours per unit. The second step is to calculate the total direct labor-hours required to produce the additional systems.

Step 1

Direct labor-hours per unit = Direct labor / Average wage rate per hour

Star100: Direct labor-hours per unit = 40 / $25 = 1.6

Star150: Direct labor-hours per unit = 50 / $25 = 2

Step 2

Total labor-hours required = Direct labor-hours per unit x Number of systems required

Star100: Total labor-hours required = 1.6 x 2,600 = 4,160

Star150: Total labor-hours required = 2 x 2,600 = 5,200

Combined direct labor-hours required = 4160 + 5,200 = 9,360

5 0
2 years ago
Suppose a young chef who recently graduated from culinary school in Cuba looks for work at local restaurants but is unable to fi
Ainat [17]

Answer:

a. The chef should report her income from cooking classes held at her apartment.

b. the chef should continue and try to expand her cooking classes with reporting her income.

c. started earning and try to secure the license to get a job.

Explanation:

The young chef who got graduated from Cuba should try to secure a license first in order to secure a good job. The chef was unable to find a job and so she started cooking classes at her home. The income was unreported as she did not had license so she is unable to report her income to the government.

7 0
2 years ago
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