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Charra [1.4K]
2 years ago
13

Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $

375,000 at the end of eight years from now. The sinking fund is expected to earn 7% interest. How much must your company deposit each year to meet this goal?
Business
1 answer:
nika2105 [10]2 years ago
4 0

Answer:

If the company makes 8 deposits, one per year earning 7% per year, in order to get $375000 at the 8 year, the company has to deposit $34,874.16 each year.

Explanation:

To get this number the best option is to use a excel spreadsheet and solver add-in. In a table with 8 columns (8 years), organize the payments and the rule of interest: payment year 1*(1+7%)^8+payment year 2*(1+7%)^7+payment year 3*(1+7%)^6+payment year 4*(1+7%)^5+payment year 5*(1+7%)^4+payment year 6*(1+7%)^3+payment year 7*(1+7%)^2++payment year 8*(1+7%)^1 where all the payments are equal (payment 1=p2=p3...=P8)

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Polar bears in captivity exhibit obsessive patterns of behavior such as pacing back and forth on the same spot, swinging their h
kherson [118]

Answer:

c. Stressed polar bears exhibit obsessive patterns of behavior.

Explanation:

  • If a polar bear is bred in captivity they show an obsessive pattern of behavior.
  • Such as the passing of the back and forths on the same spot and swimming on their heads from side to side.
  • And also use their paws to repeatedly strike their heads as a sign of stress. This shows that they don't do well in captivity.
5 0
2 years ago
Say that you purchase a house for $212,000 by getting a mortgage for $190,000 and paying a $22,000 down payment. If you get a 30
guapka [62]

Answer:

<em>1) Monthly payments:</em>

<em>         </em>Payment=\$1,394.15<em />

<em />

<em>2) Balance in ten years:</em>

<em>        </em>Balance=\$166,676.94<em />

<u><em /></u>

Explanation:

<u><em></em></u>

<u><em>1. What are the monthly payments?</em></u>

The formula to compute the monthly payment of a loan is:

       Payment=Loan\times \dfrac{r(1+r)^n}{(1+r)^n-1}

Where:

  • Payment is the monthly payment
  • r is the monthly interes rate: 8% / 12 = 0.08/12
  • n is the number of months: 12 × 30 = 360
  • Loan = $190,000

Substitute and compute:

        Payment=\$ 190,000\times \dfrac{r(1+(0.08/12))^{360}}{(1+(0.08/12))^{360}-1}

        Payment=\$1,394.15

<u><em>2. What would the loan balance be in ten years?</em></u>

<u><em></em></u>

There is a formula to calculate the balance in any number of years:

     Balance=Loan(1+r)^n-Payment\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]

Substitute with n = 10 × 12 and compute:

Balance=\$190,000(1+(0.08/12))^{(10\times 12)}-\$1,394.15\times \bigg[\dfrac{(1+(0.08/12))^{(10\times 12)}-1}{(0.08/12)}\bigg]

Balance=\$166,676.94

3 0
2 years ago
Schwiesow Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor
hoa [83]

Answer:

Total overhead= $17,600

Explanation:

Giving the following information:

Variable manufacturing overhead $ 1.65

Fixed manufacturing overhead $ 11,000

Units produced= 4,000

<u>The total overhead is the sum of the total variable cost and the total fixed costs.</u>

Total overhead= 1.65*4,000 + 11,000

Total overhead= $17,600

8 0
2 years ago
Recruiting __________ is sometimes viewed as unethical.
zhuklara [117]

Answer:

b

Explanation:

4 0
2 years ago
Due to a recent hurricane there is a major loss of sugarcane crops. At the same time in the U.S. consumers are eating healthier
Free_Kalibri [48]

Answer and explanation:

We should consider that at the same time as the hurricane, U.S. consumers were cutting back on sugar foods. It implies that the quantity demanded for sugar foods was likely to decrease bringing the prices up. However, the hurricane affecting the sugarcane crops affects the supply which will be lower. Thus, definitely, if the quantity supplied is lower so will the price.

4 0
2 years ago
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