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Lubov Fominskaja [6]
2 years ago
14

Joe Beary wants to attend Riverside College. Eight years from today he will need $50,000. If Joe's bank pays 6% interest compoun

ded
semiannually, what must Joe deposit today to have $50,000 in 8 years?
Business
1 answer:
dexar [7]2 years ago
6 0

Answer:

  • <u><em>$31,158</em></u>

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

Explanation:

Use the formula for compound interest, with <em>semiannual</em> compound interest rate.

      Future\text{ }Value=Deposit\times (1+APR/n)^{(n\times t)}

For<em> semiannual </em>compound interest the number of periods, n, in a year is 2.

APR is the annual percentage rate, which is 6% in this problem. So, APR is 6%/2 = 0.06/2 = 0.03

Then, substitute in the formula with:

  • Future value: $50,000
  • APR/n = 0.03
  • n × t = 2 × 8 = 16

       \$50,000=Deposit\times (1+0.03)^{16}\\\\\\Deposit=\$50,000/(1.03)^{16}=\$31,158.35

Round to the nearest dollar: $31,158.

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The Technology department at Watkins Transit has a budgeted annual cost of $65,000. The department has a capacity to handle 250
Mrrafil [7]

Answer: $14,625

Explanation:

Based on the information given, if practical capacity is used to allocate cost, the cost that is allocated to shipping will be:

= Budgeted annual cost/200 × Number of shipping work stations

= 65000/200 × 45

= $14,625

3 0
1 year ago
Michael works as a sales representative for an oilfield supply business in West Texas. He sells highly technical safety equipmen
Sphinxa [80]

Answer:

d. the complexity of the product.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. The pre-service strategies includes identifying the following target market, design, branding, market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.

Personal selling also known as face-to-face selling can be defined as a sales technique or strategy in which the salesperson meets with the potential buyer (customer) for the sole purpose of convincing him or her to buy a product.

For Michael, personal selling works better than other forms of promotion because of the complexity of the product i.e high technicalities associated with the product. The product Michael are highly technical and as such would require guidance or explanation on how to safely use them.

4 0
2 years ago
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $180 million. The bonds mat
pychu [463]

Answer:

Bond Price = $149.1136446 million rounded off to $149.11

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 180 million * 0.08 * 6/12 = 7.2 million

Total periods (n) = 20 * 2 = 40

r or YTM = 0.1 * 6/12 = 0.05 or 5%

The formula to calculate the price of the bonds today is attached.

Bond Price = 7.2 * [( 1 - (1+0.05)^-40) / 0.05]  +  180 / (1+0.05)^40

Bond Price = $149.1136446 million rounded off to $149.11

3 0
1 year ago
Jane transferred a piece of real estate to her son Christopher 6 months ago. Jane purchased the real estate for $90,000 six year
goldenfox [79]

Answer:

c. Christopher will have a dual basis for income tax purposes.

Explanation:

Due to the fact that the basis of Jane in the specific property was higher than the FMV of the property on the specific date that she gave out the property, therefore, the double basis principle will apply to Christopher. In addition, Christoper will not collect any additional basis for the tax paid on the gift. The correct answer is option c.

7 0
1 year ago
Which of the following would likely result from a Malaysian quota on peanuts imported from the United States? The price of peanu
kolbaska11 [484]

Answer:

<em>The price of peanuts would increase in Malaysia.</em>

Explanation:

Almost all countries of the world are involved in building trade relationships because not every crop or product can be grown in a single company.

A country rich in an item tends to export the extra amounts of that particular product. In exchange, it might import other products which have a short production rate in its own countries.

<u><em> But as we all know, the prices of the imported items are often higher as compared to the local products of a country.</em></u>

Hence, in the scenario mentioned in the question, it is most likely that Malaysia will increase its prices of peanuts imported from United States.

8 0
1 year ago
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