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Maslowich
1 year ago
10

Suppose an investment broker offers to sell you a financial asset for $850. You will receive only one payment of $1,000 five yea

rs from now. What interest rate would you earn if you bought the financial asset at the offer price
Business
2 answers:
avanturin [10]1 year ago
6 0

Answer:

The interest rate is 0.06%

Explanation:

Step one :

Given data

final amount $1,000

initial principal balance $850

annual interest rate=?

time (in years)=5 years

Step two:

Applying the

Simple interest/Formula

A = P (1 + rt)

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years)

Plugin our data into the formula We have

1000=850(1+r*5)

1,000=850(1+5r)

Opening bracket we have

1,000=850+4,250r

Colleting like terms we have

1000-850=4250r

250=4,250r

Dividing both sides by 4,250 we have

r=250/4250

r=0.058

Hence the interest rate is 0.06%

Nitella [24]1 year ago
3 0

Answer:

0.035%

Explanation:

Using the formula for calculating simple interest.

Simple interest = Principal × Rate × Time/100

Since Amount = Principal + Interest

Interest = Amount - Principal

Interest = $1000 - $850

Interest = $150

If time = 5years

Principal = $850

To get the interest rate, we will substitute the given data into the simple interest formula to have;

$150 = ($850×Rate×5)/100

Cross multiplying

$15,000 = 425000×rate

Interest Rate = 15000/425000

Interest rate = 0.035%

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Petra is paying her ten employees for 40 hours a week 52 weeks each year. In 2007 Petra spent___ on wages for her employees each
Alex

Complete question:

Petra owns a coffee shop. She has ten employees.In 2007, she paid her employees minimum wage ($5.85 an hour).In 2008, the minimum wage increased to $6.55 an hour.In 2009, the minimum wage increased to $7.25 an hour. Petra is paying her ten employees for 40 hours a week 52 weeks each year. In 2007 Petra spent___ on wages for her employees each week. When the minimum wage rose in 2009, Petra had to increase her annual budget for wage from 2008 by___

Answer: $2340 ; $14,560

Explanation:

Given the following :

2007 minimum wage = $5.85/ hour

2008 minimum wage = $6.55/ hour

2009 minimum wage = $7.25/ hour

Number of Employees = 10

Number of hours = 40 hours per week for 52 weeks

Amount spent on wages per week in 2007:

Minimum wage × number of employees × number of hours per week

= $5.85 × 10 × 40 = $2340

B.)

wage increase between 2008 - 2009:

$7.25/hour - 6.55/hour = $0.7/hour

Therefore, increase in annual budget equals:

Wage increase × number of employees × number of hours per week × number of weeks

= $0.7 × 10 × 40 × 52 = $14,560

8 0
1 year ago
Read 2 more answers
When launching any technology product, a firm such as GoPro must create a balance between what is technically possible and wheth
guapka [62]

Answer:

Whether the technology provides benefits and responds to customers needs

Explanation:

Technological innovation can be defined as the introduction of new technical products and services or improving an existing ones.

One major reason for this is to address human needs and better serve individual . Therefore whenever any firm wants to launch any new product , it is important that it must create a balance between what is technically possible and whether the new technology provides benefits and responds to customers needs.

3 0
2 years ago
To understand the competitive intensity of two industries, a business consultant conducted market concentration analysis by usin
MAXImum [283]

Answer:

4. more, more

Explanation:

Options includes: 1. less, more , 2. more, less, 3. less, less, 4. more, more

Based on this calculation, the consultant concludes that industry X is <u>more</u> concentrated market than industry Y and that industry X is <u>more</u> competitive market.

The intensity of Porter competition determines the level of competition that exists in an industry. This competition can be affected by many factors, including industry focus, replacement costs, fixed costs, and industry growth rates. The intensity of competition among competitors in a given industry refers to the extent to which companies in a given industry put pressure on each other and determine each other their profit potential. If competition is fierce, competitors are trying to steal profits and market share from each other.

8 0
2 years ago
Gaur sells Jensen equipment under an arrangement whereby Gaur delivers the equipment on January 1, 2021 and receives payment on
S_A_V [24]

Answer:

B. Credit to sales revenue

Explanation:

As per revenue recognition principle, revenue should be recognized when it is earned and not when cash is received.

As per accrual basis of accounting, revenue is to be recognized when the ownership of the goods has been passed by the seller to the buyer and there is reasonable assurance that payment would be received.

When a sale is effected and goods are delivered with reasonable certainty that payment would be received, following journal entry is recorded:

Accounts Receivable A/C                                Dr.

     To Sales Revenue

(Being equipment sold recorded)

5 0
2 years ago
An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer.)
Virty [35]

Answer:

A) Year 1 cost of goods sold

B) Year 2 cost of goods sold

D) Year 2  beginning inventory

Explanation:

A) Year 1 expense of merchandise sold : The Current year cost of Goods Sold is processed by deducting finishing stock from Opening Inventory and Purchases made during the year. So in the event that the completion stock isn't right, at that point the result of above calculation will not be right so the Year 1 expense of merchandise sold for example (Current year cost of Goods Sold) will be inaccurate.  

D) Year 2 starting stock: year 2 starting stock is equivalent to year 1 completion stock. So on the off chance that off-base stock estimation is made at end of earlier year, at that point current year opening worth will be carried on as off-base.  

B) Year 2 expense of merchandise sold: The explanation is same as ans q(i.e. Year 1 expense of merchandise sold) as off-base convey forward opening stock worth will bring about wrong calculation of cost of products sold for year 2.

6 0
1 year ago
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