Candace has just landed her first job and has the long-term goal to one day buy a house. She needs help investing some of her mo
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Answer:
- $2,670.21
- $1,068.09
Explanation:
1. The payment is a fixed amount so is an annuity. Using the Future value of an annuity factor table, we can find the annuity factor for 18 years at 8%.
Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
100,000 = Payment * 37.4502
Payment = 100,000/37.4502
= $2,670.21
2. Future value of annuity = Payment * Future value of an annuity factor , 18 years, 8%
140,000 = Payment * 37.4502
Payment = 140,000/37.4502
= $3,738.30
How much more would they pay = 3,738.30 - 2,670.21
= $1,068.09
Answer:
The minimum cost will be "$214085".
Explanation:
i) When quantity = 1-1500, price = $ 12.50 , and holding price is $12.50 * 20 %= $2.50.
ii) When quantity = 1501 -10,000, price = $ 12.45 , and holding price is $12.45 * 20 %= $2.49.
iii) When quantity = 10,0001- and more, price = $ 12.40 , and holding price is $12.40 * 20 %= $2.48.
know we should calculate the total cost of EOQ1 and break ever points (1501 to 10,000)units
The total cost is less then 15001. So, optimal order quantity is 1501, that's why cost is = $214085.