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balu736 [363]
1 year ago
8

A new tax business, Taxes Done Right, will purchase a copying machine. After speaking with their financial advisor, they find th

at the copying machine will cost them $3,300 in 3 years. The account they will invest in earns 5% per year compounded semi-annually. In order to pay cash for the machine, how much should they deposit semi-annually in this account for 3 years?
Business
1 answer:
Juli2301 [7.4K]1 year ago
4 0

Answer: $2,845.57965

The principal to be deposited semiannually would be $2,845.58 (rounded to 2 decimal places)

Explanation:

Using compound formula below

A = p (1 + r/n)^nt

A =amount= $3,300

r = rate = 5% = 5/100 = 0.05

n = number of compounding rate (semiannually) =2 interest payments a year

t = time in years= 3

3,300 = p (1 + 0.05/2)^2(3)

3,300 = p (1 + 0.025)^6

3,300 = p (1.025)^6

3,300 = 1.15969342p

Divide both sided by 1.15969342

p = $(3,300/1.15969342)

p = $2,845.57965

p ≈$2,845.58 rounded to 2 decimal places.

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On the island of Martha's Vineyard, jobs are plentiful during the summer months, but difficult to find in September once the tou
andriy [413]

Answer:

Letter b is correct. <u>Seasonal.</u>

Explanation:

 Seasonal unemployment occurs when there are unemployed people at certain times of the year when the demand for a good or service is less than at other times.

This is a situation that occurs more frequently in tourist areas, such as the one mentioned in the question above, due to the fact that there is a greater demand for work in the high tourist season months.

The ideal is for workers who suffer from seasonal unemployment to seek economic adjustment in the low season months and diversify their activities during this period, to find other activities that guarantee the maintenance of income. It is also important for the government to create public employment policies so that this problem does not happen.

8 0
2 years ago
Can a firm with positive net income run out of​ cash? Explain. ​(Select all the choices that​ apply.) A. A firm that has positiv
aliina [53]

Answer:

Correct statements are:

B, C and D

Explanation:

A firm with positive net income can anytime run out of cash as the accounting net income is computed on accrual basis, and it is not necessary that all the related cash is collected.

Also the firm might spend a huge amount on investing in small companies, capital properties etc: which will again lead to huge cash outflow.

Financing activities generally bring the cash in the company, whereas after the financing instruments are matured, they need to be paid off. In that case, in year of maturity the entire amount will be paid which will involve huge cash outflow, and the company might run out of cash.

Therefore, all the statements except Statement A are correct.

Correct Statement are:

B, C and D

4 0
1 year ago
Brand 123 has customers in many countries purchasing its bicycles, but its managers are unsure if the brand is truly a "global b
Inga [223]

Answer: d. 30%

Explanation:

Global brands are companies that have achieved international success such that they are recognised in many other countries apart from their own and have many customers in other countries as well.

However, simply being known abroad does not classify a company as a global brand. The company must be generating sufficient revenue from their operations outside as a proportion of their total revenue their home country with sufficient meaning at least 30% of their revenue.

6 0
1 year ago
A cash budget will not help identify possible problem times.<br><br> True<br> False
Firlakuza [10]

The correct answer is False

Explanation:

A cash budget refers to a tool used to predict and control the amount of money that would be spent, this applies to the money that is expected will be spent in a business during a certain time or the money that is expected to be spent for a project. Due to this, in projects, a cash budget is useful to identify possible problems related to the budget or money including possible problem times. According to this, it is false a cash budget will not help identify possible problem times because is useful to predict problems related to money and time.

6 0
2 years ago
Read 2 more answers
Mark Johnson saves a fixed percentage of his salary at the end of each year. This year he saved $2,500. For each of the next 5 y
yarga [219]

Answer:

Mark will have at the end of six years the amount of $25,865.74

Explanation:

According to the given data we have the following:

First investment = 2500

Investment increasing at rate of 10%

Interest rate = 13%

t=6 years

Present value is given by formula = C * [((1+g)^n/(1+i)^n) - 1 ] / (g-i)

C is first value = 2,500

g is increase in investment = 0.10

i is intrest rate = 0.13

n is no of years = 6

Putting values into the equation

P = 2500* [((1+ 0.10)^6/(1+0.13)^6) - 1 ] / (0.10-0.13)  1.771561    2.08195

P = 2500* [((1.10)^6/(1.13)^6) - 1 ] / (-0.03)

P = 2500* [0.8509142870866 - 1 ] / (-0.03)

P = 2500* (-0.14908571)/ (-0.03)

P = 2500* 4.9695236

P=$12,423.809

Future value = P*(1+i)^t

= $12,423.809 *(1+0.13)^6

= $25,865.74

Mark will have at the end of six years the amount of $25,865.74

7 0
2 years ago
Read 2 more answers
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