Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be
1 answer:
Answer:
$5,178.09
Explanation:
Data provided in the question:
Principle amount, P = $5,000
Interest rate, r = 5.25%
Duration, t = 8 months = years = 0.67 years
Now,
A =
Here,
A = total amount
P = principal or amount of money deposited,
n = number of times compounded per year i.e 365 for daily
t = time in years
Thus,
A = $5,000 ×
= $5,000 ×
= $5,000 × 1.035618
= $5,178.09
Hence,
the correct answer is option $5,178.09
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Answer:
In order to maximize average daily profit, optimal number of reservations = 100 rooms.
Explanation:
As for the provided information, we have
Total number of rooms = 100
Chances of guests not arriving = 5%
Therefore, guests to arrive = 95%
Thus, bookings = 100/95% = 105.26
Rounding off we have 105 rooms,
Let us assume, all rooms are booked and no cancellation is done, in that case,
Total revenue = $150 100 = $15,000
Less: Overbooked charges = $200 5 = ($1,000)
Less: Variable Cost = $30 100 = ($3,000)
Thus total revenue will be $11,000
In case of booking of 100 rooms the net revenue in case of 5% cancellations, shall be:
Rooms booked = 100 - 5% = 95
Revenue = 95 $150 = $14,250
Less: Variable Costs = 95 $30 = ($2,850)
Thus total revenue = $11,400
Since profit in case of booking 100 rooms is more in any case, even in case of least cancellation the revenue will increase.
Thus, this is the optimal number of reservations = 100
Answer:
The current ration for 2018 will be "1.55".
Explanation:
The given values are:
The total current assets of 2018 is:
= $310,000
The total current liabilities of 2018 is:
= $200,000
Now,
The current ratio of 2018 will be:
=
On substituting the estimated values in the above formula, we get
=
=