Answer:
Descriptive
Explanation:
Descriptive headings are self-contained, which means that readers can skim through just the headings and subheadings and understand them without reading the rest of the document.
Descriptive headings highlights the important matter and main points of the content of the information and they are used to help readers to quickly spot the summary of the points to be communicated.
Furthermore, descriptive headings help readers find and understand information quickly which meets the required qualitative factors of the timeliness and comprehensibility of information.
Answer:
<u>86 payments approximately</u>
<em>Explanation</em>:
<u>First</u>;
Find the monthly average interest rate,
=7%/12
=0.0058333333
<u>Second</u>;
Add the monthly average interest rate to the monthly payment
= $175 + 0.0058333333
= $175.00583333 (average total monthly balance)
<u>Third</u>;
Divide final account balance by the average total monthly balance
= 15,000 / 175.00583333
=85.71 payments.
Answer: 7.12%
Explanation:
Effective Annual Interest rate is the nominal interest rate adjusted for the number of compounding periods a financial product will experience in a period of time.
To calculate the Effective Annual Rate one can use the following formula,
Effective Rate of Interest = (1+r/m)^m - 1
where r is the rate and
M is the no of compounding periods per year which in this case would be 2 because the payments are semi annual
Plugging in figures would give us,
Effective Rate of Interest = (1+0.07/2)^2 - 1
=0.0712
= 7.12%
If you need any clarification do comment or react.
Answer:
Discounted payback period = 1.89 years
Explanation:
If Initial cost is $5,200
Year Cash flow Present value Present value Discounted
at 11% Cumulative cash flow
0 -5,200 1 -5,200 -5,200
1 2,800 0.9009 2,523 -2,677
2 3,700 0.811 3,003 326
3 5,100 0.73126 3,729 4,055
4 4,300 0.6587 2,833 6,887
Discounted payback period = 1 + (2,667/3003)
=1.89 years
Working
PV= (1+i)^-n
i= 11%, n= respective years 0,1,2,3,4
<u>Explanation</u>:
i. Limited cash on hand to make changes
It is apparent from the case that the company is experiencing a drop in the sales from the past 5 years and thus, the financial reserves will be a constraint in the accomplishment of the idea.
ii. Costumers purchase lifestyle products from people who they know and who have expertise
It is the idea that the director of the company mark always encourages direct interaction with the clients and personal selling rather than retail or online sales considering personal relation makes exposure to the experts and their advice.
iii. Meet with mark, your direct supervisor, about how to establish your credibility with the owner
Being a newbie to the company, it is a wise option to follow the instructions of the reporting authority to establish rapport with the owner of the organization.
iv. Sales have declined because customers have lower disposable income
It is also evident from the case of the financial crisis and recession in going in the market due to which the customer has a lower income to make purchases.
v. Suggesting techniques to help our sales reps become more trusted advisors
It is the time to perform a forward step by the sales reps to take the role of the advisors i.e. trusted ones for the customer in recommending the best of all.
