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2 years ago

7

It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $

1,000. Assuming an interest rate of 4% year compounded monthly, determine the capitalized cost for maintaining the statue.

1 answer:

Over [174]2 years ago

3 0

Answer:

225558 jhdsyjnpgdsejnjide

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Huai takes out a $3,600 student loan at 6.6% to help him with 2 years of community college. After finishing the 2 years, he tran

Alja [10]

Answer:

a. The monthly payment on loan 1 is $76.03.

b. The monthly payment on loan 2 is $411.69.

Explanation:

a. Calculate the monthly payment on loan 1.

To determine the amount of periodic payments, the present value of annuity formula should be used:

$PV=P(\frac{1-(1+r)^{-n} }{r} )$

Where:

PV= present value

p=periodic payment

i=rate of interest

n=number of periods

We get the data for this exercise:

PV= 3,600 (loan).

p= unknown (we must find this value)

i= 6.6% or 0.066. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.066 / 12).

n= 4 years and 7 months, that is 55 months.

And we replace in the formula:

$3600=P(\frac{1-(1+\frac{0.066}{12})^{-55} }{\frac{0.066}{12} } )$

$3600=P(\frac{1-(1+0.055)^{-55} }{0.0055} )$

$3600=P(\frac{1-(0.7395812268)}{0.0055} )$

$3600=P(\frac{0.2604187732}{0.0055} )$

$3600=P(47.348867)$

Therefore:

$P=\frac{3600}{47.348867}$

$P=76.03$

The monthly payment on loan 1 is $76.03.

b. Calculate the monthly payment on loan 2.

We get the data for this exercise:

PV= 11,600 (loan 2).

p= unknown (we must find this value)

i= 7.3% or 0.073. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.073 / 12).

n= 2 years and 7 months, that is 31 months.

And we replace in the formula:

$11600=P(\frac{1-(1+\frac{0.073}{12})^{-31} }{\frac{0.073}{12} } )$

$11600=P(\frac{1-(1+0.006083)^{-31} }{0.006083} )$

$11600=P(\frac{1-(0.8286047296)}{0.006083} )$

$11600=P(\frac{0.1713952704}{0.006083} )$

$11600=P(28.1761088936)$

Therefore:

$P=\frac{11600}{28.1761088936}$

$P=411.69$

The monthly payment on loan 2 is $411.69.

8 0

2 years ago

Carlos drives to oregon to consult with a client. he works for 1 day and spends 3 days enjoying oregon since the consultation wa

Assoli18 [71]

Answer:

Explanation:

You are able to deduct expenses that are directly related to the business travel.

He can deduct the entire 175 for driving, since he would need to do that no matter if he stayed longer or not. Staying longer doesn't add any extra cost.

He can deduct lodging that covers the amount of time dedicated to business so of the 600 he can deduct 1/4 or $150 since only 1 of the 4 days was business related.

And the $50 for food for the day he spent on business

7 0

2 years ago

If the price level of what firms produce is rising across an economy, but the costs of production are constant, then:___________

Lerok [7]

Answer:

D. higher profits will induce expanded production.

Explanation:

If the price of a good increases and the cost remains the same ,profits earned would increase.

For example if price of a pen was initially $5 and rose to $7. The cost of making a pen is $3. Total profit would rise from $2 to $4.

According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the. quantity supplied. Therefore, the higher price would attract more producers and production would increase. Existing producers would also increase output.

I hope my answer helps you.

8 0

2 years ago

Which one of the following statements regarding the economic order quantity (EOQ) is true? a. If an order quantity is larger tha

Nata [24]

Answer:

yes

Explanation:

Because yes

6 0

2 years ago

Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in mechanical engineering and co

Artyom0805 [142]

Answer:

A. 27,000

B. 77,000

Explanation:

What is Reggie's accounting profit?

REVENUE - EXPENSES AND DEPRECIATION

90000-18000-6000-3000=63000

What is Reggie's economic profit?

REVENUE - EXPENSES AND DEPRECIATION - IMPLICIT COSTS

90000-18000-60000-3000-76000 = -13000

1) accounting profit = TR - explicit cost

= 90,000 - 63,000

= 27,000,

2) economic profit = TR - economic cost

= 90,000-(13,000)

= 77,000

3 0

2 years ago