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charle [14.2K]
2 years ago
8

Maria has a balance of $4,500 on her credit card with a 22% interest rate. How long will it take her balance to double?

Business
1 answer:
Makovka662 [10]2 years ago
3 0

The time required from simple interest on a principal of $4,500.00 at an interest rate of 22% per year is 4.55 years (about 4 years 7 months).

<h3>Simple Interest</h3>

Given Data

  • Principal =  $4,500
  • Interest = 22%
  • Final Amount = $4,500*2 = $9,000

Equation:

t = (1/r)(A/P - 1)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 22%/100 = 0.22 per year,

then, solving our equation

t = (1/0.22)((9000/4500) - 1) = 4.55

t = 4.55 years

Learn more about Simple Interest Here:

brainly.com/question/723406

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Campbell Transport Company divides its operations into four divisions. A recent income statement for its West Division follows.
Leona [35]

Answer:

Explanation:

1) Revenue  $540,000

less: Salaries for drivers  (390,000)

Fuel expense  (54,000)

insurance  (74,000)

Division line  (44,000)

Net loss  (22,000)

If division is eliminated the income would increase by $22,000

So it should be eliminated.

2) Decrease in income = $600,000 - ($540,000+$22,000)

= $38,000

3) What is the minimum amount of revenue required = 600,000 - 38,000 = $562,000

8 0
3 years ago
The cost-benefit principal states that
REY [17]

Cost-benefit principle would state that you would only take an action if the benefit outweighs the cost.

For example: It may cost me $5 to drive to work, but I make $50 for showing up, I would go because the benefit I get outweighs the cost and I am better off going than staying at home.

6 0
3 years ago
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ende
Paladinen [302]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the cost of goods sold:</u>

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 30,000 + 100,000 - 40,000

COGS= 90,000

<u>Now, the number of skis sold:</u>

Units sold= 150,000/750= 200 units

<u>Traditional income statement:</u>

Sales= 150,000

COGS= (90,000)

Gross profit= 60,000

Total selling expense= (50*200 + 20,000)= (30,000)

Total administrative expense= (10*200 + 20,000)= (22,000)

Net operating income= 8,000

<u>Contribution format income statement:</u>

Sales= 150,000

Total variable cost= (90,000 + 50*200 + 10*200)= (102,000)

Contribution margin= 48,000

Total fixed selling expense= (20,000)

Total fixed administrative expense= (20,000)

Net operating income= 8,000

4 0
3 years ago
Which type of organization uses the form 1065 and schedule k-1?
nekit [7.7K]
<span>Organizations known as Partnerships use the Form 1065 and Schedule K-1. A Partnership is an agreement between two partners to agree to work together to benefit each others interest. These organizations of Partnerships may be between individuals, governments, schools, etc.</span>
6 0
3 years ago
A company currently pays a dividend of $2.8 per share (D0 = $2.8). It is estimated that the company's dividend will grow at a ra
Vinil7 [7]

Answer:

Intrinsic value: 53.41 dollars

Explanation:

First, we use the CAPM model to know the value of the stock

Ke= r_f + \beta (r_m-r_f)  

risk free 0.085

premium market =(market rate - risk free) = 0.045

beta(non diversifiable risk) 1.3

Ke= 0.085 + 1.3 (0.045)  

Ke 0.14350

Now we need to know the present value of the future dividends:

D0 = 2.8

D1 = D0 x (1+g) = 2.8 * 1.23 = 3.444

D2 3.444 x 1.23 = 4.2361200

The next dividends, which are at perpetuity will we solve using the dividned grow model:

\frac{divends}{return-growth} = Intrinsic \: Value

In this case dividends will be:

4.23612 x 1.07 = 4.5326484

return will be how return given by CAPM and g = 7%

plug this into the Dividend grow model.

\frac{4.5326484}{0.1435 - 0.07} = Intrinsic \: Value

value of the dividends at perpetity: 61.6686857

FInally is important to note this values are calculate in their current year. We must bring them to present day using the present value of a lump sum:

\frac{Principal}{(1 + rate)^{time} } = PV

\frac{3.444}{(1 + 0.1435)^{1} } = PV

3.011805859

\frac{4.23612}{(1 + 0.1435)^{2} } = PV

3.239633762

\frac{61.6686857}{(1 + 0.1435)^{2}} = PV

47.16201531

We add them and get the value of the stock:

53.413455

5 0
3 years ago
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