Answer: option A is the correct option.
Cash price = 106.00
Explanation:
Cash price = quoted price + accrued interest
CP = Qp + I ..........................(1)
Quoted price = 105
Accrued interest = ?
STEP1 : FIND INTEREST;
Because the interest is not compounded
Accrued Interest = PRT ..........(2)
P= principal ( the face value)
R = rate per annum
T= period
P= 100
Since the period of payment of the face value was from April 1 to October 1 that means the period is 180 days, that means the 12% rate per annum (360 days), should be 6% rate per halve annum (180 days).
Therefore;
R = 6%
Since rate is applied every 30 days of the period which is 30/360 for an annum. Our period is 180 that's means rate will be applied to 30/180.
Therefore;
T = 30/180
Therefore using equation 2
I = 100 × 6% × (30/180) = 1.00
Accrued interest= 1.00
STEP 2: FIND CASH PRICE
using equation 1
Cash price = 105 + 1.00 = 106.00
Answer:
Explanation:
Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the top priorities for the organization.
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Answer:
The average operating cost is $0.46 per mile
In deciding whether to to her use her own car or rent a car the costs are analysed below:
Variable operating cost is a relevant cost
Depreciation is not relevant as it is already cost and also it is sunk cost
insurance is not relevant as well
automobile tax and license is not relevant as it would be paid regardless of the option chosen
Explanation:
The average cost comprises of the variable operating cost per mile as well as the fixed operating cost per mile
variable operating cost per mile is $0.06
fixed cost operating cost=fixed costs/total miles driven=($3,350+$1,700+$900+$450)/16000=$6400
/16000=$0.40
average cost per mile=$0.06+$0.40=$0.46
