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valentina_108 [34]
3 years ago
8

Framing Art Inc. will need to purchase two new cashier machines in 2 years, at a cost of $148 each. A savings account pays 2% pe

r year compounded quarterly. How much should Framing Art Inc. deposit now in this account to have the cash available in 2 years to pay cash for both machines
Business
1 answer:
Oksana_A [137]3 years ago
6 0

Answer:

Farming Art Inc. should deposit $284.42

Explanation:

Giving the following information:

Framing Art Inc. will need to purchase two new cashier machines in 2 years, for $148 each. A savings account pays 2% per year compounded quarterly.

Total cost=148*2= $296

To calculate the monetary value to deposit today, we need to use the following formula:

PV= FV/(1+i)^n

FV= 296

i= 0.02/4= 0.005

n=2*4= 8

PV= 296/1.005^8= $284.42

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Answer:

54,075 Payment at Year 3

Explanation:

Because is an interest-only loan:

It will pay the principal completely and the interest for the year.

principal x rate = interest paid

50,000 x 0.0815 = 4,075

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54,075 Payment at Year 3

<u>Remember:</u>

interes-only loan means during the life of the loan the monthly or annual payment are for the interest. At maturity, the principal is fully paid.

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3 years ago
Mikan Company’s standard predetermined overhead rate is $9 per direct labor hour. For the month of June, 26,000 actual hours wer
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Answer:

Allocated MOH= $234,000

Explanation:

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Actual direct labor hours= 26,000

<u>To allocate manufacturing overhead, we need to use the following formula:</u>

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Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

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5 0
3 years ago
In the context of consumer behavior (CB), researchers derive meaning from talking to people and observing their behavior rather
Mariulka [41]

Answer:

The correct answer is (b)

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3 years ago
Sony has sold the same number of television sets each month for almost a year. However, in one month that number suddenly double
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Answer:

C. Reduced prices of Sony televisions resulted in an increase in the quantity demanded.

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2 years ago
The consumer decision making process is comprised of these five steps: Need recognition, Environmental Scanning, Evaluation of a
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Answer:

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