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romanna [79]
3 years ago
9

The musical instrument store estimates costs of $18,750.00 annually to carry inventory of musical instruments and accessories. t

he costs include 12% for storage, 12% for interest, and 5% for transportation. what is the value of the inventory to the nearest cent?
Business
1 answer:
guapka [62]3 years ago
6 0
To find the value of the inventory to the nearest cent: 
Estimated costs are: $18,750
Storage costs: 12%
Interest costs: 12%
Transportation costs: 5%
Let's add the costs up: 12% + 12% + 5% = 29%  

We are solving for the value of inventory so in this case we will make that X.
X = estimated costs/interest amounts 
X = $18,750/29% 
X = $18,750/0.29
X = $64,655.17

The value of the inventory is $64,655.17

To check your work you can take $64,655.17 and multiply it by 29%
= $18,750
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