1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Klio2033 [76]
3 years ago
7

The government imposed a fine on the Not-So-Legal Company. The fine calls for a payment of $100,000 today, $150,000 one year fro

m today, and $200,000 two years from today. The government will hold the funds until the final payment is collected and then donate the entire amount to charity. The government has agreed to pay annual interest of 3 percent on the held funds. How much will be donated to charity in two years?
Business
1 answer:
belka [17]3 years ago
8 0

Answer:

The amount after 2 years will be $460590

Explanation:

The payment which is done 2 year from today = $200000

The payment which is done one year from today = $150000

Rate of interest = 3 %

So the amount after 1 year

A=P(1+\frac{r}{100})^n=150000(1+\frac{3}{100})^1=$154500

The amount which is done today = $100000

So amount after 2 years

A=P(1+\frac{r}{100})^n=100000(1+\frac{3}{100})^2=$106090

So total amount after 2 years = $106090+$154500+$200000 = $460590

You might be interested in
One of the costs listed below is an opportunity cost. identify this cost.
Brut [27]
Each one is a opportunity cost because you can only pick one and you cant get the other because one is more scarce than the rest. Nothing is free you gave up the rest of the choices to pick one choice which suited your self interest best
6 0
3 years ago
All of the following are examples of mixed economies EXCEPT
EastWind [94]

Answer:

in socialist France, the French government owns the postal service industry.

Explanation:

A mixed economy combines elements of a pure socialists (command) economy and a  capitalist (free market )economy.  A socialist economy is where the government controls all economic activities and decisions in a country. The private sector is absent in a socialist economy.  A  capitalist or free-market economy is one where the government does not interfere with a country's economic activities. The private sector does production and distribution in the economy.

A mixed economy will have traits of socialists and a capitalist economy. Both the government and private sector participates in economic activities.

7 0
3 years ago
IMB Corporation recently reported an EBITDA of $22.5 million and $5.4 million of net income. The company has $6 million interest
Mandarinka [93]

Answer:

$8.2 million

Explanation:

As per given data

EBITDA         $22.5

Net Income    $5.4 Million

Interest Expense = $6 million

Tax rate = 35%

As we know the Tax is deducted from the income before tax to calculate the net income. We will calculate the Earning before tax first.

EBT = Net Income x 100% / ( 100% - 35% )

EBT = 5.4 million x 100% / 65%

EBT = $8.3 million

Now we need to calculate the Earning Before interest and Tax

EBIT = EBT + Tax Expense = $8.3 million + $6 million = $14.3 million

The Difference between EBIT and EBITDA is depreciation and amortization expense.

Depreciation and Amortization expense = EBITDA - EBIT = $22.5 million - $14.3 million = $8.2 million

3 0
2 years ago
"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o
JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

Download docx
7 0
3 years ago
Blue Ridge Crafters is a co-operative that distributes traditional household furnishings, such as home-spun textiles, hand-throw
Harman [31]

Answer:

C) Horizontal growth strategy.

Explanation:

In the given situation, blue ridge would added non related products for the customers who already purchased it from them. Also it shows the concept of one-stop shop i.e. catering should be provided to all rounds requirement for the customers who visited them

Therefore as per the given scenario, the option c is correct

And, the same would be considered

5 0
3 years ago
Other questions:
  • Which ocean resource is currently not economically profitable to mine? gravel sand manganese nodules salt?
    7·2 answers
  • Quillpen Company is unlevered and has a value of $45 billion. An otherwise identical but levered firm finances 25% of its capita
    13·1 answer
  • 1. Assume that Bob Burn, a CEO of Global Foods, Inc. asks his board of directors to approve a decision to enter the soft drink b
    9·1 answer
  • The art of getting the greatest benefit from limited financial resources is called A. inflation. B. financial management. C. mar
    7·1 answer
  • Socially responsible funds are distinguished from other mutual funds because they do not charge any sales commission or manageme
    13·1 answer
  • Suppose group price discrimination is possible but a firm chooses not to and sets the same price in each market. As a result Sel
    6·1 answer
  • Leaders:
    11·1 answer
  • CompuGlobal is an American firm producing computers. CompuGlobal imports computer components from Taiwan and assembles them dome
    5·1 answer
  • Which of the following is an example of an adjusting entry
    11·1 answer
  • With a tax of $4,000 on $20,000 of
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!