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Snezhnost [94]
3 years ago
6

You have been pricing an MP3 player in several stores. Three stores have the identical price of $500. Each store charges 24 perc

ent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C uses the previous balance method. Assume you purchased the MP3 player on May 5 and made a $100 payment on June 15.
Business
1 answer:
Alja [10]3 years ago
3 0

Answer:

Store A = $9

Store B = $8

Store C = $10

Explanation:

Finance charges calculated by average daily balance finance charges basis, adjusted balance method finance charges basis and Previous Balance Method Finance Charge basis is calculated as follows

Store A:

Average Daily Balance Finance Charge basis = ($500 + $400) /2

Average Daily Balance Finance Charge basis = $450

Finance Charges = $450 x (24% / 12)

Finance Charges = $9

Store B:

Adjusted Balance Method Finance Charge basis = $500 - $100

Adjusted Balance Method Finance Charge basis = $400

Finance Charges = $400 x (24% / 12)

Finance Charges = $8

Store C:

Previous Balance Method Finance Charge basis = $500 - $0

Previous Balance Method Finance Charge basis = $800

Finance Charges = $500 x (24% / 12)

Finance Charges = $10

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Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. What is the rate of return on the
damaskus [11]

Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. 9.60% is the rate of return on the trust fund.

FV =  Future Value

PV =  Present Value

r =  rate of interest

n=  no of period

   

FV/ PV =  (1 + r )^n

5000/2000   =  (1 + r%)^10

2.5 = (1 + r%)^10

r = 9.60%.

The rate of return is the net profit or loss of an investment over a period of time, expressed as a percentage of the original cost of the investment. 1 When calculating the rate of return, find the percentage change from the beginning of the period to the end of the period.

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7 0
2 years ago
Kouba Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.52 direct labor-
Anvisha [2.4K]

Answer:

Kouba Corporation

Direct labor budget for April and May:

                                                         April           May

Production in units                         1,700          1,600

Direct labor-hours per unit             0.52           0.52

Total direct labor-hours needed     884             832

Total direct labor-hours paid          960             960

Direct labor rate                           $9.00          $9.00

Total direct labor cost                $8,640        $8,640

Explanation:

a) Data and Calculations:

                                                          April           May

Production in units                         1,700          1,600

Direct labor-hours per unit             0.52           0.52

Total direct labor-hours needed     884             832

Total direct labor-hours paid          960             960

Direct labor rate                           $9.00          $9.00

Total direct labor cost                $8,640        $8,640

Idle hours paid for                              76              128

Cost for idle hours                        $684          $1,152

b) The Kouba Corporation pays its workers for a total of 204 idle hours with a total cost of $1,836 for the two months period.  This amount is substantial, about 10% of the total amount paid for the two months.

6 0
3 years ago
You are given the following information for Sookie's Cookies Co.: sales = $51,200; costs = $39,600; addition to retained earning
ipn [44]

Answer:

The depreciation expense for the company is $4615.

Explanation:

profit before depreciation and tax = (sales - cost) - interest expense

= ($51,200  - $39,600)  - $1,560  

= $10040

Addition to retained earnings = $2,320

dividends paid = $935

tax rate = 40 percent.

Addition to retained earnings = [(Profit before depreciation and tax - depreciation expense ) * (1- Tax)] - dividend paid

$2320 = [($10040 - depreciation expense)* (1 - 0.40)] - 935

$3255 = ($10040 - depreciation expense)* 0.60

$5425 = $10040 - depreciation expense

Depreciation expense = 10040 - 5425

                                      = $4615

Therefore, The depreciation expense for the company is $4615.

5 0
3 years ago
What is the meaning of <br>Accountant​
melisa1 [442]

Answer:

An accountant is someone who keeps or examines the records of money received, paid, and owed by a company or person.

Explanation:

To be a good accountant you need to earn the Right Degree. Although not required, most accountants attend college and earn a bachelor's degree.  

You also have to pick a Specialty. Virtually all accountants and CPAs specialize in one or more areas of practice.  

Eventually you will have to decide between being an accountant or CPA. .

If you want to be a CPA you will need to pass CPA Exam.

5 0
3 years ago
Southern Wear stock has an expected return of 15.1 percent. The stock is expected to lose 8 percent in a recession and earn 18 p
Scilla [17]

Answer:

15.26%

Explanation:

Let the expected return if economy is normal be X

Expected return ; E(R) = SUM(probability. *return)

E(R) =15.1% OR 0.151 as a decimal

RECESSION: (probability. *return) = -0.08 * 0.02 = -0.0016

NORMAL: (probability. *return) = 0.87 *X = 0.87X

BOOM: (probability. *return) = 0.11 *0.18 = 0.0198

Next, sum the three returns and equate them to 0.151;

-0.0016 + 0.87X + 0.0198 = 0.151

0.87X + 0.0182 = 0.151

Subtract 0.0182 from both sides;

0.87X = 0.151 - 0.0182

0.87X = 0.1328

Divide both sides by 0.87 to solve for X;

X = 0.1526 as a decimal or 15.26%

Therefore, expected return if economy is normal is 15.26%

3 0
3 years ago
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