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
rosijanka [135]
2 years ago
13

A certain company has purchased new swivel chairs for its employees. The company made the purchase on a credit plan at Buy Right

. Their monthly payments are $1,000 for 2 years. Buy Right will charge 3.45% per year compounded monthly. How much was the original total price of the furniture?
Business
1 answer:
Digiron [165]2 years ago
5 0

Answer:

Original price= $23,158.58

Explanation:

Giving the following information:

The company purchased a credit plan at Buy Right. Their monthly payments are $1,000 for 2 years. Buy Right will charge 3.45% per year compounded monthly.

First, we need to calculate the final value, using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly pay= 1,000

i= 0.0345/12= 0.002875

n= 12*2= 24

FV= {1,000*[(1.002875^24) - 1]}/ 0.002875

FV= $24,810.48

Now, we can calculate the original price:

PV= FV/(1+i)^n

PV= 24,810.48/ (1.002875^24)

PV= $23,158.58

You might be interested in
Can we treat all small businesses the same? Why or Why not?
Pepsi [2]

Answer:

Depends on what you define as small business, if you mean a mom and pop pharmaceutical store across the road that keeps the money within the family and has every member of the family working in the shop to create an infinite amount of revenue for themselves until they hit a profit, then sure. They contribute tax dollars to the community through supplying jobs and creating cheaper cost for locals, which gives incentive to buy more in bulk and thus creating more tax dollars. Unless you are talking about the man in the apartment building who makes home grade meals and sells them cheap to his community, then no. While he is contributing tax dollars all those dollars aren't going back into the community until he buys something with that money, and the people who spent that money just got  a tax free meal that 't go into the community didn't.

Explanation:

7 0
2 years ago
Where were the critical ww1 battles fought​
alekssr [168]

Answer:

It's Frence.

city of Verdun-sur-Meuse in northeast France

3 0
3 years ago
Why would expanding the nation’s communications network be considered an increase in wealth, while improving the education of it
larisa86 [58]
To be honest i think that it is because the internet contains everythingnyou need to know. And it is also much more easy to use. Hope this helps!
4 0
3 years ago
12. Describe an alternative investment that you might invest in someday, and explain why this investment is appealing to you
Ivenika [448]
I would invest in building my own house. This is appealing to me because I want  to raise a family in a nice house that I have built. 
4 0
3 years ago
Read 2 more answers
Suppose you forecast that the standard deviation of the market return will be 20% in the coming year. If the measure of risk ave
enyata [817]

Answer:

a) 16%

b) 2.25

c) Increase in expected market risk premium

Explanation:

Expected standard deviation of market return = 20%

measure of risk aversion ( A ) = 4

a) Determine a reasonable  expected market risk premium

= A * ( std ) ^2

= 4 * ( 20%)^2

=  16%

b) determine Value of A

market risk premium = A * ( std )^2

∴ A = 9% / ( 20% ) ^2

      = 0.09 / 0.04

      = 2.25

c) If investors become more risk tolerant the expected market risk premium will increase

7 0
2 years ago
Other questions:
  • What does it mean to have liability for a company
    11·2 answers
  • Dextra Computing sells merchandise for $15,000 cash on September 30 (cost of merchandise is $12,000). The sales tax law requires
    15·1 answer
  • A monopoly A. ​doesn't lose any sales when it raises its price. B. is a price taker. C. produces the market output. D. must have
    7·1 answer
  • 6. What do you need to know before you make a speech?
    12·1 answer
  • Suppose you own a proprietorship that is in serious financial difficulty. The assets of the company are $100,000, but liabilitie
    13·1 answer
  • X Y and Z are partners sharing profit in the ratio of 2 by 3 ratio 1 by 4 ratio 1 by 12 calculate the new ratio if x retires ​
    8·1 answer
  • ound Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan
    14·1 answer
  • Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has alw
    9·1 answer
  • Which option identifies the component of the SMART objective (specific, measurable, attainable, realistic, and time-bound) missi
    5·1 answer
  • 33. This question refers to the videos we watched about the “Crisis of Credit.” 1. Before 2008, why did investment bankers think
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!