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dangina [55]
3 years ago
14

Industrial tools owes you $38,600. this amount is seriously delinquent so you have offered to accept weekly payments for one yea

r at an interest rate of 3 percent to settle this debt in full. what is the amount of each payment?
Business
1 answer:
lesantik [10]3 years ago
3 0
The problem could be solved by using the future value (FV) formula: FV = PV × (1 + r)ⁿ, where;
PV = Present value
r = interest rate
n period

So, substituting the formula with the value:

FV = $38,600 × (1 + (.03÷52))⁵²
     ≈ $39,775.20

Note that the interest is divided by 52 since it has to be compounded weekly.

So, the weekly payment will amount to $764.91 ($39,775.20÷52).
You might be interested in
Which of the following is false? Economists who advocate discretionary monetary policy argue that it is more likely to achieve t
just olya [345]

Answer: None of the above

Explanation:

All of the above are correct.

For option A, Economists who advocate discretionary monetary policy do indeed believe that the monetary authority using this policy is more flexible to shape the best monetary policy to the existing circumstances.

Option B is also correct because Crowding out occurs when the government increases investment by borrowing which leaves less money for the private sector to borrow so they spend less. The government spent money here yet the private sector did not spend less so it is Zero Crowing out.

Option C by option B's explanation holds true because the entire amount the Government increased by was denied the private sector.

Option D is also true as not all Economists prefer rule-based monetary policy to discretionary monetary policy.

They are all true.

3 0
3 years ago
The 2016 financial statements of Leggett & Platt, Inc. include the following information in a footnote. What are the company
nalin [4]

Answer:

$493.8

Explanation:

Since the 2016 financial statements of Leggett & Platt, Inc. includes the following information in a footnote.  (in millions) 2016 2015 Allowance for doubtful accounts $ 7.2 $ 9.3 Total accounts and other receivables, net $486.6 $520.2

Therefore the company’s current gross accounts and other receivables at the end of 2016 is

Net Total accounts and other receivables, net $486.6

Allowance for doubtful accounts ..........................<u>...$ 7.2</u>

Gross accounts and other receivables................<u>$493.8</u>

<u>The gross accounts and other receivables will be the amounts before making any allowances for doubtful accounts</u>

3 0
3 years ago
Delta Company produces a single product. The cost of producing and selling a single unit of the product at the company’snormal a
iogann1982 [59]

I assumed you typo 821 by $21 per unit, then the answer will be

1-  financial disadvantage of accepting the special order is loss of $60,000

2- a minimum selling price for these units should be $14.00

Explanation:

Loss of $60,000 = 15,000 x (14,000 – (5.1+3.8+1+4.2+1.5+2.4))

a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

6 0
3 years ago
. A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year, but is providin
Anit [1.1K]

Answer: $17.28

Explanation:

6 month free concession in first year drops rent to:

= 20 / 2

= $10

Effective rent = [Present value of Year 1 rent + Present value of Year 2 rent + Present value of Year 3 rent ] / [ 1 - (1 / (1 + rate)^ number of years) / rate]

= [(10 / (1 + 10%) ) + (21 / (1 + 10%)²) + (22 / (1 + 10%)³)] * [1 - (1 / (1 + 10%)³/ 10%)]

= (9.09 + 17.355 + 16.5289) / 2.48685

= $17.28

8 0
2 years ago
Carla Vista Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Balt
tatuchka [14]

Answer:

The present Value of the growing annuity= $1,158,092.68  

Explanation:

The present value of the growing annuity is going to be computed as follows:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow- $87,460

g- growth rate - 6.3%

n- number of years =73

r- discount rate - 13.8%

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity  as follows.  

A/(r-g)  = 87,460/(0.138-0.063) =1,166,133.33

(1- (1+g/1+r)^n)  = 1- (1.063/1.138)^73 =0.9931

PV = A/(r-g) × (1- (1+g/1+r)^n)

166,133.33× 0.9931 =  1,158,092.68  

The present Value of the growing annuity= $1,158,092.68  

6 0
3 years ago
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