The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered
1 answer:
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<em>Question Continuation</em>
<em>The probability that a respondent read a book in the last month and is at least 30 years old is the closest to </em>
<em> A. 0.33 </em>
<em> B. 0.88 </em>
<em> C. 0.46 </em>
<em> D. 0.12 </em>
<em>See Attachment for complete question </em>
Answer:
A. 0.33
Explanation:
To solve this question, we need the intersecting cell of Yes and 30+
The probability is then calculated as follows:
Where Total = 200
From the list of given options; (A) is the closest to 0.325
Hence:
<em>Option A answers the question</em>
Answer:
Goal: maximize return at the end of the fourth year.
Future value of each option:
First choise: $ 11,730,289.64
Second choise: $ 12,559,457.84
<em>Conclusion: </em>
<em>It is better to pick the second option as yields a better return </em>
Explanation:
We solve for the future value of the cashflow of each option:
First choise:
End of the first year:
Principal 2,000,000.00
time 36.00 (form end of the first to end of the fourth)
rate 0.00917 (11% / 12 months as it compounds monthly)
<em>Amount $2,777,757.26</em>
End of the second year:
Principal 2,000,000.00
time 24.00
rate 0.00917
<em>Amount $2,489,657.04</em>
<em>End of the third year:</em>
Principal 4,000,000.00
time 12.00
rate 0.00917
<em>Amount $4,462,875.34</em>
End of the fourth year: $2,000,000
Total:
<em>$2,777,757.26</em>
<em>$2,489,657.04</em>
<em>$4,462,875.34 </em>
<u>$2,000,000 </u>
$ 11,730,289.64
<u>Second choise:</u>
First year
Principal 1,000,000.00
time 36.00
rate 0.00917
Amount 1,388,878.63
Second year:
Principal 1,000,000.00
time 24.00
rate 0.00917
Amount 1,244,828.52
Third Year
Principal 8,000,000.00
time 12.00
rate 0.00917
Amount 8,925,750.69
Fourth year: 1,000,000
<em>Total</em>
1,388,878.63
1,244,828.52
8,925,750.69
<u>1,000,000.00 </u>
12,559,457.84
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