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dsp73
3 years ago
9

Sally’s parents deposited $15,000 into a college savings account on her third birthday. The account had an interest rate of 9.6%

compounded annually. They were hoping that the money would double twice by the time she was 18 years old. Using the rule of 72, will their hopes come true? Yes, the $15,000 will double each 7.5 years. In 15 years, it will double twice. Yes, the $15,000 will double in 7.5 years and be four times as much in 15 years. No, the $15,000 will only double once in 15 years, not double twice. No, it will take 30 years for the $15,000 to double twice.
Business
2 answers:
kozerog [31]3 years ago
7 0

Answer:

The correct option is yes,the $15,000 will double each 7.5 years.In 15 years ,it will double twice.

Explanation:

The 72 rule stipulates that the number of years it would take an investment to achieve accumulate a certain amount- future value, can be computed by dividing 72 by the interest rate earns by the investment

N, the number of years=72/9.6

                                      =7.5 years

Invariably,in 7.5 years' when Sally would have been 10.5 years(3 years now+7.5 years) the investment would have doubled.

By another 7.5 years when Sally would have been 18 years(10.5 years +7.5 years), the investment would have doubled twice.

The 72 rule is fast-track approach to calculating the duration of an investment.

SVETLANKA909090 [29]3 years ago
6 0

Answer:

Yes, the $15,000 will double each 7.5 years. In 15 years, it will double twice.

Explanation:

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Answer:

Instructions are listed below

Explanation:

Giving the following information:

The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.

Mountain has recorded the following for the past nine months:

January:

Number of Cavities= 375

Total cost= $5,300

February:

Number of Cavities  500

TC= 5,850

March

Number of Cavities 350

TC= 5,200

April

Number of Cavities 600

TC=6,250

May

Number of Cavities 325

TC= 5,150

June

Number of Cavities 475

TC= 5,700

July

Number of Cavities 525

TC= 6,100

August

Number of Cavities  575

TC= 6,300

September

Number of Cavities  450

TC= 5,550

A) Variable cost= (Highest activity cost - lowest activity cost) / (Highest activity units - lowest activity units)

Variable cost= (6300 - 5150) / (600 - 325)= 4.18 per unit

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B)  Q= 400

Total cost= 3792 + 4.18*400= $5464

8 0
3 years ago
During its first year of operations, mack's plumbing supply co. had sales of $630,000, wrote off $10,100 of accounts as uncollec
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3 years ago
The University of Dental Health (UDH) is a state-run university focusing on the education and training of dentists, dental assis
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Answer:

The University of Dental Health (UDH)

Functions                                           Type of Center

Accounting                                         Cost Center

Bookstore                                           Profit Center

Cafeterias                                           Profit Center

Career services                                  Cost Center

Community workshops                      Profit Center

(providing

continuing professional

education necessary for

state licensure)

Custodial services                              Cost Center

Financial aid                                        Cost Center

Human resources                              Cost Center

Information technology                     Cost Center

Residence halls                                  Profit Center

Student parking lots (fee based)      Profit Center

University newspaper/radio station Cost Center

Explanation:

The UDH's cost center is a department or function that does not directly contribute to its profitability but costs it money to operate its activities. A profit center, on the other hand, directly contributes to the University's profitability by generating revenue through its activities.  Please, note that the dividing line is thin.  The determinant factor depends on the choices and efforts made by an organization's management to commercialize some of its internal services.

3 0
3 years ago
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5 0
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Read 2 more answers
Estimating Allowance for Doubtful Accounts
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Answer:

Allowance for doubtful accounts    $ 106106 using the aging method

Explanation:  

<u>Evers Industries </u>

<u>Estimate of Allowance for Doubtful Accounts </u>

                          Balance         Not Past    Past Due  (days)

                                                    Due          (1-30)   (31-60)   (61-90)  (Over 90)

Total

Receivables        1,124,500   607,400   233,000  121600   96500   66000

Percentage

<u>Uncollectible                            1%             3%           12%         30%      75%     </u>

Allowance for                         6074          6990      14592     28950  49500

doubtful accounts    106106

<em>We multiply each percent with the amount given and then add them all to get the total which is $106106 based on aging method.</em>

5 0
3 years ago
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