Answer:
with the new rate we will pay in 58 months.
if there is 2% commision charge: 59.35 = 60 months
Explanation:
Currently we owe 10,000
This will be transfer to a new credit card with a rate of 6.2%
We are going to do monthly payment of 200 dollars each month
and we need to know the time it will take to pay the loan:
We use the formula for ordinary annuity and solve for time:
C $200.00
time n
rate 0.005166667 (6.2% rate divide into 12 months)
PV $10,000.0000
We arrenge the formula and solve as muhc as we can:
Now, we use logarithmics properties to solve for time:
-57.99227477 = 58 months
part B
If there is a charge of 2% then Principal = 10,000 x 102% = 10,200
we use that in the formula and solve:
-59.34880001 = 59.35 months
Answer:
Cost of Goods Sold for the month is $1656
Explanation:
Weighted Average Cost System calculates a new average for goods after each purchase.
Mountain Made Inventory Balance runs as follows:
<u>At Beginning:</u>
(3 quilts × $200) = $600
<u>After Purchased of 7 additional quilts for $210 each:</u>
(3 quilts × $200) + (7 quilts × $210) = $2070
New Inventory Cost = $2070/10quilts =$207 each
<u>At end</u>
2 quilts remained unsold. Therefore sold quilts were 8 ie (10quilts-2quilts)
Therefore cost of sold quilts is 8 × $207 = $1656
The law of increasing opportunity costs is reflected in a production possibilities curve that is concave to the origin.
The answer is D.
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