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Schach [20]
3 years ago
7

The annual interest rate on a credit card is 13.99​%. If a payment of ​$400.00 is made each​ month, how many months will it take

to pay off an unpaid balance of ​$2 comma 455.44​? Assume that no new purchases are made with the credit card.
Business
1 answer:
romanna [79]3 years ago
5 0

Answer:

There will be 7 months of repayment for fully paying-off the outstanding amount.

Explanation:

We apply the present value formula to calculate the number of month it takes to paid off the outstanding amount.

We have:

Monthly payment = $400; Discounting period = number of months needs to paid off the amount; Discount rate = 13.99%/12

So, we have: 2,455.44 = [400/(13.99%/12)] x [1 - (1+13.99%/12)^(-n)] <=> [1 - (1+13.99%/12)^(-n)] = 0.071566 <=> (1+13.99%/12)^(-n) = 0.928434 =  <=> n = 6.4

=> There will be 7 months of repayment for fully paying-off the outstanding amount.

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A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50
34kurt

Answer:

Company should continue with old machine (Alternative 1)

Explanation:

Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

DIFFERENTIAL ANALYSIS

Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income

REVENUES

Proceeds from sale of machine

$0 $50500 $50500

COSTS

Purchase price $0 -$75000 -$75000

Direct labor -$56000 -$37000 19000

(11200*5 = -56000)

(7400*5 = -37000)

Income (loss) -$56000 -$61500 -$5500

Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)

6 0
3 years ago
when a manufacturer saturates the market by selling to any intermediary of good financial standing that is willing to stock and
Luda [366]

When a manufacturer saturates the market, the manufacturer is engaging in  intensive distribution.

Intensive distribution can be define as the way in which companies or manufacturer made available or distribute their products from retail outlet to wholesaler outlet.

Most companies use intensive distribution marketing strategy  to increase sales and to sell out the products in their warehouse so as to restock or restore new products.

Intensive distribution help to create product awareness to those people that are not aware of the products due to the fact that the products can be find everywhere.

Inconclusion  the manufacturer is engaging in  intensive distribution.

Learn more about intensive distribution here:

brainly.com/question/24250512

4 0
3 years ago
What is the main challenge of career planning in changing times?
White raven [17]

The answer is option B. The main challenge of career planning in changing times is that you need to revise your plans often.

The world we live in is dynamic. New inventions, new technology, new methods of doing things always come up with time.

Because of this, when making a career plan, one must be fully aware that the process is not static. That is, changes would occur and as such, you have to revise your plans often so that it is in line with what is obtainable at the time.

<em>Read more on career planning here: brainly.com/question/6457203?referrer=searchResults</em>

5 0
3 years ago
Macroeconomic analysis is concerned with: Group of answer choices government regulation of industry The structure of a market an
Zanzabum

Answer:

The answer is C.

Explanation:

Macroeconomics is the study of the economy as a whole, unlike microeconomics which is the study of the individual firms/markets.

Macroeconomics focuses on the standard of living, unemployment rate, inflation rate etc. and how this affects the whole economy.

Option A is wrong because it is the microeconomics and not macroeconomics that studies the market and the firm.

Option B and D are wrong because these are for microeconomics

8 0
3 years ago
Susan saved $5000 per year in her retirement account for 10 years (during age 25-35) and then quit saving. However, she did not
sladkih [1.3K]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Susan:

Annual deposit= $5,000 for 10 years

Lumo-sum for 30 years

Interest rate= 8.5%

Jane:

Annual deposit= $5,000 for 30 years.

<u>First, we will calculate the future value of Susan:</u>

<u></u>

First 10 years:

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

A= annual deposit

FV= {5,000*[(1.085^10)-1]}/0.085

FV= $74,175.50

Last 30 years:

FV= PV*(1+i)^n

FV= 74,175.50*(1.085^30)

FV= $857,050.14

<u>Jane:</u>

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

A= annual deposit

FV= {5,000*[(1.085^30)-1]}/0.085

FV= $621,073.63

<u>Earnings difference= 857,050.14 - 621,073.63= $235,976.51 in favor of Susan.</u>

8 0
3 years ago
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