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Nadya [2.5K]
3 years ago
11

The Flores Family loves to go sailing on the weekends. Mr. Flores has decided to purchase a more spacious sailboat. The sailboat

he is interested in buying in 4 years will cost him $20,000. An account at Invest Well Bank earns 6% per year compounded monthly. How much should Mr. Flores deposit in this account at the beginning of each month to be able to pay cash for the sailboat in 4 years?
Business
1 answer:
zavuch27 [327]3 years ago
8 0

Answer:

$367.86

Explanation:

To calculate this, we use the formula for calculating future value annuity (FVA) due as follows:

FV = M × {[(1 + r)^n - 1] ÷ r} × (1 + r) ................................. (1)

Where,

FV = Future value of an annuity or the cost of sailboat =  $20,000

M = Amount of each annuity  or to deposit monthly = ?

r = Monthly interest rate  = 0.06 ÷ 12 = 0.005

n = number of months = 4 years × 12 = 48

Substituting the values into equation (1), we have:

20,000 = M × {[(1 + 0.005)^48 - 1] ÷ 0.005} × (1 + 0.005)

20,000 = M × 54.3683213801713  

Making M the subject of the formula and solve, we have:

M = 20,000 ÷ 54.3683213801713  = $367.86

Therefore, Mr. Flores should deposit $367.86 in this account at the beginning of each month to be able to pay cash for the sailboat in 4 years.

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A woman worked for 30 years before retiring. At the end of the first year of employment she deposited 5000 into an account for h
Mrrafil [7]

Answer:

$797,837

Explanation:

the first withdrawal is $50,000

the second is $51,500

and so on...

the formula that used to solve the interest rate earned by the annuity is:

$50,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / [(1 + i)³⁰ x (i - 3%)]} x (1 + i) = $5,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}

we start to simplify the equation by cancelling  {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}

[$50,000 x (1 + i)] / (1 + i)³⁰ = $5,000

now we cancel $5,000 on each side:

[10 x (1 + i)] / (1 + i)³⁰ = 1

now lets take away (1 + i):

10 / (1 + i)²⁹ = 1

things get a little bit more simple now:

10 = (1 + i)²⁹

²⁹√10 = ²⁹√(1 + i)²⁹

1.082636734 = 1 + i

i = 1.082636734 - 1 = 0.082636734 = 8.2636734%

now we replace i in any equation:

= $50,000 x {[(1 + 0.082636734)³⁰ - 1.03³⁰] / [(1 + 0.082636734)³⁰ x (0.082636734 - 0.03)]} x (1 + 0.082636734)

= $50,000 x  {[10.82636738 - 2.427262471] / [10.82636738 x 0.052636734]} x (1 + 0.082636734)

= $50,000 x  {8.399104909 / 0.56986462} x (1.082636734)

= $50,000 x 14.73877236 x 1.082636734

= $797,837

8 0
3 years ago
Which of the following practices are not considered essential for a comprehensive JIT implementation: Uniform production (also k
bogdanovich [222]

Answer:

False ( "Large lot sizes" is not considered essential for JIT )

Explanation:

Just in time is an arrangement and alignment of raw material supply with the production process of the business. It minimizes the holding cost, lead time required for delivery of raw material, the setup times and sizes of orders.

The Large lot sizes is not a characteristics of JIT because it may requires the storage facility to place the large orders until used in production which might increase the holding cost.

So, Large Lot Sizes are not considered essential for a comprehensive JIT implementation.

4 0
3 years ago
The labor-force participation rate is? a. 47.1 percent. b. 50.2 percent. c. 65.9 percent. d. 70.2 percent.
il63 [147K]

The labor-force participation rate is 70.2 percent
therefore the correct option is D

What is Labor force?
The labor force is made up of both employed people and unemployed people, and the unemployment rate is calculated by dividing the number of jobless people by the total labor force. If a person works for compensation or runs their own business for at least an hour any day of the week, including the twelfth of the month, they are regarded to be employed. If a person works for compensation or runs their own business for at least an hour any day of the week, including the twelfth of the month, they are regarded to be employed. In a family-run firm, individuals who put in at least fifteen hours of unpaid work are also regarded as employees. Employed people include those who are temporarily away from their work due to a vacation, illness, inclement weather, or other personal reasons. Those who worked full-time (35 hours or more during the survey week) and those who worked part-time are both considered to be in the employed category.

To learn more about Labor Force
brainly.com/question/24939447

#SPJ4

Complete Question
The labor-force participation rate is? a. 47.1 percent. b. 50.2 percent. c. 65.9 percent. d. 70.2 percent, e. none of the above

4 0
2 years ago
San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contributi
Sliva [168]

Answer:

If closed the operating income  will decrease by 50,000

Is a better scenario to continue with the residential sercives

Explanation:

<em><u>current scenario:</u></em>

contribution margin 450,000

Fixed Cost 480,000

net loss 30,000

<em><u>drop scenario:</u></em>

contribution margin = 0

fixed cost 450,000-370,000 = 80,000

net loss (80,000)

8 0
3 years ago
CodeHead Software Inc. does software development. One important activity in software development is writing software code. The m
Irina18 [472]

Answer:

Explanation:

Standard hours per week = 40 hours

Standard rate per hour = $32

Actual rate per hour = $40

Labour rate variance = 40 - 32 = $8 (unfavourable)

Actual cost per week = 40 × 40 = $1600

Standard cost per week = 40 × 32 = $1280

Labour cost variance = actual cost per week - standard cost per week

= 1600 - 1280

= $320 (unfavourable)

Actual codes written in first week = 5650

Standard codes per week = 5 × 25 × 40 = 5000

Actual cost per code = 1600/5660 = $0.2832

Standard cost per code = 1280/5000 = 0.256

Labour efficiency variance = 0.2832 - 0.256 = $0.0272 (unfavourable)

If the team generated 4,650 lines of code according to the original plan:

Code generated = 4650

Number of programmers = 5

Average codes per hour per programmer = 25

Total codes per hour = 25 × 5 = 125

Standard codes per week = 40 × 125 = 5000

Actual time to write 4650 codes = 4650/125 = 37.2 hours

Standard time = 40 hours

Idle time = 40 - 37.2 = 2.8 hours

Labour time variance = 2.8 hours

Cost of idle time = 2.8 × 32 = $89.6 (unfavourable)

4 0
2 years ago
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