Unlike product, promotion, or place, price is the only part of the marketing mix

Gareth bought a home for $135,000. The home gained 2. 2% in value every year for eight years until Gareth sold it. How much prof

saw5 [17]

The amount of profit made by Gareth upon the sale of the home is $26,700.

Computation:

Given,

$P$ = Principal Amount of $135,000

$i$ = interest rate of 2.20%

$n$ =number of years are 8 years

First, the value of the home at the end of the 8th year will be computed by using the formula of future value.

$\begin{aligned}\text{Future Value}&=P\times(1+i)^n\\&=\$135,000\times(1+0.022)^8\\&=\$160,672.27\end{aligned}$

Now, the profit will be computed by taking the difference of the future value of the home and the purchase price or the principal amount of the home.

$\begin{aligned}\text{Profit}&=\text{Future Value\;-\;Principal Amount}\\&=\$160,672.27-\$135,000\\&=\$25,672.27\;\text{or}\;\$25,700\end{aligned}$

Therefore, at the time of sale of the home, the amount of profit gained by Gareth is $25,700.

To know more about future value, refer to the link:

brainly.com/question/1759639

3 0

2 years ago

Which of the items is most likely to be a complement to coffee?

mestny [16]

Answer:

creamer

Explanation:

Complement Goods:

Are goods that do not compite to each other. At the contrary, if a higher quantity is demanded of one good, a higer demand will ocur n the other as well. And if the demand from one of them decrease, the demand of the complement also decrease.

Give n two products X and Y A consumer will be more like to purchase Y as units X are accumulated.

From the list the only good that fits in this definition is the creamer

8 0

3 years ago

One recurring problem in supply chain management is when information about the demand for a product gets distorted as it passes

vfiekz [6]

Answer: Bullwhip Effect

Explanation:

The Bullwhip Effect occurs as a result of changes in the original information about the demand of a product as the information passes across the supply chain.

In the Bullwhip Effect small changes at the customers end of the supply chain leads to large variation in the manufacturing end of the chain.

8 0

3 years ago

A company headquartered in Vancouver, British Columbia, is building a pipeline in Russia. The invoice amount is due in 90 days a

Alinara [238K]

Answer:

C. Sell 28,000,000 rubles

Explanation:

By doing so, the company will <u>immediately receive</u> the amount equivalent in Canadian Dollars by selling 28 million rubles in forward and after 90 days when the invoice amount (28 million rubbles) is received from building the pipeline, will be used to netting of the forward contract.

In this way, company can hedge the currency exposure, and reduce the risk which can be generated from currency volatility.

5 0

3 years ago

The transactions of Spade Company appear below.

torisob [31]

Answer:

Please see the required journals below.

Explanation:

a. Owner's investment in business

Debit Cash $18,750

Credit Common Stock $18,750

b. Purchase of office supplies

Debit Office Supplies $544

Credit Cash $544

c. Purchase of office equipment on credit

Debit Office Equipment $10,369

Credit Accounts Payable $10,369

d. Receipt of fees for services provided to a customer

Debit Cash $2,212

Credit Fees Earned $2,212

e. Payment of office equipment purchased on credit

Debit Accounts Payable $10,369

Credit Cash $10,369

f. Fees for services provided to a customer

Debit Accounts Receivable $3,975

Credit Fees Earned $3,975

g. Payment for monthly rent

Debit Rent Expense $515

Credit Cash $515

h. Collection of partial accounts receivable in (f) above

Debit Cash $1,670

Credit Accounts Receivable $1,670

i. Withdrawal of cash for personal use

Debit Drawings account $1,100

Credit Cash $1,100

5 0

3 years ago