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mojhsa [17]
3 years ago
9

A problem is listed below. Identify its type. Ted owns a small florist shop. Since his business is booming, his realizes he will

soon need one more delivery van. He decides he will purchase a full size van versus a minivan, which he currently owns. The van he is looking to buy in 2 years will cost him $33,000. How much should he invest each quarter into an account that pays 4% per year compounded quarterly, so that he can have the desired funds in 4 years?
Business
1 answer:
TEA [102]3 years ago
5 0

Answer:

Quarterly deposit=  $1,912.17

Explanation:

Giving the following information:

The van he is looking to buy in costs $33,000.

Interest rae= 4% per year compounded quarterly

Number of years= 4 years

First, we need to calculate the real interest rate:

Interest rate= 0.04/4= 0.01 per quarter

Now, to calculate the quarterly deposit, we need to use the following formula:

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

A= quarterly deposit

Isolating A:

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

A= (33,000*0.01) / [(1.01^16)-1]

A= $1,912.17

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Answer: The following is not considered when you are calculating cost of quality:<u><em>  The cost of gaining formal acceptance of project deliverable.</em></u>

Cost of Quality contains all the costs that are both internal and external to the system; whereas, the Cost of Quality include the conformance, considering any costs connected with both appraisal and interference.

Cost of Quality is calculated as :

Cost of Quality = Cost of Poor Quality  + Cost of Good Quality

4 0
3 years ago
The first step in creating a budget is to identify your expenses. true or false.
sergij07 [2.7K]

The answer is True. Hope this helps


5 0
3 years ago
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IKEA employees are inspired to work hard by an anecdote from their Swedish founder, Ingvar Kamprad, who told how he was berated
MAVERICK [17]

Answer:

Hero

Explanation:

Hero -

It refers to a person can be male as well as a female , who is admired for his or her noble and courageous activity , is referred to as a hero .

Many people makes the hero his or her ideal an tries to follow the lifestyle , character , behavior and nature , and tries to copy him .

Hence , from the given scenario of the question ,

The correct answer is hero .

5 0
3 years ago
Rossdale Co. stock currently sells for $72.87 per share and has a beta of 1.22. The market risk premium is 7.10 percent and the
Paul [167]

Answer:

Cost of Equity =11.56%

Explanation:

The cost of equity can be determined using any of the following methods:

  1. The Dividend Valuation Model(DVM)
  2. Capital Asset Pricing Model (CAPM)

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.

According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.  

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This CAPM is considered superior to DVM because it incorporates risk. Hence, we will use the CAPM  

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.90%, Rm-Rf- 7.10% β- 1.22

E(r) = 2.90% + 1.22×(7.10)% = 11.562  %

Cost of Equity =11.56%

7 0
3 years ago
Floyd and Merriam start a partnership business on June​ 12, 2019. Their capital account balances as of December​ 31, 2020 stood
Ann [662]

Answer:

Floyd       43,500

Merriam    12,500

Ramelow   23,000

Explanation:

heir capital account balances as of December​ 31, 2020 stood as​ follows: Floyd     $ 46,000

Merriam $ 25,000

Ramelow 1/3 interest.

23,000 is the third of the parthnership

23,000 x 3 = 69,000

46,000 + 25,000 + 23,000 = 94,000

loss of 94,000 - 69,000 = 25,000

distributed equally among the members:

Floyd     46,000  - 25,000 / 2  = 43,500

Merriam 25,000 - 25,000 / 2 =   12,500

6 0
3 years ago
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