1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
katrin [286]
3 years ago
11

You want to travel to Europe to visit relatives when you graduate from college three years from now. The trip is expected to cos

t a total of​ $10,000. Your parents have deposited​ $5,000 for you in a CD paying​ 6% interest​ annually, maturing three years from now. Aunt Hilda has agreed to finance the balance. If you are going to put Aunt​ Hilda's gift in an investment earning​ 10% annually over the next three​ years, how much must she deposit now so you can visit your relatives in three​ years?
Business
1 answer:
Anna11 [10]3 years ago
5 0

Answer:

Aunt Hilda must give him $3,039

Explanation:

Giving the following information:

The trip is expected to cost a total of​ $10,000. Your parents have deposited​ $5,000 for you in a CD paying​ 6% interest​ annually, maturing three years from now. Aunt Hilda has agreed to finance the balance. If you are going to put Aunt​ Hilda's gift in an investment earning​ 10% annually over the next three​ years.

First, we need to calculate the total amount of the parents investment.

FV= PV*(1+i)^n= 5,000*(1.06)^3= $5,955

Difference= 10,000 - 5,955= 4,045

Aunt investment:

Final value= 4,045

PV= FV/(1+i)^n= 4,045/1.10^3= 3,039

Aunt Hilda must give him $3,039

You might be interested in
Having a _____ normally means you are just clocking in and out. When you have a _____, you are required to manage time well and
givi [52]
The answer is D: job/career
5 0
3 years ago
Read 2 more answers
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month
Ad libitum [116K]

Answer:

75%

Explanation:

Given that,

Total Sales = $174,000

Total Variable expenses = $43,500

Total contribution margin = $130,500

Total fixed expenses = $86,175

Net operating income = $44,325

Overall contribution margin (CM) ratio for the company:

= (Total contribution margin ÷ Total sales) × 100

= ($130,500 ÷ $174,000) × 100

= 0.75 × 100

= 75%

5 0
3 years ago
TRUE/FALSE: in perfect competition, each firm
frez [133]

Answer:

true

Explanation:

4 0
2 years ago
Jovan's Movers rents out trucks with a crew of two on a daily basis, usually to homeowners who are moving or to companies with d
Tju [1.3M]

Answer:

Explanation:

In this problem business of Jovan is to rent out trucks and earn revenues. On a particular day there is a shortage of one truck. It can be taken on rent from other party. If a big truck is hired, then any load can be carried. But the rental cost is $200. Small truck cannot carry weight beyond a range. In that case two trips are needed. Rental of one trip of small truck is $130. Cost of two trip is $150 extra. So it is $130+$150=$280. Probability of two trips is 40%. So based on these data, following decision tree diagram is draw:

From this decision tree expected rental cost of small truck based on probability is-

Expected rental of small truck =0.6 x $130 + 0.4 x $280

                                                                =$78+\$112

                                                                 =$190

Decision: Since expected rental of small truck is $190, it is lower than rental of big truck of $200. So small truck is recommended.

If probabilities of trips are 50:50, then expected rental of small truck is-

Expected rental of small truck =0.5 x $130 + 0.5 x $280

                                    =$65 + $140

                                    =$205

Now it is more than rental of big truck. So hiring of big truck is recommended.

b) Now Jovan wants to hire an outside consultant. He will assess and recommend whether to hire a big truck or a small truck. If he recommend for big truck, then big truck will be hired. Otherwise a small truck will be bought. As per current situation probability of two trip is 40%. If consultant approves this situation, then big truck will be hired. Thus probability of hiring big truck is 40% under recommended scenario. So probability of hiring small truck with one trip is 60%. On this basis decision chart is drawn below:

Based on this diagram, expected cost of hiring a truck is-

Expected rental =0.4 x $200 + 0.6 x $130

                          = $80 + $78

                          = $158

If you compare this expected cost with the expected cost of $190 in part (a), then it is lower by $190-$158=$32

Hence, maximum $32 can be paid to consultant for hiring and taking perfect decision.

c) Now Jovan has been taken as risk averser. His risk tolerance value is $1,000. Suppose utility function is exponential of following form-

U=e^{P} where p is the probability of two trips by small truck

As a risk averser he will undertake risk only when this U value is $1,000.

U=e^{P} = $1,000

Take log on both side to get-

Plog e =  log1,000

{P}{log}2.71828 =  log1,000 [ since e =2.71828]

{P}= 3 / 0.43429189

    =6.929 percent

So the risk averse Jovan will go for small truck only when probability of two trips for small car is 6.929 percent. Here it is 40%. So big truck will be hired.

6 0
3 years ago
business may be owned by an individual or a group of persons'' in the light of the above statement enlist different form of busi
Rus_ich [418]
<span>Sole Proprietorship - These businesses are possessed by one person. Sole proprietorships possess all the assets and incomes. Partnerships - two or more people share possession of a single business there is a legal agreement that profits will be shared and capital must be shared by each partner. Corporations – these are chartered by the state, taxed, and the possessors of a corporation are its stockholders.</span>
3 0
3 years ago
Other questions:
  • Valencia Corp. has permanent productive capacity devoted to the production of goods and services to be marketed in Asian markets
    15·1 answer
  • Suppose that the United States fixes the dollar-pound exchange rate. In the process of maintaining the fixed exchange rate, if t
    10·1 answer
  • A company estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter ov
    13·1 answer
  • Roger purchased a stock for $16 a share. The stock paid a $1 annual dividend and increased in price by $2 a year for the followi
    14·1 answer
  • A teacher is purchasing supplies for the classroom and has three discounts to apply to the purchase one at a time. First discoun
    7·1 answer
  • True or False: This indicates that there is excess capacity in the market for bats. True False Monopolistic competition may also
    14·1 answer
  • Sonia creates tests for judging product safety and advises companies about how to reduce harm from use or misuse of the product.
    15·1 answer
  • Variable Costs + Fixed Costs = ?<br> Total output<br> Total costs<br> Marginal costs
    7·1 answer
  • Universal Containers' contact center manager needs to measure the following metrics: - Agent productivity - Customer satisfactio
    12·1 answer
  • Effective employee training within an organization Group of answer choices all of these choices enables employees to perform tas
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!