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3 years ago

How much must be deposited at the beginning of each year to accumulate to $25,000 in two years if interest is at 9%?

Business

1 answer:

Alika [10]3 years ago

7 0

Answer:

$10,974.05

Explanation:

Given that,

Amount to accumulated = $25,000 in two years

Interest rate = 9%

Let the amount be X,

Total amount after two years:

= Year 1 + Year 2

= X(1.09)^2 + X(1.09)

= 1.1881 X + 1.09X

= 2.2781 X

SO, Total amount after two years:

2.2781 X = 25,000

X = 25,000 ÷ 2.2781

= $10,974.05

Hence, the amount deposited at the beginning of each year is $10,974.

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Coral Music manufactures harmonicas. Coral uses standard costs to judge performance. Recently, a clerk mistakenly threw away so

jeka57 [31]

Answer:

Explanation:

std rate $9.00

actual rate $8.50

standard hours 5,200

Total variance: 390 Favorable

Rate variance:

$(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance$

Efficiency

$(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance$

Total:

rate + efficiency

$(standard\:rate-actual\:rate) \times actual \: hours + (standard\:hours-actual\:hours) \times standard \: rate = 390$

We plug our know values and solve:

$(9 - 8.5) \times actual \: hours + (5,200-actual\:hours) \times 9 = 390$

0.5actual hours + 46,800 - 9actual hours = 390

46,800 - 390 = 8.5 actual hours

46,410/8.5 = actual hours = 5,460

now we calculate each variance:

rate: 2,730

$(9-8.5) \times 5,460 = DL \: rate \: variance$

efficiency (2,340)

$(5,200-5,460) \times 9 = DL \: efficiency \: variance$

8 0

3 years ago

McDonald’s requires $750,000 in cash or liquid assets, a __________ initial fee, plus a monthly service fee based on the restaur

nignag [31]

McDonald’s requires $750,000 in cash or liquid assets, a $45,000 initial fee, plus a monthly service fee based on the restaurant’s sales performance and rent.

Explanation:

According to McDonald's, total project expenditures, including construction costs and upgrades, vary from $1 million to $2.2 million. The number is determined by the restaurant geography and scale and the preference of kitchen equipment, branding, design style and landscaping.

McDonald's charges a franchisee premium of $45,000 and a monthly service rate equivalent to 4% of gross sales. Franchisees also have to pay rent, a proportion of the monthly sales to the client.

The International Union of Service Employees estimates that franchisees pay an average of 10.7% of revenue in rental costs.

The startup costs for McDonald's franchisee are like those of KFC, Wendy and Taco Bell.

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3 years ago

If the world price for good A is above the domestic price for good A without trade, then producer surplus will ________ and tota

goblinko [34]

Answer:

The correct answer is letter "B": increase; decrease.

Explanation:

Producer surplus is the difference between the price at which the manufacturer actually sells a product and the minimum price the manufacturer would have accepted. The surplus results from the producer being able to sell their goods at a market price higher than their minimum price.

So, if producer A manufactures a product that is being sold at a higher price level abroad, its producer surplus will increase. However, the overall economic surplus with trade will decrease since the introduction to producer A to the market will allow consumers to purchase the goods at a lower price.

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3 years ago

Exercise 21-15 Direct materials and direct labor variances LO P2 The following information describes production activities of Me

Molodets [167]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Actual direct materials used 16,000 lbs. at $4.05 per lb.

Actual units produced 30,000

Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.00 per pound.

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (4 - 4.05)*16,000

Direct material price variance= $800 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 30,000*0.5= 15,000

Direct material quantity variance= (15,000 - 16,000)*4

Direct material quantity variance= $4,000 unfavorable

6 0

3 years ago

Read 2 more answers

Penn Station is saving money to build a new loading platform. Two years ago, they set aside $24,000 for this purpose. Today, tha

vekshin1

Answer:

0,087792106 = rate

Explanation:

We need to calculate the interest of the investment

principal x (1 + rate)^time = value

replacing with the know values

24,000 x (1+rate)^2 = 28,399

28,399/24,000 = (1 + rate)^2

sqrt (28,399/24,000) -1 = rate

now we solve for the unknown value

0,087792106 = rate

4 0

3 years ago