A lumber mill bought a shipment of logs for $58,000. When cut, the logs produced a million board feet of lumber in the following
grades. Compute the cost to be allocated to Type 1 and Type 2 lumber, respectively, if the value basis is used. (Do not round your intermediate calculations.) Type 1 - 400,000 bd. ft. priced to sell at $0.12 per bd. ft. Type 2 - 400,000 bd. ft. priced to sell at $0.06 per bd. ft. Type 3 - 200,000 bd. ft. priced to sell at $0.04 per bd. ft. Multiple Choice $58,000; $24,000. $34,800; $17,400. $10,944;$5,800. $24,000; $8,000. $16,000; $16,000.
1 answer:
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Answer:
Monthly payment: 460.41 dollars
Effective rate: 4.07%
Explanation:
we will calculate the PTM of an annuity of 25,000 over 5 year at 4%
PV $25,000.00
time 60
rate 0.003333333
C $ 460.413
Now we need to know the effective rate, which is the same as 4% compounding monthly:
effective rate = 0.040741543 = 4.07%