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Neko [114]
3 years ago
12

Aggie Company is going to trade-in an old piece of equipment for new equipment.

Business
1 answer:
Setler79 [48]3 years ago
6 0

Answer:

Option C,$2,997 is the correct answer.

Explanation:

The amount to be paid  in quarterly installments over a 5 year period is the list price less the down payment and the trade-in value of $10,000 as shown below.

list price                $65,000

down-payment    ($6,000)

trade-in-value      ($10,000)

balance                $49,000

The quarterly installment can be computed using the pmt formula in excel as follows:

=pmt(rate,nper,-pv,fv)

rate is the quarterly interest rate of 8%/4=2%

nper is the number of quarterly installments which is 4*5=20

pv is the present value of the amount to be paid in installments which is $49000

fv is the future value ,it is not unknown,hence it is zero

=pmt(2%,20,-49,000,0)

=$2,996.68  

approx.$$2,997

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If college graduates typically earn more money than high school graduates, this would indicate that their level of education and income are positively correlated.

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5 0
1 year ago
Suppose a bank has $200 million in checking account deposits with no excess reserves and the required reserve ratio is 15%. If t
Verizon [17]

Answer:

Excess reserve = $180 million

Explanation:

Required-reserve ratio: The minimum percentage that banks are required to keep as reserve is known as the required-reserve ratio. In this question, it is given as 10%. Multiply this ratio by the total deposit and you will get the required reserve in dollar amount.

Therefore the required reserve for this bank = 10% ×$200 million= $20 million

Excess reserve; Excess reserve is the balance of the total deposit over and above the required reserve. The bank can lend and create loan asset from this balance.

It is calculated as = Total deposit - Required reserve

So we apply this to our question

Excess reserve = $200 million - (10% × $200 million) = 180  million

Excess reserve = $180 million

                         

6 0
4 years ago
How does a policy manual help an organization
eimsori [14]
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5 year plan example for high school seniors
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7 0
2 years ago
Assume that you invest $550 in a certificate of deposit that has an annual interest rate of 4.5 percent. According to the rule o
RoseWind [281]

Answer:

$1,100

Explanation:

Calculation for what will the investment be worth after 16 years

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Therefore According to the rule of 72 what we are going to do is to double the amount of money invested in the Certificate of deposit which was $550

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Therefore what the investment be worth after 16 years will be $1,100

5 0
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