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Luba_88 [7]
4 years ago
15

A student deposits $1,642 in the bank that pays 6.2% interest yearly (using yearly compounding). After 5 years he withdraws the

money from the account and deposits it in perpetual annuity with interest rate 7.5%, that pays X amount yearly. Find X.
Business
1 answer:
tamaranim1 [39]4 years ago
6 0

Answer:

the perpetuity will pay the student 166.36 dollar per years

Explanation:

First, we solve for the amount of the original investment after 5 years:

Principal \: (1+ r)^{time} = Amount

Principal 1,642.00

time 5.00

rate 0.06200

1642 \: (1+ 0.062)^{5} = Amount

Amount 2,218.17

<u>Then, this goes into a perpetual annuity at 7.5%</u>

2,218.17 x 0.075 = 166.3630983 = 166.36

the perpetuity will pay the student 166.36 dollar per years

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Dave Seminsky’s ability to open Sumarian Coffee in Shanghai can be attributed to which of the following?A. ethnocentrismB. avail
svetlana [45]

Answer:

E. globalization

Explanation:

-Ethnocentrism refers to judging another culture based on your own culture and considering yours as superior.

-Availability of supplies refers to having access to the products needed for the business.

-Avoidance of tariffs and import quotas refers to not having limitations like  paying taxes on imports or exports or having a maximum quantity of a product that can be imported or exported.

-Lower labor costs refers to low salaries.

-Globalization refers to a process of integration that involves people, governments and companies around the world. When talking about business is about developing an international presence and beginning to operate in other countries.

According to this, Dave Seminsky’s ability to open Sumarian Coffee in Shanghai can be attributed to globalization.

8 0
3 years ago
Metro Inc. has two production departments (Lamination and Molding) and three service departments (Human Resources, Technology Su
eimsori [14]

Answer:

Lamination= $50,000

Explanation:

Giving the following information:

Metro Inc. has two production departments:

Lamination and Molding

Three service departments:

Human Resources, Technology Support, and Purchasing.

The $200,000 costs of Human Resources are allocated based on the number of employees in each production department.

The Lamination department has 40 employees.

The Molding department has 120 employees.

Proportion of employees:

Lamination= 40/160= 25%

Molding= 120/160= 75%

Allocation:

Lamination= 200,000*0.25= $50,000

Molding= 200,000*0-75= $150,000

7 0
3 years ago
Feiler Corporation has total current assets of $493,000, total current liabilities of $357,000, total stockholders' equity of $1
Citrus2011 [14]

Answer:

The answer is C.

Explanation:

Current ratio shows the liquidity of of a company. This ratio tells us how a company or business is able to meet its short obligation.

This ration is very important to lenders because they use it to know of you will be able to meet the interest payment and principal

The formula for current ratio is:

Current assets/current liabilities

Total current assets is $493,000, Total current liabilities is $357,000

= $493,000/$357,000

=1.38

3 0
3 years ago
Productivity is a measure of:
Arisa [49]

Answer:

c. the amount of input needed to create a certain output.

Explanation:

Productivity measures the efficiency in the use of the company's resources in the production process. The term productivity is associated with reduced wastage, high quality, and a high input to output ratio.

Productivity is about how well a company uses inputs to generate output. It is measured by calculating the volume of output per hour or comparing the total output against the number of employees.

3 0
3 years ago
The premiums paid by the employer in a business life insurance policy are
Tema [17]
<span>A life or health insurance policy is owned by an employee, but the premiums are paid by the employer: o The premiums are treated as taxable income to the employee. o The employer may deduct the premiums against business income as long as the premiums are a reasonable business expense.</span>
3 0
3 years ago
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