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Naily [24]
3 years ago
9

Assume that the interest rate is 4% compounded monthly. Roy buys 100 shares of Moogle company, at the market price of $30 per sh

are. For this he borrows the money from the bank. Assume that after six months he sells the shares for a price of $S per share. Find the minimal S for which Roy has enough money to fully pay back his loan to the bank. (Round to the nearest cents)
Business
1 answer:
Inessa [10]3 years ago
8 0

Answer:

$30.61

Explanation:

Data provided in the question:

Annual Interest rate = 4% = 0.04

Since compounded monthly

Therefore,

Monthly interest rate, r = 0.04 ÷ 12 = 0.0033

Price per share = $30

Number of shares purchased = 100

Total value of shares purchased = $30 × 100

= $3,000

Therefore,

the amount borrowed = Total value of shares purchased

= $3,000

Amount to be paid after 6 months = Principle × ( 1 + r )ⁿ

= $3,000 × ( 1 + 0.0033  )⁶

= $3,060.50

Therefore,

The minimal value of S

= Amount to be paid after 6 months ÷ Number of shares

= $3,060.50 ÷ 100

= $30.605 ≈ $30.61

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Answer:

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Explanation:

Giving the following information:

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Depreciable cost per mile= $0.37

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3 years ago
Mink Corporation purchases new office furniture for $7,200,000 on January 1, 2022. Mink estimates that the furniture has a $400,
TiliK225 [7]

In 2026, the deprecation schedule would show a depreciation expense of $360,000.

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The first step is to determine the accumulated deprecation up until 2026.

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3 0
2 years ago
Mitchell Corporation bought equipment on January 1, 2017. The equipment cost $300,000 and had an expected salvage value of $50,0
docker41 [41]

Answer:

$250,000

Explanation:

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<em>Depreciable Cost = Cost - Salvage Value</em>

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Depreciable Cost = $300,000 - $50,000 = $250,000

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marshall27 [118]

Answer: a. an express warranty

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5 0
3 years ago
1. Which of the following questions would be permissible to ask during an interview with a candidate who
Marina CMI [18]

Answer:

I would say the first one

Explanation:

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7 0
3 years ago
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