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miskamm [114]
3 years ago
7

For services rendered, an attorney accepts a 90-day note for $5,500 at 8% simple interest from a client. (Both interest and prin

cipal are repaid at the end of 90 days.) Wishing to use her money sooner, the attorney sells the note to a third party for $5,560 after 30 days. What annual interest rate will the third party receive for the investment?
Business
1 answer:
MrMuchimi3 years ago
6 0

Answer:

5.395%

Explanation:

principal = $5,560

time = 1/6 hours

rate = r

Interest of client = p × t × (r/100)

= 5500 × (1/4) × (8/100)

= $110

Amount paid by client = 5,500 + 110

                                    = 5,610

This is the amount received by third party .

Principal of third party = 5,560

therefore, Interest = 5,610 - 5,560

                              = $50

i = p × t × (r/100), p = 5,560, t = 2 months = 1/6 years

50 = 5,560 × (1/6) × (r/100 )

r = 3,000 ÷ 556

 = 5.395%

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Answer:

value chain

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Answer: Option D

 

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3 years ago
(Land’s End) Geoff Gullo owns a small firm that manufactures "Gullo Sunglasses." He has the opportunity to sell a particular sea
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Answer:

Answer is explained in the explanation section below.

Explanation:

a)

Answer-a with option-1

the land end sale price is $100, purchase cost is $65 and salvege valu is $53

So the underage cost = Cu = 100-65 = 35 and overage cost = Co = 65-53 = 12

the critical ratio = Cu/(Cu+Co) = 35/47 = 0.7422

From the standard normal distribution function The Z value at 0.7422 = 0.66

The optimal order quantity = 200 + 0.66 x 125 = 282.5

The optimal order quantity = 282.5

b)

Answer-b with option-1

the land end sale price is $100, purchase cost is $55 and salvage value is $0

So the underage cost = Cu = 100-55 = 45 and overage cost = Co = 55-0 = 55

the critical ratio = Cu/(Cu+Co) = 45/100 = 0.45

From the standard normal distribution function The Z value at 0.45 = -0.12

the optimal order quantity = 200 - 0.12 x 125

The optimal order quantity = 185

c)

We have to calculate the expected profit in each case to determine which option Lands Ends should choose.

With option-1 Geoff's sells 282.5 units at $65 for total revenue of 18363 and production cost of 282.5 = 7063

Geoff credits Lands ends for each returned sunglass so we need to evaluate how many sunglasses Land Ends return.

Expected lost sales = 125 x 0.1528 = 19.1

Expected sales = 200 - 19.1 = 180.9

expected left over inventory = 282.5 - 180.9 = 101.6

Expected profit = (100-65) x 180.9 - (65-53)x 101.6 = 5112

Expected profit = 5112

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So option-1 is preferred.

d)

If the Land chooses option-1 and orders 275 units Then Geoff earn = 275 x $65 = $17875

and production cost = $25 x 275 = $6875

With order quantity 275 the z statistics = 0.6

and expected lost sales = 125 x 0.6 = 21.09

Expected left over inventory = 275-200+21.09 = 96.09

So the Geoff's buy back cost = 96.09 x 53 = $5093

and expected profit = $17875 - $5093 = $5907

expected profit = $5907

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