The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, the beginning of the
1 answer:
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Answer:
5.70%
Explanation:
In this question, we applied the RATE formula that is shown on the attachment below:
Provided that,
Present value = $1,000 × 105% = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 6.250% ÷ 2 = $31.25
NPER = 13 years × 2 = 26 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to maturity is 5.70%
We assume the semi annual basis is followed so we half the interest rate and the coupon rate and doubles the time period
Answer:
The optimum production quantity is 72 wheel bearings per batch.
Explanation:
Wheel Rite can produce 480 wheel bearings per day.
Setup cost are $39 per batch.
Holding costs are $0.70 per unit per year.
The optimum batch size can be calculated as the one that minimizes the cost. This can be calculated with the Economic Order Quantity formula:
In this case, the units are:
D: daily demand (52 u.)
S: Setup cost per order ($39)
H: holding cost per unit per year ($0.70)
Then, we have:
The optimum production quantity is 72 per batch.