Answer:
Explanation:
You need to calculate the value of 8 × 12 = 96 different cash flows.
There is not a formula to calculate that, because the<em> $6 dollar increase</em> does not represent growing with a constant rate.
The monthly payments are:
Month payment ($)
0 (today) 300
1 306
2 312
3 318
n 306 + 6 (n-1)
96 (last) 876
Then you must create a spreadsheet with these features:
- Five columns
- First column is the month, and starts with month 0 (today)
- Second column is the initial balance, the first balance is 0
- Third column is the interest: it is calculated as the monthly interest by the initial balance. The monthly interest is 6%/12 = 0.06/12 = 0.005
- Fourth column is the amount deposited: for month zero it is $300, and every month you add $6.
- Fith column is the final balance: it is the sum of the initial balance (second column) + interest (third column) + deposit (fourth colum)
- 96 rows: 8 years × 12months/year = 96 months.
- The initial balance of each row is equal to the final balance of the previous row.
Here a sample of the first three rows:
Month Initial balance Interest Deposit Final balance
0 0 0 300 300
1 300 300×0.005 = 1.5 306 607.5
2 607.5 607.5×0.005 312 922.54
When you do it up to the row 96, the final balance is <em>the balance in the acccount at the end of the eight years</em>.
The last row of your spreadsheet will show:
96 69,042.81 345.21 876 70,264.03
Thus, <em>the balance at the end of eight years will be $70,264.03</em>
Answer: Segmentation by usage
Explanation: Segmentation by usage splits customers according to how often they use a product. Using segmentation by usage, customers can be classified into non - users, who don't use the product at all, light and medium users, who can range from little usage of the product to average use of the product, and heavy users, who mostly use these products.
From thr first paragraph it is clear that usage segmentation is used to separate the user's into different classes based on their usage, and identify which class to target when it comes to sales. At Estelle Cosmetics Company, it was deduced that of this company's total sales, less than 7% of this market are heavy users. These users purchase nearly 71% of the company's products. This company will probably focus their marketing efforts on the heavy users, as they contribute to the majority of sales within their company.
Answer:
$360,000
Explanation:
Net sales : $2,500,000
Cost of goods sold : ($1,300,000)
Gross profit : $ 1,200,000
Interest expense : ($50,000)
Net profit : $ 1, 150,000
Retained earning: ($30,000)
Dividends paid : ($300,000)
Tax at 40%: =40% * $1,150,000
($460,000)
Depreciation expense : $360,000
Answer:
17.76%
Explanation:
The computation of the time-weighted return on your investment is given below
But before that we have to do the following calculations
Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%
Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%
Now the time weighted return is
(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)
= 1.1412 × 1.2151
= √1.3867 - 1
= 17.76%
