1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kruka [31]
2 years ago
5

McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build a new warehouse in Medicine

Hat two years from today. To date, it has invested $500,000. If it continues to invest $50,000 at the end of every quarter into a fund earning 6% quarterly, will it have enough money to build the warehouse two years from now?Show calculations to support your answer
Business
1 answer:
aleksley [76]2 years ago
5 0

Answer:

No it wont have enough money to build a warehouse in two years.

Explanation:

Firstly we are given that the warehouse is $1 million so the company needs to save this amount of money in two years time.

We know that the company has invested $500000 to date therefore we need to calculate if this $50000 per quarter investment will cover the the other portion for $500000 to meet the warehouse cost of $1 million so we will use the future value annuity formula to calculate this which is :

Fv = C[((1+i)^n -1)/i]

where Fv will be the future value after two years of the $50000 investment

C is the periodic payment of $50000

i is the interest rate per period which is 6% per quarter

n is the number of periods the payment is done here it is 4 x 2years= 8 periods / investments of $50000 that will be done.

thereafter we substitute on the above formula:

Fv = 50000[((1+6%)^8 - 1)/6%]

Fv = $494873.40

then we combine this amount to $500000 to see if it reaches $1 million

$494873.40+ $500000 = $994873.40 which is close to the warehouse cost of $1 million but it does not reach it so the company wont have enough money to purchase the warehouse.

You might be interested in
Concepts like value and relationship marketing are important in designing a marketing program because such a program is what con
Andre45 [30]

Answer:

<em>Concepts like value and relationship marketing are important in designing a marketing program because such a program is what connects an organization to </em><em><u>it's costumer</u></em>

8 0
2 years ago
A general rule of thumb is to keep your credit utilization rate at 30% or lower. What is your approximate credit utilization rat
Leto [7]

Answer:

90%

Explanation:

7 0
3 years ago
Isabel Lopez from Lewiston, Idaho, who is 19 years old, recently received an inheritance of $54,000 from her grandmother's estat
Zielflug [23.3K]

Answer:

She will have $16,772.59 more in the second investment.

Explanation:

Giving the following information:

Recently she received an inheritance of $54,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education.

We need to use the following formula:

FV= PV*(1+i)^n

First savings account:

FV= 54,000*(1+0.04)^10= $79,933.19

Second investment:

FV= 54,000*(1+0.06)^10= $96,705.78

She will have (96,705.78 - 79,933.19) $16,772.59 more in the second investment.

3 0
2 years ago
A firm in a competitive industry has a total cost function of TC = 0.2 Q2 – 5Q + 30, whosecorresponding marginal cost curve is M
Mama L [17]

Answer:

Consider the following calculations

Explanation:

TC=0.2Q2 - 5Q + 30,

MC=0.4Q - 5.

Equilibrium condition

MC=P

0.4Q - 5 = 6

0.4Q = 11

Q = 11/.4

=27.5

Profit = TR - TC

        =27.5*6 - .2(27.5)2 -5(27.5)+30

       =165 -756.25 -137.5 +30

       = - 698.5

Firm is incurring loss

Firm will continue to produce as long as it is able to recover AVC

AVC =0.2Q -5

=0.2(27.5) -5

=5.5 -5

=0.5

Hence firm will continue to produce

7 0
3 years ago
Introduction to Early Childhood
Ipatiy [6.2K]

C is the right answer because since the National Association for the education of young children has to respect and support their colleagues

7 0
3 years ago
Other questions:
  • You work for Amazon and you are charged with building consumer awareness for the latest version of the firm’s Kindle reader. Wha
    7·1 answer
  • AJ plans to attend a retreat on mindfulness. He paid a $500 nonrefundable registration fee, made a reservation at a hotel that c
    8·1 answer
  • The marketing manager of Raven Golf Club finds that the club can increase its market share of it slashes membership prices durin
    8·1 answer
  • A debit card is also know a(n)________
    15·1 answer
  • During the ________ era, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising a
    10·1 answer
  • You are a senior manager at a large consumer goods company. The company president has noticed that recent college graduates and
    13·1 answer
  • Partridge Bookstore had 500 units on hand at January 1, costing $9 each. Purchases and sales during the month of January were as
    14·1 answer
  • Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activi
    8·1 answer
  • Explain how a company will “go public” by issuing an IPO.
    13·1 answer
  • FLASH Delivery has EPS of $6.00 per share and has a payout ratio of 40%. Its dividend is expected to grow at a rate of 5.25%. If
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!