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seropon [69]
3 years ago
10

A person is planning to open a savings account with the intent to buy a house in 5 years. They will invest an equal amount each

month for 5 years. This account will earn 6% per year(.5% per month)and will have $300,000 at the end of 5 year term. What is the amount of the monthly investment?
A. 4169

B. 4435

C. 4300

D. 5296
Business
1 answer:
lisov135 [29]3 years ago
3 0

Answer:

The correct answer is C: $4300

Explanation:

Giving the following information:

They will invest an equal amount each month for 5 years.

This account will earn 6% per year(0.5% per month)and will have $300,000 at the end of the 5-year term

We need to use the following formula:

final value= {A[(1+i)^n-1]}/r

A= cuota

i= monthly interest

n= 60 months

Isolating A:

A= (FV*i)/[(1+i)^n-1]

A= (300000*0.005)/[(1.005^60)-1]

A= 1500/0.34885= 4300

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Options:

  • Category 6 cable runs for each network device with fiber optic feeds in/out of the buildings.
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  • Fiber Optic connections to all network device s, e.g. clients and servers.  
  • Coaxial cable to all devices on the network with a fiber-optic feed in/out of the office.

Answer:

<u>Category 6 cable runs for each network device with fiber optic feeds in/out of the buildings.</u>

<u>Explanation:</u>

Remember, we are told to consider the fact that the company has a medium-sized budgetary constraint, meaning we should pick an alternative networking component option that is cost-effective and yet serves the same purpose.

Since part of the requirements is that the networking components is a fast connection between client and server systems, a Category 6 (Cat6) cable has the ability to achieve speeds of up to 10 Gbps (Gigabyte per second). Meaning? it can meet the fast connection requirements at a reduced cost.

6 0
3 years ago
On September 1, 2012, Valdez Company reacquired 16,000 shares of its $10 par value common stock for $15 per share. Valdez uses t
galben [10]

Answer:

d. Treasury Stock for $240,000

Explanation:

The journal entry for re-acquisition of the stock under the cost method is shown below:

Treasury stock A/c Dr $240,000

    To Cash A/c                         $240,000

(Being the stock are reacquired for cash)

The $240,000 amount should be come from

= Number of shares × common stock per share

= 16,000 shares × $15

= $240,000

Since the stock is reacquired so we used the treasury stock account instead of the common stock account

7 0
4 years ago
Warren Cassell, owner of Just Books, a very small book store, makes special orders for customers at no extra charge, provides fr
Anna007 [38]

Answer:

Cassell is relying on Guerrilla Marketing strategy in this case.

Explanation:

Guerrilla Marketing:

It is a such type of marketing strategy in which we use non-traditional ways to accomplish our marketing goals. This unconventional way of marketing is directed towards developing an emotional between a business/organization and its customer.

Example:

The common example of guerrilla marketing is as follow:

A company named "XYZ" sells soft drink and they start a campaign in a public space in which they offer free drinks to the public. The people taste their soft drink for free and tell others about it.  

In our case, Warren Cassell use this strategy of marketing by offering them free gift-wrapping, free autographed copies of books etc so that the customer develop a very strong emotional bond with the book store. As a result, they will tell other people about her generosity and will help her to expand her business.    

5 0
4 years ago
Read 2 more answers
Whispering Company sells goods that cost $301,000 to Ricard Company for $402,000 on January 2, 2020. The sales price includes an
Jobisdone [24]

Answer:

The amount of revenue to be recognized at 31st March is $383500

Explanation:

The revenue amount that should be recognized in the income statement as at March 31,2020 is the  sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.

Hence, the amount of revenue as at 31st March is calculated thus:

Sales price                                                                     $365000

Installation fee for 3 months(3/6*$37000)                   <u>$18500</u>

Total revenue as at 31st March                                    $ 383,500

The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months

7 0
3 years ago
On November 1, 2018, Master's Co. borrows $500,000 from its bank for five years at an annual interest rate of 10%. According to
romanna [79]

Answer:

b. Liabilities are understated by $4,167 accrued interest payable

Explanation:

7 0
3 years ago
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