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Dovator [93]
3 years ago
12

You want to purchase a new car, and you are willing to pay $19,970. If you can invest at 10% per year and you currently have $15

,000, how long will it be before you have enough money to pay cash for the car
Business
1 answer:
andrezito [222]3 years ago
3 0

Answer:

It will take 3 years to have enough money to purchase the car.

Explanation:

We can use either Compounding or Discounting Formula to determine the time it will take to make $19,970 from $15,000 when the investment rate is 10%. Lets go with the Compounding Formula:

                           Future Value = Present Value * (1 + i) ^ n

<u>Re-arrange equation for "n" which is the Time Period:</u>

⇒ FV / PV = (1 + i) ^ n

Taking log on both sides;

⇒ log (FV / PV) = log (1 + i) ^ n

OR log (FV / PV) = n log (1 + i)

OR n = log (FV / PV) / log (1 + i)

Simply put values now;

⇒ n = log (19,970 / 15,000) / log (1 + 10%) = log (1.33) / log (1.1) = .12 / .04

OR n = 3

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Answer:

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Explanation:

The efficiency unit of labor is determinate as a product of the total number of workers in the economy, where the human capital is the best indicator of productivity

5 0
2 years ago
Which costs are correlated with the firm’s sales and include the costs of labor, raw materials, and sales commissions?
Llana [10]

Answer:

The correct answer is letter "B": direct.

Explanation:

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3 years ago
New correctional treatment specialists might be required to work under a trial period, called a(n)
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3 years ago
The company is currently selling 5,000 units per month. Fixed expenses are $243,000 per month. The marketing manager believes th
REY [17]

Answer:

If the company decides to increase its advertising budget, its net profits will  decrease by $200 (= $56,800 - $57,000).

Explanation:

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net income =                           $57,000

If the company increases its advertising budget be $11,000 it should sell 180 more units per month, the new income statement would be:

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The term "capital structure" describes how a company decides to finance its projects and assets through a combination of internal resources, debt, and equity.

To lower their risk of insolvency, remain effective, and ultimately maintain or become profitable, a company should determine the ideal debt to equity ratio.

The capital structure of a company is influenced by a wide range of variables, including leverage or trading on equity, company growth, the nature and scale of the business, the desire to maintain control, the flexibility of the capital structure, investor requirements, the price to float new securities, the timing of the issue, the corporate tax rate, and the legal requirements.

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