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3 years ago

Complete the statement about the compound interest expression.

Business

1 answer:

Misha Larkins [42]3 years ago

5 0

Answer:

The answer is "A"

Explanation:

Cumulative interests are counted by one plus the annual interest rate adjusted to the cumulative periods of less than one. The first principal sum is determined by one. The cumulative sum of the initial loan is then deducted from the calculation.

Formula:

$A= \ p (1+ \frac{r}{n})^{nt} \\\\\ Where,\\ \\ A = \ annual \ interest\\P = \ principal\\t= time\\r= rate$

That's why we apply the above formula to calculate the annual interest rate.

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projected benefit obligation exceeds the fair value of the plan assets.

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3 years ago

A large company in the communication and publishing industry has quantified the relationship between the price of one of its pro

Advocard [28]

Answer:

a. The maximum profit that can be achieved is $300,000.

b. The unit price at this point of optimal demand is $90.

Explanation:

From the question, we can obtain the following:

x = Maximum expected demand = 6,000 units

Price = 150 - 0.01 x = 150 - (0.01 * 6,000) = 150 - 60 = $90

Fixed cost per year = $50,000

Variable cost per unit = $40

Total variable cost = Variable cost per unit * Maximum expected demand = $40 * 6,000 = $240,000

Total cost = Fixed cost + Total variable cost = $50,000 + $240,000 = $290,000

Revenue = Price * Maximum expected demand = $90 * 6,000 = $540,000

Therefore, we have:

a. What is the maximum profit that can be achieved if the maximum expected demand is 6,000 units per year?

Profit = Revenue - Total cost = $540,000 - $240,000 = $300,000

Therefore, the maximum profit that can be achieved is $300,000.

b. What is the unit price at this point of optimal demand?

As already stated above, the following are given in the question:

x = Maximum expected demand = 6,000

Price = 150 - 0.01 x ........................... (1)

Substitute for x in equation (1), we have:

Price = 150 - (0.01 * 6,000) = 150 - 60 = $90

Therefore, the unit price at this point of optimal demand is $90.

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3 years ago

Preferred Stock Valuation Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend o

Norma-Jean [14]

Answer:

9.17%

Explanation:

Because this is perpetual preferred stock, there’re no tenor fixed but last forever until the company closes/ broken.

Thus the required rate of return is simply calculated as below:

Rate = dividend/ stock price = $2.75/ $30 = 9.17%

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4 years ago

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3 years ago

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According to economic historians, modern economic growth first happened in a. 1776, when Scottish inventor James Watt perfected

klio [65]

Answer:

a. 1776, when Scottish inventor James Watt perfected a powerful and efficient steam engine

Explanation:

James Watt was born on 30 January 1736 and died on 25 August 1819). He was a chemist, inventor, and mechanical engineer. In 1776, he invented Watt steam engine which an improvement on Thomas Newcomen's 1712 Newcomen steam engine. Watt Steam engine then assisted the Industrial Revolution to bring important change not only to his native Great Britain but also to the part of the world.

Watt steam engine was invented due to the interest Watt had in the steam engine technology. He observed that the designs of the engines then were energy wasting because of the need to cool and reheat cylinder repeatedly. The separate condenser which was a design enhancement was then invented by Watt. This invention then prevented energy wasting, and steam engines then become efficient, saved power and cost.

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4 years ago