Answer:
A) We need to save $1,005 per month in order to have 1,500,000 in 30 years.
B) We will be able to borrow 158,579
C) We will have 2,259,361 in 35 years
D) The equivalent amount of money is 12,585
Explanation:
A) We are given a future value that we need to have in 30 years. So our future value is 1,500,000. Our present value is 0, our interest rate is 8/12=0.667. We divide 8 by 12 because we need to save money per month. The number of compounding periods are (30*12)=360. We multiply by 12 because monthly payments. Now we will enter this information in a financial calculator to find future value.
Pv= 0
FV = 1,500,000
I=0.66
N=360
Compute PMT= 1,005
B) PMT= 900
I=5.5/12=0.458
N= 30*12=360
FV=0
Compute PV
PV=158,579
C) PV= 100,000
PMT= 300
N= 35*12= 420
I=8/12=0.66
Compute FV=2,259,361
D) We need to know how much money will we need 30 years from now if we want to buy goods and services which are worth 6,000 today considering an inflation rate of 2.5%
We will multiply 6000 by (1+Inflation)^number of years
6000*(1.025)^30
=12,585
Answer:
E) $250,000
Explanation:
As for the provided information, we know that the External Failure Cost is defined as the cost of meeting the failure in products after sales.
Warranty cost in form of warranty claims = $250,000
Note :
Cost to dispose the rejected products are the cost incurred before sales thus, not part of external failure.
Training is done prior to sales, thus, not an external failure cost.
Recall cost is also not an external failure cost.
Production losses again are incurred before sales.
Defective products are found at inspection stage before sales.
Inspection in between the process of production, thus before sales.
Correct option is:
E) $250,000
Answer:
The adjusted bank and book balance is shown below:-
Explanation:
The computation of the adjusted bank and book balance is given below:-
Bank statement balance Book balance
Opening balance $26,960 $26,620
Add: Transit Deposit $3,000 Earned Interest $150
Less: Outstanding check 4000 Error on check $810
($4,900 - $4,090)
Adjusted Balance $25,960 $25,960
Answer:
i think it is the 3rd one I'm not sure but I need help on one of mine and it would be really good if you can help me I will appreciateit
Answer:
Normal good
Explanation:
Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.
Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.
A normal good is a good whose demand increases as income increases.
If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.
