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3 years ago

A list of reasons on why could it take 36 years and $61,060 to pay off a $10,000 credit card dept.

Business

1 answer:

Lady bird [3.3K]3 years ago

3 0

Answer:

This is due to compound interest on the credit card bills.

Explanation:

Credit card debt of $10,000 is repaid when its due. The bank lends the credit card amount and then charges interest on the debt amount. The compound interest is added to the debt amount and then future value of the debt is greater than the present value.

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Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.90; direct

siniylev [52]

Answer:

$ 8.9

Explanation:

Given:

Direct materials cost = $ 10.90

Direct labor = $ 14.90

Variable overhead cost = $ 3.90

Fixed overhead cost = $ 8.90

Selling price offered for the product = $ 38.60

Net incremental cost = Offered selling price - ( Direct materials cost + Direct labor + Variable overhead cost )

The fixed cost is not included because, it will be incurred whether the offer is accepted or not.

therefore,

Net incremental cost = $ 38.60 - ( $ 10.90 + $ 14.90 + $ 3.90 )

The net incremental cost = $ 8.9

7 0

3 years ago

Read 2 more answers

Kevin Oh is planning to sell a bond that he owns. This bond has four years to maturity and pays a coupon of 10 percent on a semi

ser-zykov [4K]

Answer:

The price of the Bond is $937.9

Explanation:

Price of bond is the present value of future cash flows, The coupon payment and the face value are discounted separately and added together to make the price of the bond. To calculate Price of the bond use following formula

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

As the payments are made on semiannual basis so, all the calculation will be made accordingly

Assuming Face value of the bond is $1,000.

Coupon payment = 1000 x 10% = $100 annually = $50 semiannually

Number of periods = n = 4 years x 2 = 8 periods

Yield to maturity = 12% annually = 6% semiannually

Price of the Bond =$50 x [ ( 1 - ( 1 + 6% )^-8 ) / 6% ] + [ $1,000 / ( 1 + 6% )^8 ]

Price of the Bond = $50 x [ ( 1 - ( 1.06 )^-8 ) / 0.06 ] + [ $1,000 / ( 1.06 )^8 ]

Price of the Bond = $310.49 + $627.41

Price of the Bond = $937.9

7 0

3 years ago

A company has got $500 in cash and cash equivalents, $300 in inventory and $200 in account receivables. The firm has long term a

ElenaW [278]

Answer:

The computation is shown below:

Explanation:

The computation is shown below:

Current ratio = current assets ÷ current liabilities

where,

Current assets = cash + inventory + account receivables

= $500 + $300 + $200

= $1000

Current liabilities is

= $200 + $400

= $600

So, the current ratio is

= $1,000 ÷ 600

= 1.67 times

Debt Ratio is

= Total Liabilities ÷ Total Assets

= $600 ÷ $1,500

= 40%

TIE is Time Interest Earned ratio

= EBIT ÷ Interest Expense

= $5,000 ÷ $2,000

= 2.5

Profit margin is

= Net Income ÷ Total Sales

= $800 ÷$10,000

= 8%

And,

Total asset turnover is

= Sales ÷ Total Assets

= $10,000 ÷ $1,500

= 6.67

7 0

3 years ago

The part of the money supply produced by the private banking system is called by the government or central bank is called?

-Dominant- [34]

Open Market Operation is the system in which the Central Bank supply money to the private banks.

Explanation:

The Reserve bank buy as well as sale the government securities so that it can control money supply. By selling and buying securities in a free market the amount of money is either expanded or contracted.

During inflation the price of the product rises , at that time the Reserve Bank purchase the securities so that money is not spend but in the other hand during deflation there is fall in the price as a result the Reserve Bank sale the securities so that purchase can be done.

8 0

3 years ago

"Minimum wage laws cause unemployment because the legal minimum wage is set" 9) A) above the market wage, causing labor demand t

Vitek1552 [10]

Answer: E) above the market wage, causing labor demand to be less than labor supply.

Explanation:

Minimum wage simply refers to the lowest wage that employers can pay their workers. Minimum wage is a form of price floor which means that it's typically higher than the equilibrium or market wage.

In this case, since it's higher than the market wage, there'll be an increase in the supply of labor as those that are unemployed will be willing to work duw to the increase in the wage rate.

On the other hand, there'll be a reduction in the demand for labor as employers typically will want to reduce cost and won't be interested in employing more workers.

Therefore, the correct option is E

5 0

3 years ago