A firm conducted a market analysis and determined that a new wo

Slim made a single deposit of $5,000 in an account that pays 7.2% in 2015. What equal-sized annual withdrawals can Slim make fro

evablogger [386]

Answer:

annual withdrawals is $1,393.87

Explanation:

given data

Amount Deposited = $5,000

Annual Interest Rate = 7.2%

First withdrawal = 2020

last withdrawal = 2025

solution

we consider equal sized annual withdrawals = x

so we can say that Amount Deposited amount will be as

$5,000 = $\frac{x}{(1+0.72)^5} + \frac{x}{(1+0.72)^6} + \frac{x}{(1+0.72)^7} + \frac{x}{(1+0.72)^8} + \frac{x}{(1+0.72)^9} + \frac{x}{(1+0.72)^{10}}$ ..........1

we take common here $\frac{x}{(1+0.72)^{4}}$

so

$5,000 = $\frac{x}{(1+0.72)^{4}} \times ( \frac{1}{(1+0.72)^1} + \frac{1}{(1+0.72)^2} + \frac{1}{(1+0.72)^3} + \frac{1}{(1+0.72)^4} + \frac{1}{(1+0.72)^5} + \frac{1}{(1+0.72)^{6}} )$

solve it we get

x = $1,393.87

so that annual withdrawals is $1,393.87

7 0

3 years ago

The demand for wooden pencils is very responsive to a change in price. That is, the demand for these pencils is highly elastic.

Natalija [7]

Answer:

D. Price will rise, quantity purchased will fall, and gross revenues will fall.

Explanation:

It will lead to a higher price of the good as the management has to take into consideration the amount to wages to be paid to the workers, thus increasing the price of the goods. This will result to a lower demand at a higher price because the price increases and competitions will take advantage of the situation and that will also reduce the revenue of the firm.

4 0

3 years ago

Which of the following reasons does not contribute to a higher level of unemployment?

Mandarinka [93]

Hi there!

The answer is A) A lack of labor mobility as people choose to remain in their hometown.

Unemployment is a complex issue, here are the reasons why the other options increase unemployment:

-Reduction in Union bargaining activities would increase unemployment because employers wouldn't have as many restrictions to reduce their workforce.

-Reduction in economic activity due to a recession would increase unemployment as the demand for products, and for workers too, will decrease.

-The existence of efficiency wages causes unemployment because the demand for labor will decrease, as employees get more and more efficient.

<span>A lack of labor mobility as people choose to remain in their hometown will not contribute to a higher level of unemployment. Instead, labor mobility can increase unemployment because there would be an oversupply of labor in a specific region. </span>

7 0

3 years ago

An example of a nondepository financial institution is which of the following?

Nostrana [21]

The answer is C - Brokerage Firm

7 0

3 years ago

Read 2 more answers

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending

aleksandr82 [10.1K]

Raw materials purchased during the year amount to: $1,081,000

<u>Giving the following information:</u>

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

<u>To calculate the direct material purchased, we need to use the following formula:</u>

Beginning Raw Materials + Purchases – Ending Raw Materials = Raw Materials Used

$547,000 + Purchases – $610,000 = $1,018,000;

Purchases = $1,018,000 + $610,000 – $547,000 = $1,081,000

<h3>What is the Cost of Raw Materials Purchased?</h3>

Purchases of raw materials, consumables and services are purchases of all commodities used as inputs in the production process and of services related to the supply of factors of production, such as renting property or equipment, leasing, temporary staff, and, in general, all outside services purchased for own use.

The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.

Your question is incomplete, but most probably your full question was:

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending Raw materials inventory $547,000 $610,000.The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

A. $955,000.

B. $892,000.

C. $1,565,000.

D. $408,000.

E. $1,081,000.

Learn more about Cost of Raw Materials Purchased on:

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7 0

2 years ago