1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lianna [129]
3 years ago
14

The Sanchez Company purchased a delivery truck on February 1, 2018. The purchase agreement required Sanchez to pay the total amo

unt due of $15,000 on February 1, 2019. Assuming an 8% rate of interest, the calculation of the price of the truck would involve multiplying $15,000 by the:
Business
2 answers:
pashok25 [27]3 years ago
7 0

Answer:

0.925926

Explanation:

present value = future value / (1 + r)ⁿ

  • future value = 1
  • r = 8%
  • n = 1

present value = 1 / (1 + 8%) = 1 / 1.08 = 0.925926

0.925926 = the present value of $1 using an 8% discount rate for the period of 1 year. To determine the actual price of the truck you can just multiply $15,000 by 0.925926 = $13,888.89 ≈ $13,889

The basic premise of finance is that the value of money decreases in time and $1 today is worth more than $1 tomorrow.

diamong [38]3 years ago
4 0

Answer:

Present value of $1

Explanation:

In this question, we are asked to give the value by which the amount due on a truck is to be multiplied given the interest rate.

From the question, we can identify that $15,000 is the future value of the truck.Now, we are tasked with calculating the present value of the truck.

In order to obtain the present value, the $15,000, which is the present value will have to be multiplied by the present value of $1 for an interest rate i of 8% and a time of year n = 1( considering the time between February 1 2018 and February 1, 2019)

You might be interested in
Hancock Inc. retains most of its earnings. The company currently has earnings per share of $11. Hancock expects its earnings to
monitta

Answer:

D1 = $3.50

D2 = $3.50

D3 = $3.50

Ke = 10% = 0.1

Po = <u>D1</u> +     <u>D2</u> +      <u>D3 </u>

      (1+ke)   (1+ke)2   (1+ke)3

Po = <u>$3.50</u> +   <u>$3.50</u>  + <u>$3.50 </u>

        (1+0.1)      (1+0.1)2  (1+0.1)3

Po = $3.18    +  $2.89  + $2.63

Po = $8.70

None of the above

Explanation:

In this scenario, we need to discount the dividend in each year by the required at rate of return of 10%. The aggregate of the price obtained as a result of discounting in year 1 to year 3 gives the current market price.

7 0
3 years ago
Your healthy 63-year-old neighbor is about to retire and comes to you for advice. From talking with her, you find out she was pl
pashok25 [27]

Answer:

Both mutual funds and money market funds are similar in the sense that they pool money from several investors in a variety of instruments. The difference is that money market funds pool the money in very liquid, short-term securities, while mutual funds do the same but in less liquid, longer-term securities.

The 63-year-old neighbor should therefore split the money around 60/40, 60% of the funds for mutual funds, in order to have long-term security, and 40% in the money market funds, in order to have quick cash available when needed.

5 0
2 years ago
You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost
Finger [1]

Answer:

False

Explanation:

Since for finding out whether the offer is accepted or not, first we have to determine the total cost at 600 number of players and for 601 number of players which is

The total cost of 600 players is

= 600 × $300

= $180,000

The total cost of 601 players is

= 601 × $301

= $180,901

Now the marginal cost is 601 player is $901 which is difference between the $180,000 and $180,901 that is higher than the offered price i.e $550

Therefore, the offer should not be accepted

6 0
3 years ago
The annual carrying cost for a consumer product is $115, the ordering cost is $1,150, and the annual demand is estimated to be 1
STatiana [176]

Answer:

Store should take the advantage of discount.

Explanation:

Economic order quantity is the level of units ordered which minimize the total cost.

The economic order quantity (EOQ) is computed by applying the following formula

EOQ = [ ( 2DO ) / H ]^1/2

where D = Annual Demand in units = 1,000

S = Setup or ordering cost = $1,150

H = Holding or carrying cost per unit, per year = $115

EOQ = [ ( 2 x 1,000 x $1,150 ) / $115 ]^1/2

EOQ = [ $2,300,000 / $115 ]^1/2

EOQ = 20,000^1/2

EOQ = 141.42 units

Cost of EOQ

Purchasing cost =  1,000 x $810 = $810,000

Ordering cost = (1,000 / 141.42) x $1,150 = $8,132

Carrying cost = ( 141.42 / 2 ) x $115 = $8,132

Total cost = $810,000 + $8,132 + $8,132 = $826,264

Cost of Discount

Purchasing cost =  1,000 x $810 x 80% = $648,000

Ordering cost = (1,000 / 151) x $1,150 = $7,616

Carrying cost = ( 151 / 2 ) x $115 = $8,683

Total cost = $648,000 + $7,616 + $8,683 = $664,299

Store should take the advantage of discount because it incurs lower cost.

4 0
3 years ago
A retail store's Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales. If the sale
ella [17]

Answer:

$10,619.05

Explanation:

When sales is made at a tax rate of 5%, the entries to be posted in the proportion of the transaction amount

Dr Cash/ Accounts receivable 105%

Cr Sales revenue 100%

Cr Sales tax 5%

As such, if Sales Account totals $223,000 which includes both the sales revenue and the sales tax on the sales, it means that the accounts contains 105%, as such, the sales tax which is the amount owed the taxing agency

= 5/105 * $223,000

= $10,619.05

3 0
3 years ago
Other questions:
  • Complete the sentence. Entrepreneurs are visionaries who __________. A. anticipates future consumer demands B. wear vision-corre
    13·1 answer
  • Suppose there are only two types of goods
    15·1 answer
  • A consumer products company competes around the world primarily by customizing or differentiating its products to meet unique lo
    12·1 answer
  • Lucas Laboratories' last dividend was $1.50. Its current equilibrium stock price is $15.75, and its expected growth rate is a co
    5·1 answer
  • Global​ Enterprises, Inc. signed a oneminusyear $ 42 comma 000 note payable at 9​% interest on April​ 1, 2018. If Global only ad
    5·1 answer
  • Garrett makes and distributes copies of here we go again, a movie copyrighted by indie motion pictures, inc. Garrett does this w
    6·1 answer
  • Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 10
    13·1 answer
  • A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and marginal cost curves occurs
    9·1 answer
  • How are employment and education related.<br>​
    9·1 answer
  • 1. Suppose the Glucometer company is to sell the machine only to hospitals, and the company will maintain the Glucometer machine
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!