Answer:
a. It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Explanation:
Use the formula below to determine the number of months it would take Rachel to pay off her debt;
C *{1-(1+r)^(-n×t)}/(r/n)=PV
where;
C=annuity
r=annual interest rate
n=number of compounding periods in a year
t=number of years
PV=present value
In our case;
PV=$10,574
C=$260
r=16%=16/100=0.16
n=12
t=unknown
replacing;
260*{1-(1+0.16/12)^(-12×t)}/(0.16/12)=10,574
1-(1+0.16/12)^(-12×t)={10,574×(0.16/12)}/260
1-{1.013^(-12 t)}=0.542
(1-0.542)=1.013^(-12 t)
ln 0.458=-12 t (ln 1.013)
t=-ln 0.458/12×ln 1.013
t=5
It will take her 5 years to pay for her wardrobe
b. She should shop for a new card once she is done paying for this one.
c. She should shop for a new card after finishing paying for this card since going further into debt with the current card would be a bad idea. This is due to the fact that an annual interest rate of 16% is very high. The best option would therefor to finish her payments on the credit card, then shop for a new card with a lower annual interest rate.
Answer:
Limited natural resources such as infertile land and lack of coastal access can limit economic growth for a country.
Explanation:
Natural resources are a source of wealth for the country. Mineral such oil and precious stones have made nations wealthy.
Land is a factor of production. Lack of fertile lands will make a nation dependent on imports for its food security. Access to coastal areas facilitates cheaper and fast international trade. Landlocked countries use harbor of other nations for global business. Goods and services from landlocked counties may be more expensive as a result of high transport costs.
Section A = 22,500 seats
section B = 14,900 seats
section C = 7,600 seats
Answer:
Dr Machinery $4500
Cr Cash $4500
Explanation:
The reason is that the Internation Accounting Standard IAS 16 Property, Plant & Equipment says that the company must capitalized all those costs that are necessary to make the asset ready to use which means that the cost of training which is $500 and purchasing cost which is $4000 must be capitalized as part of the asset.
So the entry would be:
Dr Machinery $4500
Cr Cash $4500
Answer:
Option (D) 16.57%
Explanation:
Data provided in the question:
Realized gain
r₁ = 20%
r₂ = 20%
r₃ = 10%
Now,
Geometric average = ![[(1+r_1)\times(1+r_2)\times...\times(1+r_n)]^{\frac{1}{n}}](https://tex.z-dn.net/?f=%5B%281%2Br_1%29%5Ctimes%281%2Br_2%29%5Ctimes...%5Ctimes%281%2Br_n%29%5D%5E%7B%5Cfrac%7B1%7D%7Bn%7D%7D)
- 1
here,
n = 3
therefore,
Geometric average = ![[(1+0.20)\times(1+0.20)\times(1+0.10)]^{\frac{1}{3}}](https://tex.z-dn.net/?f=%5B%281%2B0.20%29%5Ctimes%281%2B0.20%29%5Ctimes%281%2B0.10%29%5D%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
- 1
or
Geometric average = ![[1.584]^{\frac{1}{3}}](https://tex.z-dn.net/?f=%5B1.584%5D%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
- 1
or
Geometric average = 1.1657 - 1
or
Geometric average = 0.1657
= 0.1657 × 100%
= 16.57%
