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3 years ago

$1000 Principal with a 6% Interest Rate, Compounded Semi-Annually for 3 years.

Business

1 answer:

umka2103 [35]3 years ago

8 0

Answer:

$1,194.05

Explanation:

The applicable formula is A = P x ( 1+ r) ^ n

Where A is the future amount

P is principal amount $1000

r is 6% per year or 0.06

n= time in years; 3 years

Since interest is compounded semi-annually, r will be 0.06 /2 = 0.03

n will be 3 years /2 = 6 periods

A = $1000 x ( 1 + 0.03) ^ 6

A = $1000 x 1.194052

A=$1,194.05

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Firm A currently dumps 157 tons of chemicals into the local river. Firm B currently dumps 183 tons of chemicals into the local r

Kruka [31]

Answer:

$20,670

Explanation:

Firm A Firm B

Actual Dumping 157 183

Pollution Permits Allotted 11 11

Reduction Required 146 172

Cost of Dumping 1 ton $160 $65

As the cost of dumping to Firm A is $160 which is higher than the marginal cost of dumping of Firm B which is $65, so it is better that Firm B take benefit from it by selling it at $65. So now total tons require dumping is 318 tons (146 + 172).

Total cost of reducing pollution = 318 tons * $65 = $20,670

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3 years ago

The management of dominican sugar company is considering whether to process further raw sugar into refined sugar. refined sugar

horsena [70]

We shall Ignore cost of sugar cane at $0.36 per pound, as its going to be incurred for both processes.

Lets find the cash flow from not processing further:

42500 pounds Sugar @ $1.43 per Pound $60,775

Lets find the cash flow from Processing Further:

If 42500 pounds of raw sugar are processed further, we get 34000 pounds of refined sugar(42500/1.25)

34000 pounds of refined [email protected] $2.23 per pound $75280

Additional Processing charges for 42500 [email protected]$0.49 ($20825)

Total Cash Flow $54995

As can be observed, the organisation earns more when they sell raw sugar, Thus sugar should not be processed further.

5 0

3 years ago

Which of the following compensation proposals is most likely to be in the best interest of the company’s shareholders? A base sa

lianna [129]

Answer:

A base salary of $500,000 plus a stock option package for 250,000 shares, with 20% of shares maturing at the end of each of the next five years

Explanation:

This options will force the employee to stay in the firm for at least 5 years

Also it will tie his contribution to the market share

So their interest will be alinged with the company's interest of increasing his value and project better earnings through the five years program.

3 0

3 years ago

If the interest rate on a savings account is 0.02%, approximately how much money do you need to keep in this account for 1 year

zavuch27 [327]

Answer:

$49,950

Explanation:

X = amount in account

Make (x times the interest rate) equal to the $9.99 you will need to earn to cover the fee.

.02%* x = 9.99

.0002x= 9.99 (Divide both sides by .0002)

x = $49,950

With such a small interest rate, you will need to have a large sum of money in order to earn enough to cover the fee.

8 0

3 years ago

Read 2 more answers

Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i

Ivahew [28]

Answer:

a) Net income using incremental analysis is  $692

b) PINA should accept the order because it will increase its net income by $692

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

= (10,945 + 29651 + 21094)/19,900

=$3.1

Variable cost per unit of sale = $3.1 + $0.35 = $3.45

a) Incremental Analysis

Change in Net Income: $

Incremental contribution :

( 4.77 - 3.45) × 5,350 = 7,062

Increase in Fixed cost :

(45,374 - 39,004) ( 6370)

Net income 692

b)  PINA should accept the order because it will increase its net income by $692

6 0

3 years ago