Answer:
Mark is correct.
Explanation:
If Cody saves for three months, he will not incur any other cost apart from the purchase price of the stereo. Cody may even earn some interest on the savings depending on his type of account.
The use of a credit card is incurring a debt. The credit card debt is usually among the highest in the market. It calculates interests monthly. If Coby purchases the credit card, he will pay three months' interest on the credit.
The savings option will cost less money because it eliminates interest payments.
Answer:
Current share price =$77.81
Explanation:
Price of the stock today = 
.
where P4 = 
where D5 = D4(1+g)
Price of the stock today = 
= $77.81
The reason why the demand is extremely time-and-place dependent would be: <span>Because customers must be present for service to be delivered
</span>customers must be present for services businesses because Unlike merchandising business, service business focused on the enhance Customer's experience rather than focus on selling the product.
Answer:
Annual deposit= $71,428.57 per year
Explanation:
Giving the following information:
You expect to live to 100 and work until you turn 65. You estimate that you will need $100,000 per year.
Every dollar in the plan earns 7% per year.
You have just turned 22 years old.
First, we need to calculate the amount of money necessary in retirement:
Final value= 100,000*35 years= 3,500,000
Now, using the following formula, we calculate the yearly deposit needed:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
n= 65-22= 43
FV= 3,500,000
i=0.07
A= (3,500,000*0.07)/[(1.07^22)-1]
A= 245,000/3.43
A= 71,428.57 per year
Answer:
$5,200
Explanation:
Calculation for the bad debt expense to be recorded for the year
Using this formula
Bad debt expense= Ending balance in allowance for doubtful accounts - Unadjusted allowance for doubtful accounts
Let plug in the formula
Bad debt expense= $ 7,000 - $ 1,800
Bad debt expense= $ 5,200
Therefore the amount of bad debt expense to be recorded for the year will beb $ 5,200
