Answer:
$33467.03
Explanation:
Given: we are given that $33000 is the cost of the car that’s on sale if the person wants a cash option.
Leasing option of $495 per month for the next two years with an immediate payment of $95 as a balloon payment for the vehicle.
The person will sell the vehicle for $21000 after 2 years from now.
We need to calculate the breakeven price to sell the vehicle after two years if the person sold the car on either option.
Therefore we will use the future value annuity formula to calculate how much would yield on the lease payments of $495 after two years first.
![Fv = P [((1+r) ^n)-1)/r]](https://tex.z-dn.net/?f=Fv%20%3D%20P%20%5B%28%281%2Br%29%20%5En%29-1%29%2Fr%5D)
Where Fv is the future value that will yield from the payments.
P is the periodic payment which is $495 per month.
r is the interest per period so in this case it is 5%/12 as the 5% is on an annual basis and the individual will make monthly payments.
n is the number of payments made and in this case it is 24 payments because $495 is paid monthly for 2 years.
Now we insert the values on the formula above
Fv = $495 [((1+ (5%/12) ^24)-1)/ (5%/12)] then compute on a calculator and get the answer
Fv = $12467.03 + $95 we add $95 to the solution because the customer must pay it as a deposit if they choose the lease option.
The value the customer must sell the car for to break even for both options in two years’ time is the sum of $21000 which the customer sells the car for in two years’ time plus the above future value for the lease repayments, so $21000+ $12467.03 =$33467.03 .
Answer:
I procastinate to do my work that was due 4 days ago
Answer:
Cash disbursements for insurance would be $ 168,700.
Explanation:
In accrual based accounting expenses are recorded when they are incurred. The payment against item purchased does not make it qualified to be recorded as expense. Any advance payment made is recognize as asset untill performance obligation has been completed. So in order to determine amount of payment we will use following accounting equation.
Payments = Prepaid current period + expenses - opening prepaid balance
Payments = 197,000 + 62,000 - 90,300 = $ 168,700
Answer:
556.6 or 557 units
Explanation:
Given that,
Digby's sales forecast for Dixie = 506 units
Digby wants to have an extra units on hand above and beyond their forecast = 10%
Production units = Sales × (1 + Reserve Percentage)
= 506 × (1 + 10%)
= 506 × 110%
= 556.6 or 557 units
Therefore, the Dixie's will produce 557 units in order to have a 10% reserve of units available for sale.
Answer:
O will increase and output and price level will increase as well.
Explanation:
If workers are more educated, the productivity of the country will increase, increasing total output. As investment in training increases, so thus the workers' capacity to perform more efficiently. Also, when the demand for better (or more) trained workers increases, the salary level will also increase. As workers gain training and/or experience, their salaries increase, e.g. on average, a person with a college degree earns much more than someone with just a high school degree. This increase in the level of salaries will lead to an increase in the general price level.
