Answer:
PV= $62,158.4
Explanation:
Giving the following information:
Annual payment= $6,400
Number of periods= 15 years
Interest rate= 6% = 0.06
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {6,400*[(1.06^15) - 1]} / 0.06
FV= $148,966.21
<u>Now, the present value:</u>
PV= FV/(1+i)^n
PV= 148,966.21 / (1.06^15)
PV= $62,158.4
Answer:
Natural:
b.A diamond company that owns nearly all of the world's diamond mines.
d.A soda company that spends over $3 billion on advertising every year.
e.A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste.
Government
a.A small-town bar that is the only establishment in the county licensed to serve liquor.
c. A pharmaceutical company receives a patent for a new cancer-fighting drug.
Explanation:
Government barriers are licenses or patents that prevent future firms from entering, natural is everything else.
Answer:
Paula should purchase car B.
Explanation:
If Paula purchases car A, then her total payments will be $22,000 ($458.33 per month).
If instead she purchases car B, she will need to finance $20,200 for 3 years and her monthly payments will be $447.11. Total payments = $447.11 x 48 = $21,461.28.
this is an ordinary annuity and in order to calculate the monthly payment you must:
monthly payment = principal / annuity factor (PV, 0.25%, 48 periods) = $20,200 / 45.17869 = $447.1134511 = $447.11.
Answer:
Departmental wage expenses for Dept. Y = 8,750 and Dept. Z = 10,250.
Explanation:
Direct wages of Y and Z sum 2,000 + 3,500 = 5,500. The remaining expenses are the difference between total wage expense and direct wage expenses. That means indirect expenses are 19,000 - 5,500 = 13,500. These has to be allocated half for each department.
- Dept Y expense is 2,000 + 13,500/2 = 2,000 + 6,750 = 8,750
- Dept Z expense is 3,500 + 13,500/2 = 3,500 + 6,750 = 10,250
