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allsm [11]
2 years ago
14

If you have a choice to earn simple interest on $10,000 for three years at 8% or annually compounded interest at 7% for three ye

ars which one will pay more and by how much approximately?
a. Simple interest by $50.00
b. Compound interest by $22.97
c. Compound interest by $150.75
d. Compound interest by $150.00
e. None of the above.
Business
1 answer:
Zielflug [23.3K]2 years ago
7 0

Answer:

e. non of the above

Explanation:

we first find the simple interest

= p * r * t

= 10000*8%*3

= 2400

the future value

= 2400 + 10000

= 12400

we find the compound interest

= 10000*(1+r)^n

= 10000(1+7%)³

= 10000*1.225043

= 12250.43

we can see that it pays more at 12400 compared to compound interest of  12250.43

the difference = 12400 - 12250.43

= 149.57

therefore the answer is e

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Nikolay [14]

Answer:

(B) Just-in-time inventory system

Explanation:

*Just-in-time inventory system" is a system used to cut costs such as holding or storage costs and it improves efficiency and reduces wastage as some products may be damaged during storage.

This system involves quick delivery of the required quantity of goods to stores right when they are needed and just before they go out of stock. It helps to eliminate the cost of storage that would result if goods are purchased in large quantities.

3 0
3 years ago
Eagle Corporation solicited bids for various parts it uses in the manufacture of jet engines. Eagle received six offers and sele
Anna71 [15]

Answer:

The answer is: C) Have as its only remedy the right to recover dollar damages.

Explanation:

Since Sky breached its contract with Eagle, Eagle can sue Sky for money damages.  

They can not seek a writ of replevin since the 100,000 units included in the contract were not unique nor identified. They were part of a much larger production lot of 200,000 units intended for various customers.

They also can't seek to obtain specific performance due to the same reasons as before, the units were not specific nor identified and other customers also need them.

5 0
3 years ago
You just won a state lottery! The lottery offers you a choice: you may choose a lump sum today, or $89 million in 26 equal annua
deff fn [24]

Answer:

the lump sum that would equal the present value of the annual installments is $38,163,612

Explanation:

The computation of the lumspum amount is as follows;

= Cash flow × (1 - (1 + rate of interest)^-number of years) ÷ rate of interest)

= $89 million × (1 - (1 + 0.0765)^-26) ÷ 0.0765)

= $38,163,612

Hence, the lump sum that would equal the present value of the annual installments is $38,163,612

Therefore the above is calculated by applying the given formula

7 0
3 years ago
Loran's pretax accounting income in 20X1 is $100,000. Loran had bad debt expense for financial reporting purposes of $14,000 in
stira [4]

Answer:

$2,800

Explanation:

Particulars                                                                       Amount

Favorable temporary difference at the end of 20X2   $7000

* Income tax rate                                                             <u>   40%  </u>

Deferred tax asset account at the end of 20X2         <u>$2,800</u>

6 0
3 years ago
Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) wha
Elena-2011 [213]

Answer:

The correct answer is the option B: clear financial goals and expectations.  

Explanation:

To begin with, before a new product is developed a company must follow a precise protocol in which the marketing mix plan is already established and therefore once that the company states the 4Ps of their marketing mix, it establishes the features of the product including characteristics of what it will be and do; the target audience including the costumers' preferences, needs and wants; the distribution channels and the promotion strategy.

To continue, <u><em>the protocol must establishes clear financial goals and expectations</em></u> in order to know how much is available to spend and how much of time will it take to create the product and to obtain the return of investment as well. Therefore, once that the marketing mix is established, the company needs to have in mind their expectations and expenditures.

5 0
3 years ago
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