Answer:
The correct answer is C: $4300
Explanation:
Giving the following information:
They will invest an equal amount each month for 5 years.
This account will earn 6% per year(0.5% per month)and will have $300,000 at the end of the 5-year term
We need to use the following formula:
final value= {A[(1+i)^n-1]}/r
A= cuota
i= monthly interest
n= 60 months
Isolating A:
A= (FV*i)/[(1+i)^n-1]
A= (300000*0.005)/[(1.005^60)-1]
A= 1500/0.34885= 4300
Answer:
Req 1 15 $ cost per call
Req 2 Delux = 6,750$ and Basic 2,250$.
Explanation:
This question has two requirement one is to determine the company's cost of technical support per customer service call (Req 1) and the other is to assign technical support cost to each model using activity based costing (Req 2).
Req 1
The first requirement is quite simple. Cost of technical support per customer service call can be determine by dividing expected cost with expected number of customer service call we can get our answer
Cost per CSC =150000/10000 = 15
Req 2
Activity-based costing (ABC) is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
In this question company has two product i.e delux and basic model. Cost for each product can be determine by multplying cost per csc with number of call received for each product.
Delux= 450*15 = 6750
Basic= 150*15 = 2250
Answer:
3.05%
Explanation:
According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.
Mathematically,
(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1
Here,
r2,0 is the rate of interest for 2 year treasury security from today
r1,0 is the rate of the interest for 1 year treasury security from today
r1,1 is the rate of the interest for 2 year treasury security from Year 1
By Putting Values, we have:
(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1
(1 + r2,0)^2 = 1.06184
By taking square-root on both sides, we have:
(1 + r2,0) = 1.0305
r2,0 = 3.05%
Answer:
c. Are the excess of the book value over the cash proceeds.
Explanation:
The property, plant, and equipment are classified as the fixed assets which are reported in the asset side of the balance sheet
If the cash sales of property, plant, and equipment are sold more than the book value then it would be the gain.
But if the cash sales of property, plant, and equipment is sold less than the book value than it would be the loss to the company.
The annual exempt amount applies to the earnings of each non-grace taxable year prior to the year of full retirement age, as defined
