The situation in which consumers are presented with so much information that they cannot assimilate it all is known as ____

You need to accumulate $10,000. To do so, you plan to make deposits of $1,000 per year - with the first payment being made a yea

evablogger [386]

Answer:

It will take 6.68 years to reach the $10,000 goal.

Explanation:

As the deposit of $1,000 per year is a form of the annuity payment.

We will use the following formula in order to calculate the numbers of year required to reach the goal

Future value of Annuity = Annuity payment x ( ( ( 1 + interest rate )^numbers of years ) - 1 ) / Interest rate

Where

Future value of Annuity = Target amount = $10,000

Annuity payment = Yearly deposti = $1,000

Interest rate = 14%

Numbers of years = n = ?

Placing values in the formula

Future value of Annuity = Annuity payment x ( ( ( 1 + interest rate )^numbers of years ) - 1 ) / Interest rate

$10,000 = $1,000 x ( ( ( 1 + 14% )^n ) - 1 ) /14%

$10,000 x 14% = $1,000 x ( ( ( 1.14 )^n ) - 1)

$1,400 = $1,000 x ( ( ( 1.14 )^n ) - 1)

$1,400 / $1,000 = ( ( 1.14 )^n ) - 1

1.4 = ( ( 1.14 )^n ) - 1

1.4 + 1 = 1.14^n

2.4 = 1.14^n

Log 2.4 = n x Log 1.14

n = Log 2.4 / Log 1.14

n = 6.681525965

n = 6.68 years

It will take 6.68 years to reach the $10,000 goal.

7 0

3 years ago

Facing stiff competition in the e-reader market, Sumac Industries wants to protect its competitive advantage by increasing the p

azamat

Answer:Highlight celebrities who use Sumac e-readers.

Explanation:

According to the question, due to tough competition in market regarding the e-reading product , Sumac industries wants that they can have superior position in e-reader market than other e-reader business organizations.Thus,they want a secure position for their company.

A good strategy for maintaining their position can be done through putting spot-light on the celebrity users of Sumac e-reader.This will be highlighted among celebrity fans or followers and general customers. It will promote or inspire people to purchase Sumac e-reader more as celebrities are using their product.

6 0

3 years ago

Templeton Corporation recently used $75,000 of direct materials and $9,000 of indirect materials in production activities. The j

maksim [4K]

Answer:

A Debit to manufacturing overhead for $9,000

Explanation:

Based on the information given in a situation where the Corporation recently used the amount of $9,000 of indirect materials during the production activities which means that The journal entries that will reflect these transactions would include a DEBIT to MANUFACTURING OVERHEAD of the amount of $9,000 which is the amount of indirect materials that was used during the production activities

A debit to manufacturing overhead for $9,000

3 0

3 years ago

On November 1, 2017, Blue Company borrowed from Yellow Bank and received a 9-month note for $60,000 at a 5% interest rate. Inter

frutty [35]

Answer:

In the books of Blue Company:

November 1, 2017:

Debit Cash $60,000

Credit Note payable $60,000

(To record borrowed note from Yellow Bank)

December 31, 2017:

Debit Interest expense $500

Credit Interest payable $500

(Interest expense recognition on note for 2 months)

August 1, 2018:

Debit Note payable $60,000

Debit Interest payable $2,250

Credit Cash $62,250

(To record settlement of note at maturity)

In the books of Yellow Bank:

November 1, 2017:

Debit Note receivable $60,000

Credit Cash $60,000

(To record note receivable from Blue Company)

December 31, 2017:

Debit Interest receivable $500

Credit Interest revenue $500

(Interest revenue recognition on note for 2 months)

August 1, 2018:

Debit Cash $62,250

Credit Note receivable $60,000

Credit Interest receivable $2,250

(To record note collection at maturity)

Explanation:

Note receivable is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest expense / revenue on the notes is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense / revenue is $60,000 x 5%/12 x 9 months = $2,250.

Monthly interest expense / revenue is therefore $2,250 / 9 months = $250.

Therefore, interest expense / revenue recognition for 2 months will be $250 x 2 months (November 1 - December 31) = $500.

8 0

3 years ago

A customer sells short 100 shares of ABC stock at $74 per share. The stock falls to $66, at which point the customer writes 1 AB

Gekata [30.6K]

Answer: $62

Explanation:

The customer sold the stock short at $74 per share. Later on, the customer sold a Sept 65, Put at $3 on this stock. If the short put is exercised, the customer is obligated to buy the stock at $65 per share. Since the customer received $3 in premiums when the put was sold, the net cost to the customer is $62 per share for the stock (this is the cost basis in the stock for tax purposes). The stock that has been purchased is delivered to cover the short sale, closing the transaction. The customer's gain is: $74 sale proceeds - $62 cost basis = 12 point gain.

4 0

3 years ago

The situation in which consumers are presented with so much information that they cannot assimilate it all is known as _____.