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cupoosta [38]
3 years ago
11

Evelyn invests $5,000 in a savings account that pays interest at a rate of 6.7% compounded annually. If she withdraws half the i

nterest earned at the end of the third year, approximately how much additional interest does she earn during the fourth year
Business
1 answer:
My name is Ann [436]3 years ago
8 0

Answer:

$371

Explanation:

The computation of additional interest during the fourth year is shown below:

but before that we need to do the following calculations

Amount = Principal × (1 + (rate of interest ÷ (1 × 100)))^(1 × number of years)

A = $5,000 × (1 + (6.7% ÷ (1 × 100)))^(1 × 3)

= $5,000 × (1 + (6.7 ÷ 100))^(1 × 3)

= $5,000 × (1 + 0.067)^3

= $5,000 × (1.067)^3

= 5000 × 1.214

= $6,070

Now, Interest gained after 3 years on the amount of Principal is

= $6,070 - $5,000

= $1,070

Here Evelyn issued interest which is half that is earned at the end of the 3rd year

Sp,

Half of the interest gained will be

= $1,070 ÷ 2

= $535

Now,

The new Principal amount for 4th year is

= $6,070 - $535

= $5,535

So, the final amount in the fourth year is

A = P × (1 + (r ÷ n))^(nt)

= $5,535 × (1 + 0.067 ÷ 1 ]^(1 × 1)

= $5,535 × 1.067

= $5.905.845

Hence the additional interest in the fourth year is

= $5,905.845 - $5,535

= $370.845

or

= $371

Therefore for computing the additional interest during the fourth year we simply applied the above formula.

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Which type of global marketing strategy works best when consumers share the same desires, needs, and uses for a product across c
sdas [7]
Product extension is a global marketing strategy that works best when consumers share the same desires, needs, and uses for a product across countries and cultures. 

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7 0
3 years ago
Saint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit s
photoshop1234 [79]

Answer:

$33,500

Explanation:

Relevant data provided

Total Credit Sales = $670,000

Percentage of bad debts = 5%

The computation of Bad Debt Expense is shown below:-

Bad Debt Expense = Total Credit Sales × Percentage of bad debts

= $670,000 × 5%

= $33,500

Therefore for computing the bad debt expenses we simply multiply the total credit sales with percentage of bad debts.

5 0
3 years ago
Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,600,000, with an addit
Lorico [155]

Answer:

These are the missing multiple choices:

a. $3,780,000, b. $4,212,000, c. $720,000

The correct option is A,$3,780,000

Explanation:

The  total cost of Martson's new equipment comprises of the invoice price of the equipment of $3,600,000 plus the cost of installation and shipping costs of $180,000.

The rationale for the shipping and installation is that costs of asset should include costs incurred in bringing the asset to its present location and condition such as installation and shipping costs.

The costs of the assets is $3,780,000($3,600,000+$180,000)

8 0
3 years ago
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