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Anni [7]
3 years ago
11

Suppose you are committed to owning a $215,000 ferrari. if you believe your mutual fund can achieve an annual return of 10.8 per

cent, and you want to buy the car in 9 years on the day you turn 30, how much must you invest today? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
Business
1 answer:
Pie3 years ago
6 0

Answer: I must invest <u>$85424.14</u> today in order to buy a Ferrari nine years from now on the day I turn 30.

We have

Price of the Ferrari nine years from now (Future Value - FV)    $215000

Expected Rate of return on the mutual fund (r)    10.8%

Time until I turn 30  (n)   9 years

We can calculate the Present Value (PV) or the money to be invested today as

\mathbf{PV = \frac{FV}{(1+n)^{n}}}

PV = \frac{215000}{(1+0.108)^{9}}

\mathbf{PV = 85424.14022}

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5 0
2 years ago
Oriole Company has the following inventory data:
Yuliya22 [10]

Answer:

$3,942

Explanation:

Step 1 : Determine number of units sold

Units Sold = Total units available for sale - Units remaining in inventory

                  = (45 + 157 + 22) - 56

                  = 168 units

Step 2 : Determine Cost of goods sold

<em>FIFO assumes that the units to arrive first will be sold first.</em>

Cost of goods sold = (45 units x $22) + (123 units x $24)

                               = $3,942

The amount allocated to cost of goods sold for July is: $3,942

7 0
2 years ago
Parts of the retail industry in which a small number of businesses control a large portion of the market represent __________.
solniwko [45]

The answer to your question is "Oligopolies."

An oligopoly is a market form where a market is controlled by a few large sellers or businesses.  The type of market is going to effect the price in one of two ways.  The first possibility is that the few businesses will work together, or collude, in order to establish higher than normal prices.  The second possibility is that there will be fierce competition between the few sellers, which will result in a high level of competition and lower prices.

8 0
3 years ago
Beth sells candles from her website. She can get a candle from her suppliers at a cost of $3 to her. The candles have been selli
statuscvo [17]

Answer:

$10.67

Explanation:

Data provided in the question:

Initial cost = $3

Initial selling cost = $5

Initial sales = 4000

with $1 increase in price she loses 300 sales per month

Now,

Let the increase in price which maximizes the profit be '$x'

Therefore,

Final selling price = $5 + x

Final sales = 4000 - 300x

Thus,

Revenue = Final selling price × Final sales

= ( 5 + x)( 4000 - 300x)

= 20,000 - 1500x + 4000x - 300x²

= 20,000 + 2500x - 300x²

Total Cost = Initial cost × Final sales

= 3(4000 - 300x )

= 12,000 - 900x

Now,

Profit = Total revenue - Total cost

or

P = [ 20,000 + 2500x - 300x² ] - [ 12,000 - 900x ]

or

P = 8,000 + 3400x - 300x²

for point of maxima \frac{dP}{dx}=0

Thus,

0 = 0 + 3400 - 300(2x)

or

0 = 3400 - 600x

or

600x = 3400

or

x = \frac{17}{3}

Hence,

The price will be = $5 + x = 5 + \frac{17}{3}

= $10.67

7 0
3 years ago
Rivals would find it difficult to challenge atlas door in the short run because of high threat of substitution. low buyer switch
elena55 [62]

The reason why it is difficult for Rivals to challenge atlas door is probably because of the high threat of substitutes in which the rival fears that the atlas door will replace them and send them off out of the business when they are overpowered by the other party.

8 0
3 years ago
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