Answer:
Ans. Your monthly payments will be $1,602.37 ; The effective annual rate is 5.33%
Explanation:
Hi, first, we need to convert this APR rate into an effective monthly rate, that is, dividing 0.052/12 =0.00433 (or 0.4333%). Then we need to use the following equation and solve for A.
Where:
PresentValue= 84,500
A = periodic payments (the monthly payments that you need to make)
r = 0.004333333
n=60 months
So, let´s solve for A.
Now, in order to find the effective annual rate, we need to use the following equation.
Notice that to find an effective rate you have to start with another effective rate, otherwise it won´t work. So everything should look like this.
Meaning that the equivalent effective annual rate to 5.2% APR is 5.33% effective annual.
Best of luck.
Answer:
$40,500
Explanation:
A Companies Contribution Margin is a product's price minus all associated variable costs, this final value gives the products incremental profit earned for each unit sold. Therefore in this scenario, the Contribution Margin for the company is as follows
(4,500 * $20) - (4,500 * $11)
$90,000 - $49,500
$40,500
Therefore the final Contribution Margin for the company is $40,500 dollars.
I think it's <span>none of the above.</span>
Answer:
C. The cost of plant and equipment is allocated to expense over its useful life.
Explanation:
Depreciation is defined as the fall in value of an asset; how an asset value declines or falls overtime. Causes of depreciation are wear and tear, obsolescence etc.
Depreciation is also a process, where the cost of assets(plants, equipments and machineries) are allocated to expense over their useful life. It is computed as ; cost minus scrap value divided by lifetime [ (Cost - Scrap value)] /life time
