Answer: emphasizing processes and tools
Explanation:
Innovation is simply defined as creating, developing and then implementing a new process, product, or service, in order to bring about improvement in effectiveness, efficiency, or competitive advantage.
Emphasizing processes and tools is not a way to encourage and foster innovation.
On January 1, 2011, Deuce Inc. acquired 15% of Wiz Co.'s outstanding common stock for $62,400 and categorized the investment as an available-for-sale security. Wiz earned net income of $96,000 in 2011 and paid dividends of $36,000. On January 1, 2012, Deuce bought an additional 10% of Wiz for $54,000. This second purchase gave Deuce the ability to significantly influence the decision making of Wiz. During 2012, Wiz earned $120,000 and paid $48,000 in dividends. As of December 31, 2012, Wiz reported a net book value of $468,000. For both purchases, Deuce concluded that Wiz Co.'s book values approximated fair values and attributed any excess cost to goodwill. What amount of equity income should Deuce have reported for 2012?
Answer:
$30,000
Explanation:
Calculation for the amount of equity income to reported
Using this formula
Equity income=[(Amount earned in 2012×(Outstanding common stock percentage +Additional percentage of Wiz)]
Let plug in the formula
Equity income = [($120,000 ×(15%+ 10%)]
Equity income = ($120,000 ×25%)
Equity income= $30,000
Therefore the amount of equity income to reported for 2012 will be $30,000
When The demand curve shifts to the right and the supply curve is held constant:______.
A. You see a movement along the demand curve
B. The equilibrium price decreases and the Equilibrium quantity increases
C. The equilibrium price increases and the equiibrium quantity decreases
D. The equilibrium price and quantity increases
E. The equilibrium Price and quantity decrease
Answer:
D. The equilibrium price and quantity increases
Explanation:
When the demand curve shifts to the right and the supply curve is held constant, the equilibrium price and quantity increases.
A rightward shift in the demand curve from D1 to D2 an a supply curve S held constant, the equilibrium price increases from P1 to P2 and equilibrium quantity increases from Q1 to Q2.
Therefore, a shift in demand curve to the right at a constant supply curve will increase equilibrium price and quantity.
See graph attached for more information
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year, it estimated that 80,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firms actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours.Required: a. Compute the predetermined overhead rate. b. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job:Direct Material $38,000Direct Labour Cost $21,000Direct Labour hours worked 280Compute the total job cost for the Xavier Company engagement.
Answer:
Instructions are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (680,000/80,000) + 0.5
Predetermined manufacturing overhead rate= $9 per direct labor hour
Now, the total cost for Xavier:
Direct Material $38,000
Direct Labour Cost $21,000
Direct Labour hours worked 280
Total cost= direct material + direct labor + allocated overhead
Total cost= 38,000 + 21,000 + 280*9
Total cost= $61,520
The predetermined overhead rate is $9
And, the total cost is $61,520
The calculation is as follows:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period ÷ total amount of allocation base
= (680,000 ÷ 80,000) + 0.5
= $9 per direct labor hour
Now, the total cost for Xavier:
Total cost= direct material + direct labor + allocated overhead
Total cost= 38,000 + 21,000 + 280(9)
Total cost= $61,520
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The importance of the product life cycle is that:______.
Answer: B. different stages in the life cycle call for different marketing strategies.
Explanation:
A product goes through different stages in its development when it is first introduced into the market. These stages include the introductory stage, the growth stage, the maturity stage and the decline stage.
Each of these stages will mean a different level of sales for the product which means that the company will have to capitalize on the opportunities offered by each stage in order to market the product in such a way that it will sell. For them to do so though they will need to know what stage the product is at and that is why the Product Life Cycle is important.
Many companies forbid smoking at work. This is an example of a:
a. health insurance policy
b. safety procedure
c. regulation
Milden Company is a merchandiser that plans to sell 43,000 units during the next quarter at a selling price of $60 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $31 per unit sold Advertising expense $187,000 per quarter Sales commissions 6% of sales Shipping expense $45,000 per quarter + $4.00 per unit sold Administrative salaries $97,000 per quarter Insurance expense $10,700 per quarter Depreciation expense $67,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Answer:
1. Contribution format income statement for the next quarter.
Sales (43,000 units × $60 ) $2,580,000
Less Variable Costs
Cost of Goods Sold ( 43,000 units × $31 ) ($1,333,000)
Sales commissions (6% × 43,000 units × $60) ($154,800)
Shipping expense ( $4.00 × 43,000 units) ($172,000)
Contribution $920,000
Less Fixed Costs
Advertising expense $187,000
Shipping expense $45,000
Administrative salaries $97,000
Insurance expense $10,700
Depreciation expense $67,000 ($406,700)
Net Income/ (Loss) $513,300
2. Traditional format income statement for the next quarter.
Sales (43,000 units × $60 ) $2,580,000
Less Cost of Goods Sold ( 43,000 units × $31 ) ($1,333,000)
Gross Profit $1,247,000
Less Expenses
Advertising expense $187,000
Shipping Expense :
Variable Shipping expense $172,000
Fixed Shipping expense $45,000
Administrative salaries $97,000
Insurance expense $10,700
Sales commissions $154,800
Depreciation expense $67,000 ($733,500)
Net Profit / (Loss) $513,500
Explanation:
The contribution format income statement shows the Contribution instead of Gross Profit. Contribution is calculated as Sales less all Variable Costs.
The traditional format income statement shows the Gross Profit instead of Contribution. Gross Profit is calculated as Sales less Cost of Goods Sold.
Which of the following statements is NOT true of a department in the merchandise classification scheme? it is the second level in the merchandise classification scheme. it is at a lower level than the merchandise group in the merchandise classification scheme. it is a level higher than classification in the merchandise classification scheme. the dmm, who manages the department, is responsible for several merchandise classifications. It is managed by a general merchandise manager (GMM).
What is the best definition of elasticity in economics? Elasticity of supply measures how the amount of a good changes when the producer hires more employees. Elasticity of supply measures how the amount of a good changes when the producer uses new materials. Elasticity of demand measures how the amount of a good changes when its price goes up or down. Elasticity of demand measures how the amount of a good changes when its distribution expands.
Answer:
Elasticity of demand measures how the amount of a good changes when its price goes up or down.
Explanation:
bruh
Answer:
so its c
Explanation:
The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound for butter they supply to the market. Below is the current monthly demand and supply schedules for wholesale butter (in millions of pounds per month). Market for Wholesale Butter Price (dollars per pound) Quantity of Butter Demanded (millions of pounds) Quantity of Butter Supplied (millions of pounds) $0.80 107 63 0.90 104 71 1.00 101 79 1.10 98 87 1.20 95 95 1.30 92 103 1.40 89 111 1.50 86 119 1.60 83 127 1.70 80 135 1.80 77 143 Instructions: Round your answer for price to 2 decimal places. Enter your answers for quantity as a whole number. a. What are the equilibrium price and quantity in the wholesale butter market? P = $ Q = million pounds b. What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program? 22 million pounds Zero 79 million pounds 11 million pounds Suppose that a decrease in the cost of feeding cows shifts the supply schedule to the right by 40 million pounds at every price. c. Fill in the new supply schedule given the change in the cost of feeding cow
Answer:
1. Equilibrium price ,p = $1.20 per pound, equilibrium quantity = 95 million pounds.
2. Surplus = 0
Explanation:
1. From the question,
the equilibrium price = 1.20
The equilibrium quantity = 95 million per pounds.
Equilibrium is gotten when Quantity supplied = quantity demanded.
2. When price floor == $1.00
Quantity demanded = 101
Quantity supplied = 79
Monthly surplus = 79 - 101 = -22
Quantity demanded > quantity surplus.
This implies that there is no surplus.
Surplus = 0
3. If a decrease in cost of feeding cows shift supply by 40 million we will have new supply schedule =
New qs = Qs + 40
63+40 = 103
71+40= 111
79+40 = 119
87+40= 127
95 + 40 = 135
103 + 40 = 143
111+40 = 151
119 + 40 = 159
127 + 40 = 167
135 + 40 = 175
143 + 40 = 183
mic exchange and the
2. How does it affect economics in the Philippines?
Answer:
phillipine pget no money
Explanation:
Discriminatory impulses in the labor market can emerge at a number of levels:
A. among managers.
B. among workers.
C. among customers.
D. all of the above.
The top management of a fast-food hamburger chain is considering installing point-of-sale machines that will allow customers to pay for food with a credit card or debit card. Previously, the restaurant has accepted only cash. What information could the management accounting department supply to assist management with this decision?
Answer:
Accounting department plays an important role in implementation of any new system because that the only department which knows each and every points for implementation of new system, here is some of the example of information the accounting department can give to management.
i. Daily turnover of outlets
ii. No of customers expected to pay through ATM card
iii. Cost of installation and operation of new point of sales (POS) system
iv. Savings from new point of sales (POS) system and interest cost saving
Suppose that supply changes such that at each price, 20 fewer towels are offered for sale. In other words, the new supply is now ????S=10P−20QS=10P−20 . Derive and plot the new inverse supply curve by moving the endpoints of the line labeled Supply 2. d. Find the new equilibrium price and quantity using Demand 1 and Supply 2. Equilibrium price: $ Equilibrium quantity: towels
Answer:
1) Correct supply function according to the state information
S=10P−20
Slope 10
2)
Equilibrium
Q = 60
P = $8
missing information:
Demand QD = 100 − 5P
Explanation:
The supply is variable for price and we are given the information that for each price there are 20 fewer towels thus, there is a constant decreased of 20 at each level of the curve.
S' = 10P
S'' = 10
The slope of the curve is 10
Equilibrium of D1 and S2
100 - 5P = 10P - 20
120 = 15P
8 = P
Supplu Quantity = 10 x 8 - 10 = 60
Demand Quantity = 100 - 5 x 8 = 100 - 40 = 60
Samuel's Dad is looking to deposit a sum of money immediately into an account that pays an annual interest rate of 9.00% so that his first-year college tuition costs are provided for. Currently, the average college tuition cost is $12,000 and is expected to increase by 3.00% per year (the average inflation rate). Samuel just turned 3 and is expected to start college when he turns 18. How much money will Samuel's Dad have to deposit into the account
Answer: $5,132.66
Explanation:
If the current tuition costs are $12,000 but increasing at a rate of 3% every year, the cost of tuition in first year when Samuel will be 18 is;
= 12,000 * ( 1 + r) ^ n
= 12,000 * (1 + 3%) ^ (18 - 3)
= $18,695.61
Assuming that the account will pay 9% per year on an investment now, Samuels's Dad will have to pay the present value of the tuition fee discounted at 9%.
= 18,695.61 / ( 1 + 9%) ^ 15
= $5,132.66
Congress passed Sarbanes-Oxley into law as a response to:
Answer:
Financial scandals and corporate fraud
Explanation:
The purchaser of a franchise is called the franchisee.A. TrueB. False
Maria purchased 100 shares of JAX stock for $30 per share and sold this same stock one year later for $29 per share. She paid commissions of $50 when she purchased the stock and $45 when she sold the stock. Dividends of $2 per share were paid during the year. The capital loss on this stock transaction was
Answer:
capital loss = ($195)
Explanation:
Maria's total investment = (100 x $30) + $50 = $3,050
Maria's return from selling the stocks = (100 x $29) - $45 = $2,855
capital loss = $2,855 - $3,050 = -$195
The revenue generated by the dividends is taxed as ordinary income (at a higher rate) and must be considered ordinary gains, not capital gains.
Which 4 statements are correct regarding the QuickBooks Online Receipt Capture feature?
A. The Receipt Capture feature uses Optical Character Recognition (OCR) technology to read and transform receipt data to QuickBooks Online.
B. If QuickBooks Online finds an expense already entered in QuickBooks Online, it will suggest that you match the receipt to the existing transaction.
C. You can snap a picture of a receipt, then review, match, or add it directly from the QuickBooks Online mobile app.
D. QuickBooks Online will fill in the fields it can for the expense using the OCR data.
E. You can assign a payee, account, payment date, category, description, amount, and memo to the expense transaction in the Review screen.
F. You can only have one sender email registered to forward receipts in each company
Answer:
A. The Receipt Capture feature uses Optical Character Recognition (OCR) technology to read and transform receipt data to QuickBooks Online. ⇒ TRUE
B. If QuickBooks Online finds an expense already entered in QuickBooks Online, it will suggest that you match the receipt to the existing transaction. ⇒ TRUE
C. You can snap a picture of a receipt, then review, match, or add it directly from the QuickBooks Online mobile app. ⇒ TRUE
D. QuickBooks Online will fill in the fields it can for the expense using the OCR data. ⇒ TRUE
Explanation:
the other options are false because:
E. You can assign a payee, account, payment date, category, description, amount, and memo to the expense transaction in the Review screen. F. You can only have one sender email registered to forward receipts in each company. ⇒ FALSE, you can connect to multiple accounts, generally for different clients. You can use the "Add new sender" link.Meric Mining Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income after taxes
Answer:
The firm's net income after taxes is $3,830.94.
Explanation:
Net income after taxes refers to the net income obtained after relevant taxes have been deducted from income before taxes. This can be calculated for Meric Mining Inc. by preparing an income statement as follows:
Meric Mining Inc.
Income statement
For the period .....
Particulars $
Sales 15,000.00
Operating costs (7,500.00)
Depreciation (1,200.00)
Income before in interest and taxes 6,300.00
Interest on bond ($6,500 * 6.25%) (406.25)
Net Income before taxes 5,893.75
Taxes ($5,893.75 * 35%) (2,062.81)
Net income after taxes 3,830.94
Therefore, the firm's net income after taxes is $3,830.94.
"Some companies, such as Heinz, can forecast revenues well using pure time series analysis (that is, by extrapolation of prior data, accounting for seasonal effects). Other companies, such as FedEx (which makes money by shipping packages), or Sony (which sells consumer electronics) find that they cannot rely on pure time series analysis for reliable forecasting. They are strongly affected by recessions and need to use theory-based methods, including such explanatory variables as income in their forecasting models. Why are they different from Heinz?"
Answer:
Heinz sells ketchup and other sauces and condiments. Their demand is relatively stable and doesn't change that much year after year. The demand for their products is not that seriously affected by economic recessions or expansions.
On the other hand, Sony is a consumer electronics company and the demand for their products can vary drastically from one year to another. It depends on trends and innovations, and their total sales are affected by disposable income (expansions increase disposable income while recessions decrease it).
FedEx is also affected severely by economic recessions or expansions. Since FedEx ships and transports goods, when the economy is booming, FedEx is doing excellent. But if the economy starts to cool down or enters a recession, the amount of goods transported falls.
Question 8 of 25
Environmental protection laws limit what?
A. Unfair business practices
B. The use of alternative energy sources
C. Anticompetitive behavior
D. The exploitation of natural resources
Answer:
the answer is D. the exploitation of natural resources
Environmental laws place restrictions on exploitation of natural resources. Option D is correct.
What is the purpose of Environmental laws?The main purpose of environmental law is to protect the natural resources like land, air, water, and soil.
Infractions of these laws so that would result in a many number of penalties, and can be sent to jail. These laws mainly focussed in making restrictions on exploration of natural resources.
Therefore, option D is correct.
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Which of the following is most likely to be considered a profit center?
A. The grocery department of a Wal-Mart Supercenter or Target Superstore.
B. The maintenance department of a large retail operation.
C. A stand-alone eye clinic.
D. The personnel office of a business.
E. An individual retail store in a large chain.
Answer:
A. The grocery department of a Walmart Supercenter or Target Superstore
Explanation:
A profit center is a type of business where the business is expected to make into valuable contributions, a profit center can be treated as a separate business of the company. The profits and losses for that center are calculated separately. Examples of profit centers include the store, sales organization, or consulting organization.Hula Products has reintroduced the hula hoop to the world and faces a growing demand for its product in two distinct markets: the United States and Europe. Demand in these markets is: United States: PU = 20 - 0.1QU Europe: PE = 10 - 0.05QE where all quantities are expressed in thousands of units (i.e. QU = 10 should be interpreted as 10 thousand hula hoops). The company has a marginal cost of two dollar per unit in the United States (MCU = $2) and four dollars per unit in Europe (MCE= $4). Finally, the firm has a production limitation or constraint of 96 units (96 thousand hula hoops). How many hoops should be sold in the United States?
Answer:
90 units hoops (90 thousand hula hoops) should be sold in the United States.
Explanation:
Demand function given are indirect demand functions. The total revenue can be obtained by multiplying the indirect demand function my the quantity.
Since we wan to calculate the number of hoops that should be sold in the United States, we therefore have:
TRU = QU(20 - 0.1QU)
TRU = 20QU - 0.1QU^2 ......................... (1)
Where TRU denotes the total revenue in the United States.
The marginal revenue in the United States (MRU) can be obtained by differentiating equation (1) with respect to QU as follows:
MRU = dTRU/dQU = 20 - 0.2QU ............ (2)
Note that in the question, the company has a marginal cost of two dollar per unit in the United States given as follows:
MCU = $2
Since profit is maximized at where marginal revenue is equal to the marginal cost, we therefore equate MRU and MCU and solve for QU as follows:
MRU = MCU
This implies;
20 - 0.2QU = 2
-0.2QU = 2 - 20
-0.2QU = -18
QU = -18 / -0.2
QU = 90
This implies that profit is maximized in the US at 90 units hoops (90 thousand hula hoops).
Therefore, 90 units hoops (90 thousand hula hoops) should be sold in the United States.
Broward Manufacturing recently reported the following information: Net income $384,000 ROA 10% Interest expense $126,720 Accounts payable and accruals $1,000,000 Broward's tax rate is 25%. Broward finances with only debt and common equity, so it has no preferred stock. 40% of its total invested capital is debt, and 60% of its total invested capital is common equity. Calculate its basic earning power (BEP), its return on equity (ROE), and its return on invested capital (ROIC). Do not round intermediate calculations. Round your answers to two decimal places.
Answer:
a. Basic earning power (BEP) = 16.63%
b. Return on equity (ROE) = 26.67%
c. Return on invested capital (ROIC) = 16.87%
Explanation:
From the question, we have the following:
Net income = $384,000
ROA = Return on Asset = 10%
Interest expense = $126,720
Accounts payable and accruals = $1,000,000
Tax rate = 25% = 0.25
Common equity finance percentage = 60%
Debt finance percentage = 40%
From the above, we have:
Total assets = Net income / ROA = $384,000 / 10% = $3,840,000
Net total assets = Total assets - Accounts payable and accruals = $3,840,000 - $1,000,000 = $2,840,000
Common equity = Net total assets * Common equity finance percentage = $2,400,000 * 60% = $1,440,000
Debt = Net total assets * Debt finance percentage = $2,400,000 * 40% = $960,000
Earning before tax = Net income / (1 - Tax rate) = $384,000 / (1 - 0.25) = $384,000 / 0.75 = $512,000
Earning before interest and tax = EBIT = Earning before tax + Interest expense = $512,000 + $126,720 = $638,720
We then proceed as follows:
a. Calculation of basic earning power (BEP)
This can be calculated using the following formula:
BEP = EBIT / Total assets = $638,720 / $3,840,000 = 0.166333333333333 = 0.1663, or 16.63%
b. Calculation of return on equity (ROE)
This can be calculated using the following formula:
ROE = Net income / Common equity = $384,000 / $1,440,000 = 0.266666666666667 = 0.2667, or 26.67%.
c. Calculation of return on invested capital (ROIC)
This can be calculated using the following formula:
ROIC = (EBIT * (1 - Tax rate)) / (Common equity + Debt) = ($638,720 * (1 - 0.25)) / ($1,440,000 + $960,000) = ($638,720 * 0.75)) / $2,840,000 = $479,040 / $2,840,000 = 0.168676056338028 = 0.1687, or 16.87%
Fiori Corporation's relevant range of activity is 4,700 units to 11,500 units. When it produces and sells 8,100 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 3.90 Variable manufacturing overhead $ 2.20 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 0.95 Fixed administrative expense $ 0.85 Sales commissions $ 1.35 Variable administrative expense $ 0.85 The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units is closest to:
Answer:
$12.6
Explanation:
Calculation for incremental manufacturing cost
The incremental manufacturing cost will be the addition of the following :
Direct materials $ 6.50
Direct labor $ 3.90
Variable manufacturing overhead $ 2.20
Incremental manufacturing cost $12.60
Therefore incremental manufacturing cost will be $12.60
Randall purchased an insurance policy and stated he never had heart trouble, but he had a myocardial infarction several years prior to his application. Shortly after the policy was issued, Randall experienced a fatal heart attack. What action is the insurance company likely to take
Answer:
The action the insurance company should take is that they should cancel the insurance policy between them and Randall and return all the premiums paid to date
Explanation:
Here in this question, we are interested in knowing what action the Insurance company will take in the eventuality that Randall experienced a fatal heart attack.
The action the Insurance company will take is that the insurance policy will be canceled and all premiums which have hitherto being paid by Randall will be returned. What we are saying is that the Insurance company will not be liable or held responsible to make payment for the medical costs of the fatal heart attack suffered.
Hence, we can conclude that the Insurance company in this case is not bind by law to pay for the cost of the medical bill and is only to return the premiums already paid by Randall.
Problem 2-18 A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,000 20,000 Labor (hours) 20,000 15,000 Raw materials (currency) $ 20,000 FC* 20,000 Capital equipment (hours) 60,000 5,000 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.)
Answer:
U.S. labor= 5
LDC labor = 1.3
U.S. capital= 1.67
LDC capital = 4
Explanation:
Calculation for both partial labor and capital productivity figures for the parent subsidiary
Calculation for U.S. labor
U.S. labor=100,000/20,000
U.S. labor= 5
Calculation for LDC labor
LDC labor=20,000/15,000
LDC labor = 1.3
Calculation for U.S. capital
U.S. capital=100,000/60,000
U.S. capital= 1.67
Calculation for LDC capital
LDC capital=20,000/5,000
LDC capital = 4
Therefore based on the above calculations we can see that U.S labor productivity is much better because the labor productivity of U.S labor is higher than that of LDC labor and for the capital productivity the LDC is much better because capital productivity of LDC is higher than that of U.S. capital.
What can a cover letter explain that a résumé cannot?
a. Gaps in employment history
b. Reentry into the job market
C. Changes in career focus
d. All of the above
Answer:
D. All of the above.
Explanation:
A central lesson of the Solow model is:______.a. capital accumulation cannot serve as the engine of long-run per capita economic economic growth. b. capital accumulation is the only engine of the long run per capita economic growth. c. consumption is the only engine of short-run per capita economic growth.d. saving rates serve as the engine of long-run per capita economic growth. d. the initial capital stock plays a large part in long run economic growth.
Answer:
c because it show how the economy runs
Alexis want to buy a house in 5 years. She wants to save $75,000 over the next five years for a down payment. If she can earn an annual rate of 9% on her savings, how much must she deposit in equal payments at the end of each month for the next five years to reach her goal
Answer:
the monthly payment is $994.38
Explanation:
For computing the deposit amount made in equal payment for the next five years we need to apply the PMT formula i.e. to be shown in the attachment below:
Given that,
Present value = $0
Future value or Face value = $75,000
RATE = 9% ÷ 12 = 0.75%
NPER = 5 years × 12 = 60 years
The formula is shown below:
= PMT(RATE;NPER;PV;-FV;type)
The future value come in negative
So, after applying the above formula, the monthly payment is $994.38
