Answer:
Instructions are below.
Explanation:
Giving the following information:
Trailblazer Company sells a product for $210 per unit. The variable cost is $105 per unit, and fixed costs are $588,000.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 588,000/ (210 - 105)
Break-even point in units= 5,600 units
Desired profit= 223,440
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (588,000 + 223,440) / 105
Break-even point in units= 7,728 units
Betsey has completed coursework, one thousand hours of financial counseling experience, passed
examinations, and submitted two letters of recommendation. What is she qualified to receive?
As Betsey has completed coursework, 1000 hours of financial counseling experience, passed examinations and submitted two letters of recommendation; she is qualified to receive certification of being an accredited Financial Counselor.
Who are Financial Counselor?A financial counselor is a professional who can offer educational and emotional support to help you manage your money objectively. They will not assist you in selecting specific investments or making trades on your behalf, but they will assist you in developing a strategy to achieve your financial objectives.
Also, these financial counselors can be especially beneficial if you are experiencing financial difficulties or want to improve your money management abilities.
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Which models of decision making describe how managers actually make decisions?
Generally Non-rational models used to show managers methods of taking decisions.
Non-rational models assume that a genuine situation exists in which decisions must be made.
Non-rational models are commonly employed when there is a lack of information regarding the outcomes of many choices. Management judgments, perception, and personal biases are always used in non-rational models.Learn more:
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Janae has created a table of her company's revenue data. The company sells its products in four cities. Janae's manager told her to create a new
visual showing the share of revenue from each city. Complete the following sentences.
Janae should choose a
to show each city's contribution to the company's total revenue. This type of visual is especially
effective because it allows her to show the revenue from each city as a
of the company's total revenue.
Reset
Next? Does anyone know the answer
Answer:
First one is "Pie Chart"
Second one is "Percentage"
Explanation:
Enjoy
introduction of business presentation on investment: securities
Securities play a vital role in modern investment portfolios, providing individuals and organizations with opportunities to grow their wealth and achieve their financial goals.
Securities are financial instruments that represent ownership or a creditor relationship with a corporation, government, or other organizations. They are tradable assets, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
The primary goal of investing in securities is to generate returns through capital appreciation, income generation, or a combination of both. By investing in securities, individuals and businesses can diversify their portfolios, mitigate risks, and potentially earn higher returns than traditional savings accounts.
Securities offer various advantages to investors. Stocks provide an ownership stake in a company, offering potential capital gains and dividend income. Bonds, on the other hand, represent loans made to governments or corporations and offer fixed interest payments. Mutual funds and ETFs enable investors to pool their money and gain exposure to a diversified portfolio managed by professionals.
Investing in securities requires careful consideration of individual risk tolerance, investment horizon, and financial objectives. It is crucial to conduct thorough research, analyze market trends, and seek professional advice when making investment decisions.
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What two things should Zara keep in mind to make sure that the food her restaurant serves is free of chemical contaminants?
Identify external dispute resolution mechanisms that could be employed to resolve industrial actions if it did eventuate
Based on the available alternative dispute resolution methods, the external dispute resolution mechanisms that could be employed to resolve industrial actions if it did eventuate is Arbitration.
Arbitration is a form of alternative dispute resolution method. It involves the arrangement in which the parties to the disputes, usually contracts, agree to submit issues to an approved independent expert to solve the problem.
The independent expert is known as the arbitrator, and because of his expertise, he is expected to solve the disagreement between the aggrieved parties.
The other method of external dispute resolution is known as litigation, which means settling in court.
Hence, in this case, it is concluded that the correct answer is arbitration and litigation.
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Use Excel sheet and show the formulas:
The TL Corporation currently has no debt outstanding. Josh Culberson, the CFO, is considering
restructuring the company by issuing debt and using the proceeds to repurchase outstanding equity. The
company's assets are worth $40 million, the stock price is $25 per share, and there are 1,600,000 shares
outstanding. In the expected state of the economy, EBIT is expected to be $3 million. If there is a
recession, EBIT would fall to $1.8 million and in an expansion EBIT would increase to $4.3 million.
If the company issues debt, it will issue a combination of short-term debt and long-term debt. The ratio
of short-term debt to long-term debt will be .20. The short-term debt will have an interest rate of 3
percent and the long-term debt will have an interest rate of 8 percent.
1-In your worksheet, fill in the values in each table (current and proposed capital structure).
2-Graph the EBIT and EPS for the TL Corporation on the same graph using a line graph.
3-What is the breakeven EBIT between the current capital structure and the new capital structure?
The breakeven EBIT is given as $25 million
What is a break-even?In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even." Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has "broken even."
Hence, it can be seen that with the data that the company's assets are worth $40 million, the stock price is $25 per share, and there are 1,600,000 shares outstanding, the breakeven are given in the image below.
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Debit cards and credit cards are which type of currency?
commodity money
representative money
fiat money
fake money
Using activity-based costing to make decisions
Dino Dog Collars uses activity-based costing. Dino's system has the following features:
Predetermined Overhead
Activity
Allocation Base
Allocation Rate
Purchasing Number of purchase orders $ 65.00 per purchase order
Assembling Number of parts
0.36 per part
Packaging Number of finished collars
0.25 per collar
Each collar has four parts, direct materials cost is $9.00 per collar, and direct labor cost
is $4.00 per collar. Suppose Animal Hut has asked for a bid on 25,000 dog collars. Dino
will issue a total of 150 purchase orders if Animal Hut accepts Dino's bid.
Requirements
1. Compute the total estimated cost Dino will incur to purchase the needed materials
and then assemble and package 25,000 dog collars. Also compute the cost per collar.
2. For bidding, Dino adds a 40% markup to total cost. What total price will the
company bid for the entire Animal Hut order?
3. Suppose that instead of an ABC system, Dino has a traditional product costing
system that allocates indirect costs at the rate of $9.60 per direct labor hour. The dog
collar order will require 12,000 direct labor hours. What total price will Dino bid using
this system's total cost?
4. Use your answers to Requirements 2 and 3 to explain how ABC can help Dino
make a better decision about the bid price it will offer Animal Hut.
Dino Dog Collars calculates the cost of producing 25,000 dog collars using activity-based costing. The total estimated cost, cost per collar, and bid price are calculated with a 40% markup.
What is the importance of ABC to management decision making?ABC is an accounting methodology that assigns indirect costs to products or services based on the activities that generate those costs. Unlike traditional costing methods, which allocate indirect costs based on a single cost driver, ABC allocates costs based on multiple cost drivers, providing a more accurate picture of a product's or service's true cost. ABC's value to management decision making stems from its ability to provide more accurate and relevant cost information. Managers can use ABC to determine which activities are causing costs, where inefficiencies exist, and how to optimise processes to reduce costs and increase profitability. ABC assists managers in making informed pricing decisions by providing a better understanding of the true cost of products and services.
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Let MAC1 = 100 – 10E and MAC2 = 50 – 10E. Graph each function and compute the aggregate MAC curve. Let MD = 30E, compute the socially efficient equilibrium. For the equations given above, suppose the government sets the pollution level at four units. What are the net social costs of this policy?
Suppose a technological change occurs that reduces the marginal costs of abatement for polluter 1 in the above equation to that of polluter 2. How does this affect the socially efficient level of pollution? Solve numerically and graphically.
If the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not impact the socially efficient level of pollution. The level is still determined by equating Marginal Damage with the Aggregate MAC.
To graph each function, we can plot MAC1 and MAC2 on a graph with the quantity of emissions (E) on the x-axis and the marginal abatement cost (MAC) on the y-axis.
For MAC1: MAC1 = 100 - 10E
For MAC2: MAC2 = 50 - 10E
To compute the aggregate MAC curve, we add the individual MAC curves together. So, Aggregate MAC = MAC1 + MAC2.
Aggregate MAC = (100 - 10E) + (50 - 10E) = 150 - 20E
Now, let's calculate the socially efficient equilibrium by setting the Marginal Damage (MD) equal to the Aggregate MAC.
MD = Aggregate MAC
30E = 150 - 20E
Simplifying the equation, we get:
50E = 150
E = 3
Therefore, the socially efficient equilibrium occurs when the quantity of emissions (E) is 3.
Now, let's calculate the net social costs of the policy when the government sets the pollution level at four units.
Net social costs = Aggregate MAC - MD
Net social costs = (150 - 20(4)) - (30(4))
Net social costs = 110 - 120
Net social costs = -10
The net social costs of this policy would be -10, indicating a net benefit to society.
If a technological change occurs that reduces the marginal costs of abatement for polluter 1 to that of polluter 2, it means that MAC1 will become equal to MAC2.
Setting MAC1 equal to MAC2:
100 - 10E = 50 - 10E
Simplifying the equation, we find that E can have any value, as both sides are equal.
Graphically, this change would mean that MAC1 and MAC2 become parallel lines on the graph, with the same slope and intercept. The socially efficient level of pollution would still be determined by equating MD with the aggregate MAC.
In conclusion, if the marginal costs of abatement for polluter 1 become equal to polluter 2, it does not affect the socially efficient level of pollution. The socially efficient level is still determined by equating the Marginal Damage with the Aggregate MAC, regardless of the marginal costs of individual polluters.
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Why are accounts payable considered to be Current Liabilities?
Accounts payable are considered to be current liabilities because they are expected to be paid within a year (C). Current liabilities are debts or obligations that a company is expected to pay within the current fiscal year or operating cycle. Accounts payable represent money that the company owes to its creditors for goods or services that have been received but have not yet been paid for. Since these debts are typically paid within a short period of time, typically within a month or less, they are classified as current liabilities.
Morrissey Technologies Inc.'s 2021 financial statements are shown here.
Morrissey Technologies Inc.: Balance Sheet as of December 31, 2021
Cash $ 156,000 Accounts payable $ 312,000
Receivables 312,000 Accrued liabilities 156,000
Inventories 624,000 Notes payable 51,800
Total current assets $ 1,092,000 Total current liabilities $ 519,800
Long-term debt 88,000
Fixed assets 1,248,000 Common stock 1,560,000
Retained earnings 172,200
Total assets $ 2,340,000 Total liabilities and equity $ 2,340,000
Morrissey Technologies Inc.: Income Statement for December 31, 2021
Sales $ 3,120,000
Operating costs including depreciation 2,840,428
EBIT $ 279,572
Interest 19,572
EBT $ 260,000
Taxes (25%) 65,000
Net income $ 195,000
Per share data:
Common stock price $ 42.00
Earnings per share (EPS) $ 1.95
Dividends per share (DPS) $ 0.78
Suppose that in 2022, sales increase by 12% over 2021 sales. The firm currently has 100,000 shares outstanding. It expects to maintain its 2021 dividend payout ratio and believes that its assets should grow at the same rate as sales. The firm has no excess capacity. However, the firm would like to reduce its operating costs/sales ratio to 88.5% and increase its total liabilities-to-assets ratio to 35%. (It believes its liabilities-to-assets ratio currently is too low relative to the industry average.) The firm will raise 20% of the 2022 forecasted interest-bearing debt as notes payable, and it will issue long-term bonds for the remainder. The firm forecasts that its before-tax cost of debt (which includes both short- and long-term debt) is 13.5%. Assume that any common stock issuances or repurchases can be made at the firm's current stock price of $42.
The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations.
Download spreadsheet Forecasting Financial Statements-72ce95.xlsx
Construct the forecasted financial statements assuming that these changes are made. What are the firm's forecasted notes payable and long-term debt balances? What is the forecasted addition to retained earnings? Round your answers to the nearest cent.
Morrissey Technologies Inc.: Pro Forma Income Statement for December 31, 2022
Sales $ fill in the blank 2
3494400
Operating costs including depreciation fill in the blank 3
3092544
Earnings before interest and taxes (EBIT) $ fill in the blank 4
401856
Interest fill in the blank 5
Earnings before taxes (EBT) $ fill in the blank 6
Taxes (25%) fill in the blank 7
Net income (NI) $ fill in the blank 8
Dividends $ fill in the blank 9
Addition to retained earnings $ fill in the blank 10
Morrissey Technologies Inc.: Pro Forma Balance Sheet as of December 31, 2022
Assets
Cash $ fill in the blank 11
174720
Receivables fill in the blank 12
349440
Inventories fill in the blank 13
698880
Total current assets $ fill in the blank 14
1223040
Fixed assets fill in the blank 15
1397760
Total assets $ fill in the blank 16
2620800
Liabilities and Equity
Accounts payable $ fill in the blank 17
Accrued liabilities fill in the blank 18
Notes payable fill in the blank 19
Total current liabilities $ fill in the blank 20
Long-term debt fill in the blank 21
Total liabilities $ fill in the blank 22
917280
Common stock fill in the blank 23
Retained earnings fill in the blank 24
Total common equity $ fill in the blank 25
1703520
Total liabilities and equity $ fill in the blank 26
2620800
If the profit margin remains at 6.25% and the dividend payout ratio remains at 40%, at what growth rate in sales will the additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (Hint: Set AFN equal to zero and solve for g.) Round your answer to two decimal places.
%
The sustainable growth rate for Morrissey Technologies Inc. with a 6.25% profit margin and a 40% dividend payout ratio is 8.26%
A measure of a company's strategy for giving shareholders returns is its dividend payout ratio. This ratio demonstrates the amount of profit that can be held back by the business to distribute as dividends to stockholders. The dividends paid out to investors will decrease in size as the dividend payout ratio rises.
A standard metric for determining how much money a firm or specific business activity produces is the profit margin.
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In its first year of operations Best Corp. had income before tax of $540,000. Best made income tax payments totaling $177,000 during the year and has an income tax rate of 30%. What was Best's net income for the year?
Answer:
$378,000
Explanation:
Best Corp. has income before tax of $540,000.
The tax rate is 30%. the amount of tax will be 30% of $540,000.
= 30/100 x $540,000
=0.3 x 540,000
=$162,000
Tax amount = $162,000.
Net income = Income before tax - tax amount
=$540,000 - $162,000
=$378,000
briefly explain how the decision support system resolved the problems experienced by the railways
The decision support system improved the efficiency of the railroads, paying special attention to the punctuality and speed of transportation on both passenger and commercial routes. The Indian Railways encounter a number of difficulties, including the failure to ensure train punctuality.
Ticketless transit by passengers, damage to or theft of railroad property, and others. The railways suffer a considerable loss in income as a result. By December 2023, 100% electrification of the broad gauge is the goal. In 2020–21, the speed of freight trains doubled to 46 kmph from 23 kmph in previous years. In January 2019, all unmanned level crossings on the broad gauge were removed.
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Question 9
A wage is a specific amount of money paid per
Answer:
a wage is a specific amount of money paid per business day
who wants to make a research paper here? i need help guys.
Answer:
I don't want to make sorry
Which measure of central tendency is affected by outliers?
The measure of central tendency that is most affected by outliers is the mean.
The mean is calculated by summing all the values in a dataset and dividing it by the number of data points. However, if there are outliers present in the dataset, which are extreme values that significantly differ from the rest of the data, they can heavily influence the mean.
Outliers have a disproportionate impact on the mean because they contribute to the sum of the values and can pull the mean towards their extreme values.
In summary, while the mean is more susceptible to the influence of outliers, the median and mode are more resistant to their impact and often provide more reliable measures of central tendency in such cases.
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4. During a slow business period, an associate sees a new hire having trouble answering a customer's questions. The customer is ready to leave. What should the
associate do?
O A. Step in and say, "Here, let me help," then ring the sale
OB. Approach them and ask, "Can I help answer any questions?
OC. Alert the manager that the new hire needs help
D. Watch without interrupting and advise the new hire after the customer leaves
In this situation, the most appropriate course of action for the associate would be to choose option B: Approach them and ask, "Can I help answer any questions?"
In this situation, the most appropriate course of action for the associate would be to choose option B: Approach them and ask, "Can I help answer any questions?" By approaching the new hire and offering assistance, the associate demonstrates teamwork and a willingness to support colleagues. This approach allows the new hire to handle the customer interaction directly, gain experience, and build confidence. However, the associate's presence and offer to help signal that they are available to step in if needed. Interrupting the interaction completely, as in option A, may undermine the new hire's ability to learn and handle customer inquiries independently. It is essential to strike a balance between providing support and allowing the new hire to develop their skills. Option C, alerting the manager, should be reserved for situations where the new hire is struggling consistently or if the customer's concerns are not being addressed. It is generally more effective to offer immediate assistance before involving higher-level management. Option D, watching without interrupting and advising the new hire afterward, misses the opportunity to salvage the customer's experience in real-time. Addressing the customer's concerns promptly and preventing them from leaving is crucial for maintaining customer satisfaction and loyalty. In summary, approaching the new hire and offering assistance while the customer is still present (option B) strikes a balance between supporting the new hire and ensuring a positive customer experience.
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why is it important to understand the competition your business faces?
Answer:
It can help you to make your products, services and marketing stand out. You can use this knowledge to create marketing strategies that take advantage of your competitors' weaknesses, and improve your own business performance.
Give two examples of potential trade-offs of a high real GDP per capita
"Trade-off" is used in economics to mean the fact that budgeting inevitably involves letting go some of X to get more of Y. Read below about the examples of potential trade-offs.
What are the examples of potential trade-offs of a high real GDP per capita?The following are the examples of potential trade-offs of a high real GDP per capita:
Somebody giving up the intent to see a movie to reading for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.A business owns its building. If the organisation moves, the building could be rented to another. The opportunity cost of staying there is the amount of rent the organization would get.Therefore, the correct answer is as given above
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stock price for vinyl record player?
To give you an idea the stock price, beginner to advanced record player installations can range from $50 to $450, depending on a number of variables.
What is current stock price?It is the latest trading price for a share of stock or any other security. The present price serves as the starting point in an open market. It shows the price that a buyer and seller would be prepared to accept for a later transaction involving that security.The current price is only an indication and not a promise. The future sale price on an exchange is not determined by the present price. The security's price will fluctuate over time as supply and demand factors change.Using the current value accounting method, assets are valued at their replacement cost rather than their initial cost.Cash price is the same as current price because it refers to the most recent quoted price on an exchange.Learn more about current stock price refer to :
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true or false : The computations involved in the net present value method of analyzing capital investment proposals are less involved than those for the average rate of return method.
False: The calculations needed to analyze capital investment proposals using the net present value approach require less work than those needed to do so using the average rate of return method.
The present value is the estimated cash flows' value in today's money after discounting or taking the discount rate out. If the result, or present value of the cash flows, is more than the rate of return from the discount rate, then the investment is worthwhile.
The best course of action is option an. Internal rate of return. When evaluating potential capital investment projects, the internal rate of return is determined using the present value concept in capital budgeting.
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Does dyson company use the line extension?
Answer:yes
Explanation:
Line extinctions is making a product with the same brand and category type example different Dyson vacuums
Hope this helps
For Ruger Corporation, we will assume 750 of the 1,000 gold medallions in Job
A were shipped to customers by the end of the month for total sales revenue of
$225,000. Because 1,000 units were produced and the total cost of the job
from the job cost sheet was $158,000, the unit product cost was $158. WHAT The
following journal entries would recorded?
Answer:
hsjs
hshsjsoa
sjieieiw
Which of the following best explains what a futures contract is?
a. a contract preventing the future sale or exchange of a particular good
b. a contract limiting the future liability of one set of partners if a business fails
c. a contract setting the price for the exchange of two foreign currencies
d. a contract setting the price and date for a commodity purchase
Answer:
d. a contract setting the price and date for a commodity purchase
How Credit Works
Quiz Active
23
Interest rates on credit cards
O can be paid annually.
change with the balance.
decrease with early payment.
can vary widely.
Credit refers to the borrowing of money with an understanding of paying it back at a later date with interest. Interest rates on credit cards can vary widely. It’s important to shop around and find a credit card that has a low interest rate and favorable terms. The correct option is d.
It’s a way to finance goods and services when you don’t have the money upfront. Credit scores are a way for financial institutions to assess how likely it is that someone will pay back their debts. It’s an important factor in getting approved for loans and credit cards. Interest rates on credit cards can vary widely. Some people may qualify for a lower interest rate if they have a high credit score or a history of paying their debts on time.
Others may receive higher interest rates if they have a low credit score or have defaulted on payments in the past.The interest rate on a credit card can be paid annually. This means that the interest is calculated at the end of the year and added to the balance owed.
Interest rates can decrease with early payment. If you pay off your credit card balance early, you may be able to avoid some of the interest charges. It’s important to read the terms and conditions of your credit card to see if this is an option.Finally, it’s important to note that interest rates on credit cards can vary widely. It’s important to shop around and find a credit card that has a low interest rate and favorable terms. The correct option is d.
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since noah is worried about completing his research project on time, the most helpful thing he could do is to choose a topic that
a. is broad
b. he has no interest in
c. is easy to research
d. he knows very little about
Answer:
c
Explanation:
They since Noah is worried about completing his research project on time, the most helpful thing he could do is to choose a topic that is easy to research. Thus, option (c) is correct.
What is research?The term “research” refers to generating and creating new ideas with the help of previous studies and phenomena. Using primary valid sources that have already been published on a subject that is related For example, journals, articles, population data, and historical events are based.
According to the case, Noah is worried about completing his research project. It was the necessary to decide the appropriate significance topic related to the research interested. The topic was the known to the easy to the search a matter and the completing her project.
As a result, the significance of the research are the aforementioned. Therefore, option (c) is correct.
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5.24 The United States Golf Association requires that the weight of a golf ball must not exceed 1.62 oz.The association periodically checks golf balls sold in the United States by sampling specific brands stocked by pro shops....
The probability that none of the randomly selected golf balls exceed 1.62 oz in weight will be 0.7857.
How to calculate probability?It should be noted that probability simply means the likelihood of the occurence of an event.
From the table given, the probability that none of the randomly selected golf balls exceed 1.62 oz in weight will be 0.7857.
The probability that at least one of the randomly selected golf balls exceed 1.62oz will be:
= 1 - 0.7857
= 0.2143
The probability of x is being greater than or equal to 3 will be 0.9999.
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match each of the following characteristics or scenarios with either the term negative externality or the term positive externality. a. resources are overallocated: (click to select) b. tammy installs a very nice front garden, raising the property values of all the other houses on her block: (click to select)
a. Overallocation of resources: Negative externality. Overallocation of resources is an inefficient use of resources that results in a net social loss. This is an example of a negative externality because it results in the inefficient use of resources and a net social loss.
b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block: Positive externality. Tammy's investment in her front garden creates a benefit for her neighbors as well, as it raises the value of their property. This is an example of a positive externality because it creates a benefit for those who are not directly involved in the investment.
c. Market demand curves are too far to the left (too low): Negative externality. A market with low demand is an inefficient market as resources are not being optimally allocated. This is an example of a negative externality because it leads to inefficient use of resources and a net social loss.
d. Underallocation of resources: Negative externality. Under allocation of resources is an inefficient use of resources that results in a net social loss. This is an example of a negative externality because it results in the inefficient use of resources and
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Complete question:
Match each of the following characteristics or scenarios with either the term negative externality or the term positive externality.
a. Overallocation of resources: (Click to select)Positive externalityNegative externality.
b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block: (Click to select)Negative externalityPositive externality.
c. Market demand curves are too far to the left (too low): (Click to select)Positive externalityNegative externality.
d. Underallocation of resources: (Click to select)Positive externalityNegative externality.
e. Water pollution from a factory forces neighbors to buy water purifiers: (Click to select)Negative externalityPositive externality.
C. Imagine you Deposit K10, 000 every six months for the next five years at an interest rate of 10% per annum. You would want to know what this value will be at the end of the period.
Required:
i. Using simple interest (5 Marks)
ii. Using compounded interest (5 Marks)
iii. If the deposits were made at the beginning of every six months (5 Marks)
iv. If the deposits were made at the end of every six months (5 Marks
i) Using simple interest, if the deposits were made at the beginning of every six months, the ending (future value) would be K127,500.
ii) Using simple interest, if the deposits were made at the end of every six months, the ending (future value) would be K122,500.
iii) Using compounded interest, if the deposits were made at the beginning of every six months, the ending (future value) would be K132,067.87.
iv) Using compounded interest, if the deposits were made at the end of every six months, the ending (future value) would be K125,778.93.
What differentiates simple interest from compound interest?The difference between simple interest and compound interest is that simple interest is only based on the principal.
On the other hand, compound interest computes interest on both the principal and accumulated interest.
Simple Interest (Deposits at Beginning):Period Principal Interest Balance
1 K10,000 K500 K10,500 (K10,000 + K500)
2 20,000 1,000 21,500 (K10,500 + K10,000 + K1,000)
3 30,000 1,500 33,000
4 40,000 2,000 45,000
5 50,000 2,500 57,500
6 60,000 3,000 70,500
7 70,000 3,500 84,000
8 80,000 4,000 98,000
9 90,000 4,500 112,500
10 100,000 5,000 127,500
Simple Interest (Deposits at Ending):Period Principal Interest Balance
1 K10,000 K0 K10,000
2 20,000 500 20,500 (K10,000 + K10,000 + K500)
3 30,000 1,000 31,500
4 40,000 1,500 43,000
5 50,000 2,000 55,000
6 60,000 2,500 67,500
7 70,000 3,000 80,500
8 80,000 3,500 94,000
9 90,000 4,000 108,000
10 100,000 4,500 122,500
Compound Interest at Ending:N (# of periods) = 10 (5 x 2)
I/Y (Interest per year) = 10%
PV (Present Value) = K0
PMT (Periodic Payment) = K10,000
Results:
FV = K125,778.93
Sum of all periodic deposits = K100,000 (K10,000 x 2 x 5)
Total Interest = K25,778.93
Compound Interest at Beginning:N (# of periods) = 10 (5 x 2)
I/Y (Interest per year) = 10%
PV (Present Value) = K0
PMT (Periodic Payment) = K10,000
Results:
FV = $132,067.87
Sum of all periodic deposits = K100,000 (K10,000 x 2 x 5)
Total Interest = K32,067.87
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