A retailer owes a wholesaler $500,000 due in 45 days. If the payment is 15 days late,
Question:
If the payment is 15 days late, there is a 1% penalty charge. The retailer can get a 45-day certificate of deposit (CD) paying 6% or a 60-day certificate paying
7%. Is it better to take the 45-day certificate and pay on time or to take the 60-day certificate and pay late with the penalty?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
45 day note I 500000 006 45 360 37...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Question Posted:
Students also viewed these Calculus questions
-
a. Determine the amount of potatoes and green beans Maria should purchase each week for the casserole to minimize the ingredient costs while meeting nutritional, taste, and demand requirements....
-
A retailer buys bushels of mushrooms for $2 each and sells them for $5 each. The quality of the mushrooms begins to decline after the first day they are offered for sale; therefore, to sell the...
-
A retailer purchases a batch of 1000 fluorescent light bulbs from a wholesaler at a cost of $2 per bulb. The wholesaler agrees to replace each defective bulb with one that is guaranteed to function...
-
To meet the demand for parking, your town has allocated the area shown here. As the town engineer, you have been asked by the town council to find out if the lot can be built for $11,000. The cost to...
-
Two ships moving in parallel paths close to one another risk colliding. Why?
-
Sam, not married and does not maintain a home for a dependent, has $ 5 0 , 0 0 0 salary and $ 5 , 0 0 0 qualified dividends. Sam has itemized deductions of $ 1 4 , 0 0 0 . Compute Sam\'s total tax...
-
The diathermal wall (a) Is incapable of exchanging heat with the surroundings (b) Permits the full flow of heat from the system to the surroundings and vice versa (c) Both (a) and (b) (d) None of...
-
Various types of accounting changes can affect audit reporting. AICPA auditing standards indicate that an emphasis-of-matter explanatory paragraph should be included when accounting principles have...
-
Pressure What phase transition is indicated by the arrow shown in the phase diagram below? Temperature
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
How long does it take for $8500 invested at 11% annual simple interest to be worth $13,000?
-
An investor owns several apartment buildings. The taxes on these buildings total $30,000 per year and are due before April 1. The late fee is 1 2% per month up to 6 months, at which time the...
-
Using either Big Lots, Inc. most current Form 10-K or the companys annual report, answer the questions below. To obtain the Form 10-K use either the EDGAR system following the instructions in...
-
You deposit $3000 in an account earning 4% interest compounded monthly. How much will you have in the account in 15 years? $
-
Suppose you want to have $600,000 for retirement in 25 years. Your account earns 5% interest. How much would you need to deposit in the account each month? Submit Question
-
What is the difference between HTML and XML, how can attackers make use of XML to attack a server?
-
You have $300,000 saved for retirement. Your account earns 9% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years? $ Submit Question
-
You can afford a $400 per month car payment. You've found a 5 year loan at 7% interest. How big of a loan can you afford? $ Submit Question
-
Yesterday, you sold six-month futures on the German DAX stock market index at a price of 13,200. Today, the DAX closed at 13,150 and DAX futures closed at 13,250. You get a call from your broker, who...
-
Hotel Majestic is interested in estimating fixed and variable costs so that the company can make more accurate projections of costs and profit. The hotel is in a resort area that is particularly busy...
-
Find the first and second derivatives of the following function and use them to sketch a graph. f(x) = 1/x2 for 0 < x 2.
-
Find the first and second derivatives of the following function and use them to sketch a graph. f(x) = 10x2 - 50x for -5 x 5.
-
Find the first and second derivatives of the following function and use them to sketch a graph. f(x) = x - x2 for 0 x 1.
-
The firm's production function tell you if a twofold (threefold, etc) increase in all inputs increases output by less than twofold (less than threefold, etc.). Based on this information answer the...
-
After participating in the Application Based Activity (ABA) on the case involving allegations of fraud against the owner of a dating website, I judged the case in favor of the defendant. My decision...
-
In the United States, there are laws that forbid employers from discriminating against working mothers or employees who are pregnant. They are called "Family Responsibilities Discrimination" laws, or...
Study smarter with the SolutionInn App