To settle a $570 invoice, Anna can pay $560 now or the full amount 60 days later.
Question:
To settle a $570 invoice, Anna can pay $560 now or the full amount 60 days later.
a. Which alternative should she choose if money can earn 10.75%?
b. What rate would money have to earn for Anna to be indifferent between the two alternatives?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (11 reviews)
a If she waits to pay the 570 in 60 days from now that o...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
Question Posted:
Students also viewed these Mathematics questions
-
Anna is indifferent between receiving $200 today or $230 in a month. What does this imply about her opportunity cost in the coming month? How much interest would Anna need to charge to lend $200 for...
-
Anna Company is considering two alternatives. Alternative A will have sales of $150,000 and costs of $100,000. Alternative B will have sales of $185,000 and costs of $125,000. Compare alternative A...
-
What amount should be accepted as equivalent, 60 days before an obligation of $1480 is due, if money can earn 6 %?
-
11) Wayland Manufacturing uses a normal cost system and had the following data available for 2010: Direct materials purchased on account Direct materials requisitioned 82,000 Direct labor cost...
-
Determine the total temperature for the following substances flowing through a duct: (a) Helium at 180 kPa, 40oC and 250 m/s, (b) Nitrogen at 180 kPa, 40oC and 250 m/s, and (c) Steam at 3 MPa, 300oC...
-
Write the Roman numeral as a HinduArabic numeral. MCMLXIV
-
The plot in question 5 has a peak at 7,200 cpm. It appears to almost disappear when the motor power (60 Hz) is cut for the capture of the coast-down. Why?
-
The English Garden Shop is a retail store that sells garden equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for July are listed on the next page. The...
-
Let sequence (an) be -8, -3, 2, 7, ... (a = -8) a. Find recursive formula for an. b. Find explicit (iterative) formula for an
-
Jimmy owns a garden in which he has planted N trees in a row. After a few years, the trees have grown up and now they have different heights. Jimmy pays much attention to the aesthetics of his...
-
Peter and Reesa can book their Horizon Holiday package at the early-booking price of $3900, or wait 4 months and pay the full price of $3995. a. Which option should they select if money can earn a...
-
Abbey owed $162.50 to her town water department. The bill was due on November 8. When Abbey paid the bill on December 12, she paid a total of $171.50, including a late penalty. What annual simple...
-
Compute the derivative of (x) = x 3/2 using the limit definition. Show that f(x+h) f(x) _ (x+h)3 x3 ( h h 1 (x+h) + (x3
-
What is the coupon rate of a 9-year,$1,000bond with coupons paid annually and a price of $900,if it has a yield to maturity of 5.00%? NOTE:Answer with two decimals after the dot.DO NOT USE the...
-
For each transaction, indicate in which journal it should be recorded. Sales Journal Cash Receipts Journal Purchases Journal Cash Payments Journal General Journal Returned products to a supplier....
-
For each charge distribution: -6.0 x 105 C Z 9 E 2.0 m - 6.0 x 10-5 C 3.0 m 4.0 x 105 C A 92 3.0 m q2 2.0 m 2 -3.0 x 10-5 C A a. Determine the net electric field at point A. b. The magnitude of the...
-
An institution has just sold a European put option contract on 600,000 British pounds. The strike price of the option is 1.26 and the time to maturity is 26 weeks. The current exchange rate for...
-
Re-write the following, eliminating "legalese, No later than 90 days after the end of each fiscal year, the Borrower shall provide the Bank a copy of the Borrower's year-end financial statements....
-
The unadjusted trial balance of LeBrun Company at its year end, July 31, 2014, is as follows: Adjustment information: 1. The July 31 bank statement reported debit memos for service charges of $50 and...
-
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
-
Suppose we want to compute a two-sided 95% CI for the true mean change in the fruits-and-vegetables group minus the true mean change in the control group, which we represent by (c 1 , c 2 ). Without...
-
Suppose we assume that the standard deviation of change in blood pressure is the same in each group and is known without error. Compute the exact p-value from the information provided? Hypertension A...
-
Suppose we want to compute a two-sided p-value for this comparison. Without doing any further calculation, which statement(s) must be false? (1) p = .01 (2) p = .04 (3) p = .07 (4) p = .20 (The...
-
You will modify the add method in the LinkedBag class. The add method is the only thing you should modify in LinkedBag. Add a second parameter to the method header that will be a boolean variable:...
-
Generate Random Decals is primitive please fix that as well As a license plate number, integers are to be used. Positive numbers add a car, negative numbers remove a car, zero stops the...
-
Describe the competitive positions in the drone industry and assess the opportunities for at least three positions in the industry.
Study smarter with the SolutionInn App