You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $275,000
Answer:
To answer is 73.6 months(approximately 74 days)
Explanation:
Future value (FV) = $275,000
Annual interest rate(i) = 7%
Monthly interest rate = 0.58%(7/13)
Periodic cash outflow (PMT) = $3,000
Number of months (N) = ?
Using a texas BA II Plus calculator
FV = 275,000; PMT = -3,000; I/Y = 0.583 CPT N= 73.6
Therefore the number of months is 73.6 months. Approximately, 74 days
The Molding Department of Sunland Company has the following production data: beginning work in process 25200 units (70% complete), started into production 474000 units, completed and transferred out 449700 units, and ending work in process 49500 units (30% complete). Assuming all materials are entered at the beginning of the process, equivalent units of production for materials are:____.
a. 459150.
b. 499200.
c. 464550.
d. 449700.
Answer:
b. 499200
Explanation:
Calculation to determine what the equivalent units of production for materials are:
Using this formula
Equivalent units of production for materials=Completed and transferred out units+ Ending work in process units
Let plug in the formula
Equivalent units of production for materials=449700units+ 49500units
Equivalent units of production for materials=499200
Therefore Assuming all materials are entered at the beginning of the process, equivalent units of production for materials are:499200
When a perfectly competitive firm decides to shut down, Group of answer choices marginal cost is above average variable cost.
Answer:
price is below average variable cost
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
firms should shutdown when price is less than average variable cost and exit when price is less than average total cost
