Unit 8 Exercise

You deposit $6,000 in an account earning 2% interest compounded monthly. How much will you have in the account in 10 years?

4. Astore is currently offering a 60% discount on all items purchased. Your cashier is trying to convince you to open a store credit card and says to you, "In addition to the 60% discount you are receiving for purchasing these items on sale today, you will get an additional 20% off for opening a credit card account. That means you are getting 105% off!" %3D a. What is the mistaken assumption here? b. Why is that assumption incorrect? c. If you did truly have 80% discount, explain what should happen when you go to the counter to buy $500 worth of items? show calculation d. If you got your 60% discount and opened up the card for an additional 20%, what is the actual % discount you would receive? show calculation e. Is it better to apply the 60% discount first or the 20% discount first?_show calculation

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Pane 3. Assume a company receives cash from different geographic areas of $500,000 daily. The average float of the cash receipt is 4 days. Interest rate on savings is 6% per year. If the company institutes a lock-box system, it will reduce the float to two days. It will cost $80,000 to install the lock-box system and an additional monthly fee of $1,000 to operate it. Should the company install the lock-box system?

Kamal Fate production manager of Kennesaw Manufacturing, finds his profit at $26,400 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment Kamal would like to improve profit line to $36,400 so he can obtain the bank's approval for the loan Sales Cost of supply chan purchases Other production costs 240,000 163,200 Faxed costs Prof % of sales 100% 68% 10% 11% 11% 24,000 26,400 26,400 a) What percentage improvement is needed in a supply chain strategy for profit to improve to $36 400? What is the cost of material with a $36,400 profit? A decrease of in supply chain costs is required to yield a prott of $36,400, for a new cost of supply chain purchases of $ (Enter your response for the percentage decrease to one decimal place and enter your response for the new supply chain cost as a whole number) O

One of your customers is delinquent on hisaccounts payable balance. You’ve mutually agreed to a repayment schedule of $700per month. You will charge 1.3 percent per month interest on the overdue balance. Ifthe current balance is $21,500, how long will it take for the account to be paid off ?

You deposited $4000 each year into an account earning 3% interest compounded annually. How much will you have in 25 years.

470 q 12 which of the following is not a factor under the free cash flow to equity model? a. depreciation expense b. capital expenditure c. change in working capital d. principal debt repayment e. earnings multiplier

If 2500 dollars invested in a bank account for 7 years, compounded quarterly, amounts to 3539.98 dollars, what is the interest rate paid by the account?

Adjusted Bank Balance. Mary's last bank statement showed an ending balance of $208.32. This month, she deposited $787.01 in her account and withdrew a total of $271.89. Furthermore, Mary wrote a total of five checks, two of which have cleared. The two checks that have cleared total $182.73. The three remaining checks total $122.15. Mary pays no fees at her bank. What is the balance shown this month on Mary's bank statement? What is the adjusted bank balance? The balance shown this month on Mary's bank statement is CLUD (Round to the nearest cent.)

construct a cash flow diagram for a company that makes self-clinching fasteners expects to purchase new production-line equipment in 3 years. If the new units will cost 350,000, how much should the company set aside each year, if the account earns 10% per year?

Sale of investments Cash collections from customers Cash purchase of used equipment Depreciation expense $ 5,200 15,700 4,900 2,000 Compute cash flows from investing activities using the above company information. Note: Amounts to be deducted should be indicated by a minus sign. Investing Activities EA $ 0

Mr. Appoh has operated a satisfactory account with your branch for a period of 6 years. He is a 40-year old mechanical engineer who runs a professional office engaged in considering and contacting work for the TDC, Tema, as well as for the private sector. Today Mr. Appoh calls to discuss with you his housing mortgage loan matter under your bank's mortgage loan scheme for private house ownership. For the discussion, he had produced a contractor’s estimate of the cost of a private house he plans to build. The cost of the house was estimated at GHȼ30million. He says he has been allocated a plot of land at Tema and he has been given all the necessary documents. He is applying for a mortgage loan of GHȼ20million repayable within a period of 10 years. He has in his house ownership savings account a total of GHȼ16million, more than the minimum savings required of beneficiaries under the scheme. You are prepared to help him. Your bank takes a legal mortgage of the property concerned. Required:…

Ali deposits $ 1000 in a savings account at the end of each year. If the bank pays interest rate of 6% per year, compounded annually, how much money will have accumulated in the account after 5 years?

The FDIC traditionally protects depositors up to $250,000 per account. True or False True False Prev 7 of 10 Next > tv

Discuss the banks position in each of the following situations and state what actions you will take: i. B.A Samuelson had maintained an account with you for 3 years. He has been a satis-factory customer, but in recent months his account has been overdrawn. You have writ-ten on three occasions recently requesting repayment. He works as a claims manager for a popular insurance company whose account you do not hold. The insurance com-pany was claiming from your bank refund of the value of a cheque for GHȼ1,250,000. The cheque which was made out in the name of A. Samuel and crossed “not negotiable” was fraudulently altered by Mr. Samuelson after it has been signed. No enquiry was made of B.A Samuelson when he lodged in this cheque for collection.

Find the principal necessary to earn 500 in simple interest if the money is to be left on deposit for 5 years and earns (A) 8.5%; (B) 8%; (c) 7.5%. *

50-The type of deposit account preferred by business organizations is: Recurring deposits Current deposits Savings bank deposits Fixed deposits

Be sure to use 2018 amounts please!!