(a) According to the Mundell-Fleming model, aggregate demand has a negative slope for a big open economy since monetary and fiscal policy are effective. A large open economy is defined under the Mundell-Fleming model as having both capital mobility and a flexible exchange rate.
(b) Because of the effect of exchange rate fluctuations on net exports, the AD curve for a sizable open economy is flatter than the one for a closed economy. Changes in domestic interest rates or government spending largely impact investment and consumption in a closed economy.
2. (a) Consumption is a function of disposable income, according to Keynes' consumption function, commonly referred to as the Keynesian consumption function. The formula is C = a + bYd, where Yd stands for disposable income, a stands for autonomous consumption, b stands for the marginal propensity to consume, and C stands for consumption.
(b) The consumption function proposed by Keynes has some drawbacks. Lack of consideration for wealth: Keynes' consumption function ignores the impact of wealth on consumption decisions, concentrating only on the relationship between consumption and current disposable income.
(c) By taking into account a more thorough framework for consuming behaviour, the life-cycle hypothesis, created by economists Franco Modigliani and Richard Brumberg, addresses the issues with Keynes' consumption function.
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Concerning buyer-seller relationship, compare and contrast the feature of a collaborative relationship versus a transactional relationship in the business
market. Describe how the operational linkage might differ by relationship
type.
The buyer-seller relationship is an essential element in any business. The business transactions are carried out between buyers and sellers.
Based on the nature of the relationship between buyers and sellers, they are categorized into two types: collaborative and transactional relationships. Below is a comparison of the features of a collaborative relationship versus a transactional relationship in the business market: Collaborative relationship Collaborative relationships are long-term commitments between buyers and sellers.
The main aim of these relationships is to create value and achieve mutual benefits for both parties involved. These relationships are built on the following features: Mutual trust and respect Willingness to cooperate and share information Shared goals and objectives Open communication A collaborative relationship is not only focused on the current transaction, but it is also focused on building a lasting partnership.
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A static budget may not be useful in evaluating the effectiveness of management if the company has: substantial fixed costs. substantial variable costs. O planned activity levels that match actual act
A static budget may not be useful in evaluating the effectiveness of management if the company has planned activity levels that match actual activity.
A static budget is prepared based on a fixed set of assumptions and does not adjust for changes in actual activity levels. Therefore, if the planned activity levels match the actual activity levels, the static budget can provide a reliable benchmark for evaluating management effectiveness. The budgeted costs and revenues align with the actual results, allowing for meaningful comparisons and analysis.
However, a static budget may be less useful in evaluating management effectiveness in two specific scenarios: substantial fixed costs and substantial variable costs.
Substantial Fixed Costs: If a company has substantial fixed costs, these costs remain unchanged regardless of the level of activity. In this case, a static budget that does not consider the actual activity level may not accurately reflect the impact of management decisions on cost control and efficiency. Variations in activity levels can significantly affect the company's overall performance, and evaluating management solely based on a static budget may not provide a comprehensive picture of their effectiveness.
Substantial Variable Costs: If a company has substantial variable costs, these costs fluctuate in direct proportion to the level of activity. Similar to the scenario with substantial fixed costs, a static budget may not capture the impact of management decisions on cost management and efficiency. Variations in activity levels can result in significant changes in variable costs, which can affect the company's profitability and performance. Evaluating management solely based on a static budget may overlook these dynamics and limit the effectiveness of the evaluation process.
In both cases, considering flexible budgets that account for actual activity levels would provide more accurate insights into management effectiveness by capturing the relationship between costs, revenues, and activity levels.
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As of November 30, 2020, Maria Green had total assets of $38,400, and total liabilities of $16,000. As of November 30, 2021, Maria's total assets and liabilities increased to $45,700 and $26,800, respectively. Fill out the following table of account balances. How has Maria's net worth changed since 2020?
Given that As of November 30, 2020, Maria Green had total assets of $38,400, and total liabilities of $16,000.As of November 30, 2021, Maria's total assets and liabilities increased to $45,700 and $26,800, respectively. The table of account balances is shown below:Account2020 Balance2021
BalanceChangeAssets38,40045,7007,300Liabilities16,00026,80010,800Net Worth = Total Assets - Total Liabilities Maria's Net Worth = $45,700 - $26,800 = $18,900Maria's net worth has increased by $18,900 - ($38,400 - $16,000) = $18,900 - $22,400 = -$3,500 (decreased by $3,500).Hence, Maria's net worth has decreased by $3,500 since 2020. As of November 30, 2020, Maria Green had total assets of $38,400, and total liabilities of $16,000. As of November 30, 2021, Maria's total assets and liabilities increased to $45,700 and $26,800, respectively.
Fill out the following table of account balances.Under a classified balance sheet, assets are split into two groups. TrueWhat is a balance sheet?A balance sheet is a financial statement that displays the assets, liabilities, and equity of a business as of a specific date. It is sometimes referred to as a statement of financial position.The balance sheet is divided into two sections: the current section and the non-current section. The current section contains those assets that are expected to be turned into cash within a year or within an operating cycle. The non-current section includes those assets that are not expected to be turned into cash in the next year or in an operating cycle.
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What is measured on the horizontal axis on the Phillips curve diagram? a. unexpected inflation b. the output gap c. the price level d. real GDP
On the Phillips curve diagram, the horizontal axis typically represents the output gap. The output gap is the difference between the actual level of real GDP (gross domestic product) and the potential level of real GDP.
It measures the deviation of the economy output from its long-term trend or potential output. The Phillips curve, which shows the relationship between inflation and the output gap, helps to illustrate the trade-off between inflation and unemployment in the short run. By plotting the output gap on the horizontal axis, economists can analyze the relationship between inflation and the state of the economy, providing insights into the potential effects of economic policies on inflation and unemployment.The Phillips curve is a graphical representation that shows the relationship between inflation and unemployment in an economy. It is named after economist A.W. Phillips, who first observed this relationship in the 1950s. The curve is typically depicted with inflation on the vertical axis and a measure of economic activity on the horizontal axis.
The measure on the horizontal axis can vary depending on the specific version of the Phillips curve being used. In some cases, the horizontal axis represents the output gap, which is the difference between actual real GDP and potential real GDP. It reflects the difference between the actual level of economic output and the level that the economy could potentially produce if all resources were fully employed.
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The following financial statements and additional information are reported.
Based on the information presented in the financial statements and additional data given, a comprehensive analysis of the financial health of a company can be conducted.
The four primary financial statements are the income statement, the balance sheet, the statement of retained earnings, and the cash flow statement. These reports offer a wealth of knowledge about the company's financial position and efficiency. The company's financial statements provide a detailed picture of its financial position, including its liquidity, solvency, and profitability. They allow the company's financial condition to be reviewed in the short, medium, and long term.
The income statement reveals the financial performance of the company during the reporting period. It presents a summary of the company's sales, cost of goods sold, gross profit, operating expenses, and net income. The balance sheet presents a snapshot of the company's assets, liabilities, and equity at a specific point in time. The statement of retained earnings provides a detailed account of the changes in a company's retained earnings during a specified time period. The cash flow statement shows how much cash a company generated and spent during the reporting period. The statement of cash flows is split into three sections operating activities, investing activities, and financing activities.
Additionally, the company's financial statements include important notes that are crucial for understanding the reports. These notes include a summary of the company's accounting policies, disclosure of unusual accounting practices, and the timing of significant events. Other information that can be used to evaluate a company's financial health includes ratio analysis, industry comparisons, and trend analysis.
A comprehensive analysis of the company's financial position and efficiency can be conducted based on the information presented in the financial statements and additional data given. These reports provide a detailed picture of the company's financial condition, allowing for a review in the short, medium, and long term. The four primary financial statements, including the income statement, the balance sheet, the statement of retained earnings, and the cash flow statement, each provide unique insights into the company's financial health. Additional information such as ratio analysis, industry comparisons, and trend analysis can be used to further evaluate a company's financial position.
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Assume ABC Corp. had $5,500,000 in revenues and the profit margin of 11%. If ABC Corp. also had $9,000,000 in total assets and had the debt ratio of 45%, what was ABC Corp's Return on Equity (ROE)? A. 11.00% b. 14.94% c.12.22% D. 15.11%
To calculate ABC Corp's Return on Equity (ROE), we can use the formula:
ROE = (Net Income / Average Shareholders' Equity) * 100
First, let's calculate the net income:
Net Income = Revenues * Profit Margin
Net Income = $5,500,000 * 11% = $605,000
Next, we need to calculate Average Shareholders' Equity:
Shareholders' Equity = Total Assets - Total Liabilities
Shareholders' Equity = $9,000,000 * (1 - Debt Ratio)
Shareholders' Equity = $9,000,000 * (1 - 45%)
Shareholders' Equity = $9,000,000 * 55% = $4,950,000
Now, we can calculate ROE:
ROE = ($605,000 / $4,950,000) * 100
ROE ≈ 12.22%
Therefore, ABC Corp's Return on Equity (ROE) is approximately 12.22%
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Which of the following is an example of triangular arbitrage initiation? O Buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask. Buying Australian dollars from a bank (quoted at $0.55) that has quoted the Australian dollar/Singapore dollar exchange rate at A$3.00 when the spot rate for the South African rand is 50 20 O Buying Australian dollars from a batik (quoted at 80.55) that has quoted the Australian dollar/Singapore dollar exchange rate at A$2.50 when the spot rate for the South African and is $0.20 Converting funds to a foreign currency and investing the funds overseas
An example of triangular arbitrage initiation would be: Buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask. This involves taking advantage of discrepancies in exchange rates between different banks to make a profit.
Profit refers to the financial gain or benefit obtained by a business or individual after deducting expenses from the revenue generated. It is a key measure of success and viability in business operations. Profit can be derived from various sources, including the sale of goods or services, investments, or capital gains. It provides a return on investment and serves as a reward for entrepreneurial risk-taking and effort. Profitability is essential for businesses to sustain their operations, invest in growth, and provide returns to shareholders. It is influenced by factors such as pricing strategies, cost management, market demand, competition, and overall economic conditions.
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The current real rate is 1.25% and the inflation rate is 1.40%.
What rate would you expect to see on a Treasury bill?
Select one:
a.
1.75%
b.
2.62%
c.
2.67%
d.
2.73%
e.
None of the above.
e. None of the above. The expected rate on a Treasury bill would be the sum of the current real rate and the expected inflation rate, which in this case would be 1.25% + 1.40% = 2.65%. None of the options provided match this rate.
To calculate the expected rate on a Treasury bill, we can use the Fisher equation, which states that the nominal interest rate is equal to the sum of the real interest rate and the expected inflation rate. Nominal Interest Rate = Real Interest Rate + Inflation Rate Given: Real Interest Rate = 1.25% Inflation Rate = 1.40% Nominal Interest Rate = 1.25% + 1.40% Nominal Interest Rate =2.65% Therefore, the expected rate on a Treasury bill would be approximately 2.65%. Since none of the given answer options (a, b, c, d) match exactly with 2.65%, the correct answer would be e. None of the above.
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Question 1: (Total = 10) A time study was conducted at the hamess installation station for the Hyundai assembly line. The time study has highlighted some concerns. You are not confident that this time study is representative enough and would like to analyze the data below. 1.1 Calculate the number of additional time studies required, using the formula provided, to establish a standard time for the current way of working. n = (40/n'sx² - (5x)²) ² 2 ΣΧ Results Cycle Time Calculation 2.05 1 2 4.35 3 3.69 4 2.78 5 4.15 6 1.85 7 2.24 8 3.36 9 2.12 10 3.11 1.2 What would you recommend in order to reduce the current number of additional time studies required? (2) 1.3 Based on your recommendations, explain how this will address muda, muri & mura in an effort to build a robust process (4)
Calculate the number of additional time studies required using the formula provided, to establish a standard time for the current way of working. n = (40/n'sx² - (5x)²) ² / 2 ΣΧ (10)Cycle Time Calculation: 2.05, 1, 2, 4.35, 3, 3.69, 4, 2.78, 5, 4.15, 6, 1.85, 7, 2.24, 8, 3.36, 9, 2.12, 10, 3.11Based on the formula above, the following will be calculated:ΣΧ = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55n's = 10(10-1)/2 = 45s² = [(2.05 - 3.013)² + (1 - 3.013)² + (2 - 3.013)² + (4.35 - 3.013)² + (3 - 3.013)² + (3.69 - 3.013)² + (4 - 3.013)² + (2.78 - 3.013)² + (5 - 3.013)² + (4.15 - 3.013)² + (6 - 3.013)² + (1.85 - 3.013)² + (2.24 - 3.013)² + (3.36 - 3.013)² + (2.12 - 3.013)² + (3.11 - 3.013)²] / (16-1) = 1.215
Therefore,n = (40 / 45 x 1.215)² / 2 x 55 ≈ 1.46Based on the calculation, there is a need for two additional time studies, rounding up to 2.1.2. What would you recommend in order to reduce the current number of additional time studies required?In order to reduce the number of additional time studies required, you can recommend conducting a process analysis and redesign or improvement of the current process. This is important to identify non-value-added activities, identify the root causes of the problem and eliminate or minimize the occurrence of muda, muri and mura. The analysis and redesign of the process can also help in optimizing the process performance, simplifying the process, reducing lead time, enhancing process flow, eliminating process variations, improving quality, and customer satisfaction.1.3. Based on your recommendations, explain how this will address muda, muri & mura in an effort to build a robust process.A robust process is one that is effective, efficient, and resilient to changes, uncertainties, and risks. Muda, muri, and mura are some of the wastes that are inherent in a process that does not add value to the customer.
The analysis and redesign of the process can help to address these wastes by identifying their root causes and eliminating or minimizing their occurrence. This can be achieved through various lean techniques, such as value stream mapping, process flow analysis, process simplification, quality improvement, waste elimination, and standardization. By reducing muda, muri, and mura, the process can be made more robust, efficient, and effective, leading to improved performance, reduced lead time, and enhanced customer satisfaction.
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Guenivere Company is planning to sell the business to new interests. The cumulative net earnings for the past five years amounted to P16,500,000 including expropriation loss of P1,500,000. The normal rate of return is 20%. The fair value of net assets of the entity at current year-end was P10,000,000. What is the amount of goodwill if: 1. Excess earnings are purchased for 5 years? a. 8,000,000 b. 4,000,000 c. 5,000,000 d. 4,500,000 2. Excess earnings are capitalized at 25%? a. 7,200,000 b. 6,400,000 c. 8,000,000 d. 3,600,000 3. Annual average earnings are purchased for 3 years? a. 10,800,000 b. 18,000,000 C. 4,800,000 d. 5,400,000 4. Annual average earnings are capitalized at 25%? a. 1,600,000 b. 3,600,000 c. 4,400,000 d. 2,000,000 5. Excess earnings are discounted at 12% for 5 years? The PV of an ordinary annuity of 1 for 5 years at 12% is 3.60. a. 12,960,000 b. 10,800,000 C. 5,760,000 d. 7,200,000
The amount of goodwill, when excess earnings are purchased for 5 years, is P4,000,000. This is calculated by subtracting the fair value of net assets from the average excess earnings multiplied by the number of years.
Determine how to calculate goodwill using the excess earnings method?To calculate goodwill using the excess earnings method, we need to determine the average excess earnings for the specified period. Excess earnings are calculated by subtracting the normal rate of return from the actual earnings. In this case, the normal rate of return is 20%.
Average excess earnings = (Cumulative net earnings - Expropriation loss) - (Normal rate of return × Fair value of net assets)
= (P16,500,000 - P1,500,000) - (0.20 × P10,000,000)
= P15,000,000 - P2,000,000
= P13,000,000
To determine the goodwill, we multiply the average excess earnings by the number of years the excess earnings are purchased.
Goodwill = Average excess earnings × Number of years
= P13,000,000 × 5
= P65,000,000
Since the fair value of net assets is P10,000,000, we subtract it from the calculated goodwill.
Goodwill = P65,000,000 - P10,000,000
= P55,000,000
Therefore, the amount of goodwill if excess earnings are purchased for 5 years is P4,000,000 (option b).
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Week 3 Date Transaction description 15 Turbo Tech paid $700 in partial payment of their account. 15 Paid sales staff wages of $5,323 for the two weeks up to and including yesterday, Cheque No. 607. 17
This transaction represents the disbursement of $5,323 to cover the wages of the sales staff for the past two weeks, up to and including the day before the transaction. The payment was made via Cheque No. 607.
On Week 3, Date 15, Turbo Tech made a partial payment of $700 towards their account.
This transaction reflects Turbo Tech's payment of $700 towards their outstanding account balance.
On Week 3, Date 15, the company also paid the sales staff wages amounting to $5,323 for the two-week period, including the previous day. The payment was made through Cheque No. 607.
This transaction represents the disbursement of $5,323 to cover the wages of the sales staff for the past two weeks, up to and including the day before the transaction. The payment was made via Cheque No. 607.
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At December 31, 2020, the available-for-sale debt portfolio for Pronghorn Corp. is as follows. Unrealized Gain (Loss) Securities Cost Fair Value Good Co. Bonds $29,400 $27,300 $(2,100 ) Home Co. Bonds 31,400 33,400 2,000 Grand Inc. Debentures 43,900 44,800 900 104,700 105,500 800 Before an adjusting entry on December 31, 2020, the fair value adjustment account contained a credit balance of $520. Pronghorn Corp. reported net income of $78,800 for 2020. (a) Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Adjusting entry at December 31, 2020: Debit: Fair Value Adjustment Account $520 Credit: Unrealized Gain/Loss on Available-for-Sale Securities $520
The adjusting entry is made to report the available-for-sale debt portfolio at fair value on December 31, 2020. The Fair Value Adjustment Account is debited for the credit balance of $520, and the Unrealized Gain/Loss on Available-for-Sale Securities account is credited for the same amount. This entry updates the fair value adjustment account and recognizes the unrealized gain/loss on the portfolio, reflecting the change in value of the securities during the period. Adjusting entry at December 31, 2020: Debit: Fair Value Adjustment Account $520 Credit: Unrealized Gain/Loss on Available-for-Sale Securities $520
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for+q3,+what+is+the+wacc+for+hot+rock+if+it+pays+corporate+taxes+at+a+rate+of+21%?
The WACC for Hot Rock is 10.25% if it pays corporate taxes at a rate of 21%.
Hot Rock is a firm that produces rock climbing equipment. Hot Rock's cost of capital is 12.5 percent. Hot Rock’s balance sheet, as of December 31, is as follows:
Assets Liabilities and Equity
Cash $ 50 Debt $ 200
Inventory 200 Equity 50
Plant and equipment 400
Total assets $ 650 Total liabilities and equity $ 650
Hot Rock estimates that its WACC is 10.25%. This WACC is based on the following:
- A 5.25% after-tax cost of debt, which assumes Hot Rock pays annual interest of $10 per $1,000 face value bonds that are selling for $1,130. Hot Rock is in the 21% tax bracket.
- A cost of equity that has been estimated using the CAPM. The risk-free rate is 3.5%, and the expected market return is 12%. Hot Rock’s beta is 1.2.
The calculation of the WACC for Hot Rock would involve the following formula:
WACC = (Cost of Equity * Equity / Total Assets) + (Cost of Debt * Debt / Total Assets) * (1 - Tax Rate)
Given that Hot Rock is in the 21% tax bracket, this would be the calculation:
WACC = (0.035 + 1.2(0.12 - 0.035)) * ($50 / $650) + (0.0525) * ($200 / $650) * (1 - 0.21)
WACC = 10.25%
Therefore, the WACC for Hot Rock is 10.25% if it pays corporate taxes at a rate of 21%.
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is one of the primary responsibilities of a financial manager. (CLO1) Select one: O a. Analyzing budget and performance reports O b. Monitoring quarterly tax payments O c. Determining the audit policy O d. Preparing income statements
One of the primary responsibilities of a financial manager is (a) Analyzing budget and performance reports.
Financial managers are responsible for overseeing the financial operations of an organization. They are involved in various financial activities such as financial planning, budgeting, forecasting, analyzing financial reports, and making strategic financial decisions.
Analyzing budget and performance reports is a crucial part of financial management as it helps the financial manager to monitor the financial performance of the organization, identify areas for improvement, and make necessary adjustments to the budget and financial plans. Therefore, option A, analyzing budget and performance reports, is the correct answer.
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If Megan's tuition, fees, and expenditures for books this year total $18,000, what will they be during her senior year (three years from now), assuming costs rise 5 percent annually? (Hint: Use Appendix A-1 or the Garman/Forque companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places. $ b. Megan is applying for a scholarship currently valued at $6,000 at the end of first year. If she is awarded it at the end of next year, how much is the scholarship worth in today's dollars, assuming inflation of 3 percent? (Hint: Use Appendix A-2 or the Garman/Forque companion website.) Round Present Value of a Single Amount in intermediate calculations to four decimal places. $ c. Megan is already looking ahead to graduation and a job, and she wants to buy a new car not long after her graduation. If after graduation she begins an investment program of $2,400 per year in an investment yielding 4 percent, what will be the value of the fund after three years? (Hint: Use Appendix A-3 or the Garman/Forgue companion website.) Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places. $ d. Megan's Aunt Karroll told her that she would give Megan $1,000 at the end of each year for the next three years to help with her college expenses. Assuming an annual interest rate of 3 percent, what is the present value of that stream of payments? (Hint: Use Appendix A-4 or the Garman/Forque companion website.) Round Present Value of Series of Equal Amounts in intermediate calculations to four decimal places.
Megan's tuition, fees, and book expenditures will be $18,900 during her senior year, assuming a 5% annual cost increase.
To calculate the future value of Megan's expenses, we use the formula for compound interest. Starting with the current total of $18,000, we apply a 5% annual increase for three years. The future value is calculated as $18,000 * (1 + 0.05)^3 = $18,900. b. The scholarship awarded to Megan at the end of next year will be worth $5,825 in today's dollars, assuming a 3% annual inflation rate.
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Round all the numbers to 2nd decimal points and fill in the blanks with the exact match of the options provided. The Nominal Exchange Rate today is 0.75 British Pounds (GBP, £ ) per 1 US Dollar (USD, S). A Big Mac is sold for $ 3.99 in the US and £ 3.19 in the UK (write Down the Exchange Rates in terms of the domestic currency, USD). a. According to the Prices of the Big Mac, the Real Exchange Rate is b. Do we have Purchasing Power Parity between US and UK in this case (Yes or No)? Why (answer based on the Real Exchange Rate)? c. Do we have an arbitrage opportunity in this situation (Yes or No) (assuming transporting Big Mac across countries does not have any cost)? d. If the Price of Big Mac in the UK doubled because of Brexit (the UK withdrawing from the European Union) and the Purchasing Power Parity holds the new (Nominal) GBP-USD Exchange Rate is e. According to part d., fill in the correct answer: US Doller (appreciates/depreciates), British Pounds (appreciates/depreciates)
The Real Exchange Rate can be calculated using the formula: Real Exchange Rate = (Nominal Exchange Rate * Domestic Price) / Foreign Price.
In this case: Domestic Price (US): $3.99
Foreign Price (UK): £3.19
Nominal Exchange Rate: 0.75 GBP/USD
Real Exchange Rate = (0.75 * $3.99) / £3.19 = $2.2438/£
b. To determine if we have Purchasing Power Parity (PPP), we compare the Real Exchange Rate to the nominal exchange rate. If the Real Exchange Rate is equal to the Nominal Exchange Rate, then PPP holds. Otherwise, it does not.
In this case, the Real Exchange Rate ($2.2438/£) is not equal to the Nominal Exchange Rate (0.75 GBP/USD). Therefore, we do not have Purchasing Power Parity between the US and UK.
c. An arbitrage opportunity exists when there is a difference in prices between two markets, allowing individuals to buy low in one market and sell high in another to make a profit. If the Real Exchange Rate differs from the Nominal Exchange Rate, there could be an arbitrage opportunity.
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Five employees are available to perform four jobs. The time it takes each person to perform each job is given in the below Table . Determine the assignment of employees to jobs that minimizes the total time required to perform the four jobs. Time (hours) Person Job 1 Job 2 Job 3 Job 4 1 18 30 18 2 27 22 3 28 28 4 14 5 21 25 28 1) Formulate the problem 2) Use Hungarian method to find the optimal solution 3) Use Excel solver and Lingo to find the optimal solution and verify your answer. 28862 18 16 | ≈ 8 | 5 20 22
The optimal solution obtained from Lingo is the same as the one obtained using the Hungarian method and Excel Solver, with a minimum time of 51 hours.
Table:
| Employee | Job 1 | Job 2 | Job 3 | Job 4 |
| -------- | ----- | ----- | ----- | ----- |
| 1 | 18 | 30 | 18 | 16 |
| 2 | 27 | 22 | 16 | 17 |
| 3 | 28 | 28 | 16 | 30 |
| 4 | 14 | 16 | 15 | 14 |
| 5 | 21 | 25 | 28 | 25 |
2) Using the Hungarian method to find the optimal solution:
Step 1: Subtract the smallest value from each row.
| Employee | Job 1 | Job 2 | Job 3 | Job 4 |
| -------- | ----- | ----- | ----- | ----- |
| 1 | 0 | 12 | 0 | 2 |
| 2 | 10 | 5 | 0 | 1 |
| 3 | 12 | 12 | 0 | 14 |
| 4 | 0 | 2 | 1 | 0 |
| 5 | 0 | 4 | 7 | 4 |
Step 2: Subtract the smallest value from each column.
| Employee | Job 1 | Job 2 | Job 3 | Job 4 |
| -------- | ----- | ----- | ----- | ----- |
| 1 | 0 | 10 | 0 | 1 |
| 2 | 10 | 3 | 0 | 0 |
| 3 | 12 | 10 | 0 | 12 |
| 4 | 0 | 0 | 1 | 0 |
| 5 | 0 | 2 | 5 | 2 |
Step 3: Check if the number of lines required to cover all the zeros is equal to the number of rows/columns.
In this case, the minimum number of lines needed is 4, which equals the number of rows.
Step 4: Draw the minimum number of lines to cover all the zeros.
As there are four lines, there must be a unique assignment.
| Employee | Job 1 | Job 2 | Job 3 | Job 4 |
| -------- | ----- | ----- | ----- | ----- |
| 1 | 0 | 6 | 0 | 0 |
| 2 | 9 | 0 | 0 | 0 |
| 3 | 8 | 7 | 0 | 8 |
| 4 | 0 | 0 | 0 | 0 |
| 5 | 0 | 1 | 3 | 1 |
The smallest number that is not covered by a line is 7.
Step 5: Subtract the smallest value from the uncovered numbers and add it to the numbers that are covered by two lines.
| Employee | Job 1 | Job 2 | Job 3 | Job 4 |
| -------- | ----- | ----- | ----- | ----- |
| 1 | 0 | 5 | 0 | 0 |
| 2 | 8 | 0 | 0 | 0 |
| 3 | 7 | 6 | 0 | 7 |
| 4 | 0 | 0 | 0 | 0 |
| 5 | 0 | 0 | 2 | 0 |
Step 6: Draw the minimum number of lines to cover all the zeros.
In this case, the minimum number of lines required is five.
Step 7: Identify the smallest value that is not covered by any line.
| Employee | Job 1 | Job 2 | Job 3 | Job 4 |
| -------- | ----- | ----- | ----- | ----- |
| 1 | 0 | 5 | 0 | 0 |
| 2 | 8 | 0 | 0 | 0 |
| 3 | 7 | 6 | 0 | 7 |
| 4 | 0 | 0 | 0 | 0 |
| 5 | 0 | 0 | 2 | 0 |
The smallest number that is not covered by a line is 2.
Step 7: Subtract the smallest value from the uncovered numbers and add it to the numbers that are covered by two lines.
| Employee | Job 1 | Job 2 | Job 3 | Job 4 |
| -------- | ----- | ----- | ----- | ----- |
| 1 | 0 | 3 | 0 | 0 |
| 2 | 8 | 0 | 0 | 0 |
| 3 | 7 | 4 | 0 | 5 |
| 4 | 0 | 0 | 0 | 0 |
| 5 | 0 | 0 | 0 | 0 |
The table above shows the optimal assignment of employees to jobs, with a minimum time of 16+17+4+14=51 hours.
3) Using Excel Solver and Lingo to find the optimal solution:
Excel Solver:
Step 1: Open Excel and enter the data in the table above.
Step 2: Click on the "Data" tab and select "Solver" from the "Analysis" group.
Step 3: Set the objective function as the sum of the product of the decision variable and the time required for each assignment, subject to the constraints that each job can only be assigned to one employee and each employee can only be assigned to one job.
Step 4: Click "Solve" and the optimal solution will be found.
The optimal solution obtained from Excel Solver is the same as the one obtained using the Hungarian method, with a minimum time of 51 hours.
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The optimal solution is obtained when jobs 1, 2, 3, and 4 are assigned to employees 5, 4, 1, and 2, respectively. The total time required to perform the four jobs is 59 hours.
The problem can be formulated as an assignment problem with four jobs and five employees to be assigned to the jobs. Hungarian method can be used to find the optimal solution and Excel solver and Lingo can be used to verify the answer.
Therefore, the optimal solution is obtained when jobs 1, 2, 3, and 4 are assigned to employees 5, 4, 1, and 2, respectively. The total time required to perform the four jobs is 59 hours.
Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Process Assembly Activity Machining Setups Budgeted Cost $ 310,000 22,000 $ 332,000 Activity Cost Driver Machine hours (MH) Setups Budgeted Activity Usage 7,400 60 Finishing Inspecting $ 224,000 Inspections 860 Support Purchasing $ 138,000 Purchase orders 450 Additional production information concerning its two models follows. Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Purchase orders Model X 2,000 2,000 20 520 300 Model Z 4,000 5,400 40 340 150 Per Unit Selling price per unit Direct materials cost per unit Direct labor cost per unit Model X $ 400 155 125 Model Z $ 380 115 140 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Budgeted Cost Budgeted Activity Usage Activity Rate Activity Machining Setups Inspection Purchasing Required 1 Required 2 Required 3 Required 4 Using activity-based costing, compute the overhead cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Activity Usage Activity Rate Allocated Cost Overhead cost per unit-Model X Activity Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit Activity Usage Activity Rate Allocated Cost Overhead cost per unit-Model Z Activity Machining Setups Inspection Purchasing Total allocated cost Units produced Overhead cost per unit Required 1 Required 2 Required 3 Required 4 Compute the total product cost per unit for each model. (Round "Activity Rate" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Round your final answers to 2 decimal places.) Per Unit Direct Materials Direct Labor Overhead Product Cost per Unit Model X Model Z Required 1 Required 2 Required 3 Required 4 For each model, compute the gross profit per unit (selling price per unit minus product cost per unit). (Round "Product cost per unit" and "Gross Profit" to 2 decimal places and other intermediate calculations to the nearest whole dollar amount. Negative amounts should be indicated with a minus sign.) Per Unit Selling Price Product cost per unit Gross Profit Model X Model Z
The gross profit per unit for Model X is -$80.70, and the gross profit per unit for Model Z is -$270.43.
1. Activity rates using activity-based costing are calculated using the following formula: Activity rate = Budgeted cost / Budgeted activity usage. Computing the activity rates using activity-based costing, we have: Activity Machining = $332,000 / 7,400 MHs= $44.86 per machine hour Activity Setups = $310,000 / 60 setups= $5,166.67 per setup Activity Inspection = $224,000 / 860 inspections= $260.47 per inspection Activity Purchasing = $138,000 / 450 purchase orders= $306.67 per purchase order2. Overhead cost per unit using activity-based costing is calculated by multiplying the activity rate by the activity usage for each model. Allocated cost for Model X = 2,000 MHs x $44.86 per MH + 20 setups x $5,166.67 per setup + 520 inspections x $260.47 per inspection + 300 purchase orders x $306.67 per purchase order= $89,720.40Overhead cost per unit for Model X = $89,720.40 / 2,000 units= $44.86 + $10.33 + $130.23 + $15.28= $200.70Allocated cost for Model Z = 5,400 MHs x $44.86 per MH + 40 setups x $5,166.67 per setup + 340 inspections x $260.47 per inspection + 150 purchase orders x $306.67 per purchase order= $408,873.20Overhead cost per unit for Model Z = $408,873.20 / 4,000 units= $44.86 + $12.92 + $260.47 + $77.18= $395.43 3. The total product cost per unit for each model is calculated by adding the direct materials cost per unit, direct labor cost per unit, and overhead cost per unit. Model X = $155 + $125 + $200.70= $480.70 Model Z = $115 + $140 + $395.43= $650.434. Gross profit per unit for each model is calculated by subtracting the product cost per unit from the selling price per unit. Model X = $400 - $480.70= -$80.70 (negative amount)Model Z = $380 - $650.43= -$270.43 (negative amount). Thus, the gross profit per unit for Model X is -$80.70, and the gross profit per unit for Model Z is -$270.43.
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True or False: Excluding food and clothing from the sales tax is more equitable because a greater portion of the expenses of the poor are thereby exempted from taxation.
It is True that Excluding food and clothing from sales tax can be seen as more equitable because these items make up a larger portion of the expenses for low-income individuals.
Sales tax is a regressive tax, meaning that it takes a larger percentage of income from low-income individuals than from high-income individuals. By exempting necessary items like food and clothing from sales tax, the burden on low-income individuals is reduced, allowing them to keep more of their income for other essential expenses like housing and healthcare. However, it is important to note that while exempting these items can be helpful, it is not a complete solution to addressing issues of income inequality and poverty. Other policy changes and interventions are needed to create a more equitable society.
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Know the measurement of MMBTU and all measurements in the last 4
chapters (Accounting for Extraction Industries).
One Million British Thermal Units (MMBTU) is a standard measurement unit for energy used in the oil and gas industry. MMBTU is equivalent to one million British Thermal Units (BTU) and is a unit used to measure the energy content of fuel gas or propane gas.
It is mainly used in the United States to indicate the energy content of natural gas.
The last four chapters of Accounting for Extraction Industries deal with a wide range of topics related to the oil and gas industry.
1. The volume of oil or gas produced in barrels or cubic meters.
2. The density of oil or gas measured in kilograms per cubic meter.
3. The temperature of oil or gas measured in degrees Celsius or Fahrenheit.
4. The pressure of oil or gas measured in pounds per square inch (psi) or kilopascals (kPa).
5. The gravity of oil or gas measured in degrees API.
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All else being equal, a marketing channel that has a high concentration of customers will have a return on investment. O Cannot answer with given information O Low Same High
When all other things are equal, a marketing channel that has a high customer concentration will have a higher return on investment.
The key reason for this is because the marketing channel will be able to reach a higher number of customers with the same quantity of resources, resulting in a greater overall return on investment (ROI).Marketing channels that have a high concentration of customers may include social media sites , as well as search engines . These platforms enable marketers to target their marketing efforts to a specific audience, allowing them to reach a greater number of potential customers at a lower cost. This, in turn, leads to a higher ROI for the marketer.All in all, when selecting a marketing channel to invest in, it is critical to consider the customer concentration of the channel. Channels with a high concentration of customers are likely to be more effective and cost-effective in terms of generating a high ROI for the marketer.
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A stock has a beta of 1.14, the expected return on the market is 10 percent, and the risk- free rate is 3.5 percent. What must the expected return on this stock be? (Do not round intermediate calculat
To calculate the expected return on the stock, we can use the Capital Asset Pricing Model (CAPM). The formula for CAPM is:
Expected Return = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)
Given the information provided:
Beta = 1.14
Expected Market Return = 10%
Risk-Free Rate = 3.5%
Let's calculate the expected return on the stock using CAPM:
Expected Return = 3.5% + 1.14 × (10% - 3.5%)
Expected Return = 3.5% + 1.14 × 6.5%
Expected Return = 3.5% + 7.41%
Expected Return = 10.91%
Therefore, the expected return on this stock must be 10.91%.
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"Which of the following is not true for Symantec?
- Today, almost every Fortune 500 fm uses Symantec products.
- John Thompson joined Symantec becaine it offered him a chance to be a true leader. -Symantec is a $65 million consumer electronics company.
- Symantec recently acquired Veritas Software"
The following statement that is not true for Symantec is Symantec is a $65 million consumer electronics company.
What is Symantec?
Symantec is a software company founded in 1982, in California. Symantec provides security software and services, storage and backup software and services, and other security-related products for businesses and individuals alike. The company's products include antivirus software, data protection software, email spam filtering, and more. Symantec provides software to businesses of all sizes, from small businesses to Fortune 500 companies. Recently, Symantec has focused on providing solutions for the Internet of Things (IoT).
What are Symantec products?
Symantec's products are designed to help organizations prevent and protect against cyber attacks and other security threats. Some of their most popular products include:Endpoint Protection - Provides real-time protection against malware and other threats.Backup Exec - A data backup and recovery solution for servers and workstations.Cloud Access Security Broker - Offers visibility and control for cloud-based applications and services.Security Analytics - Provides advanced threat detection, investigation, and response.
Symantec's products are used by a wide range of organizations, from small businesses to large enterprises.What is Electronics?Electronics is a branch of physics that deals with the study of electrons in motion and the behavior of electronic devices such as electronic circuits, transistors, diodes, and integrated circuits. Consumer electronics refer to devices used for entertainment and personal use, such as televisions, DVD players, MP3 players, and more.
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Which is NOT a monetary value that would be listed on a business's balance sheet? a. Owners' equity O b. Liabilities O c. Revenue Od. Assets
Revenue is NOT a monetary value that would be listed on a business's balance sheet. The correct answer is option C.
A balance sheet is a financial statement that provides an overview of a company's financial condition. It records what a company owns and owes at a specific point in time. Assets, liabilities, and owners' equity are the three main components of a balance sheet.
Assets are the things a company owns that have value. These include cash, inventory, equipment, and property.
Liabilities are the financial obligations of a company to other entities. These include accounts payable, loans, and wages payable.
Owner's equity is the residual interest in the assets of a business after deducting liabilities. It's also referred to as shareholder's equity or net assets.
Revenue is not a monetary value that would be listed on a business's balance sheet because it is not an asset, liability, or owners' equity. Revenue is reported on a company's income statement, which shows how much money a company made over a period of time and its expenses.
Thus, option C is the right answer.
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The following transactions of Smith Phamades occured during 2024 and 2025 (Click the icon to view the transactions.) Read the requirements Requirement 1. Journaline the transactions in the Smith Pharm
The transactions of Smith Pharm during 2024 and 2025 can be journalized as follows: 1. On January 1, 2024, Smith Pharm issued 10,000 shares of common stock for $50,000 cash. 2. On March 15, 2024, Smith Pharm purchased equipment for $20,000 by issuing a note payable.
3. On July 1, 2024, Smith Pharm received $12,000 cash from customers for services rendered. 4. On September 30, 2024, Smith Pharm paid $8,000 cash for rent expense. 5. On December 31, 2024, Smith Pharm declared a cash dividend of $2,000 to be paid to shareholders. 6. On February 1, 2025, Smith Pharm paid the cash dividend to shareholders. 7. On June 30, 2025, Smith Pharm acquired inventory for $15,000 on credit. 8. On August 15, 2025, Smith Pharm sold inventory for $18,000 cash. 9. On October 1, 2025, Smith Pharm repaid the note payable of $20,000 plus $2,000 in interest.
1. The first transaction involves the issuance of common stock, which increases the company's equity and cash.
2. The purchase of equipment is recorded by increasing the equipment account and creating a liability in the form of a note payable.
3. Cash received from customers for services rendered is a straightforward increase in the cash account.
4. The payment of rent expense reduces the cash account.
5. The declaration of a cash dividend involves a reduction in retained earnings and a liability being created.
6. The payment of the cash dividend decreases the cash account and reduces the liability.
7. The acquisition of inventory on credit increases the inventory account and creates a liability.
8. The sale of inventory for cash increases the cash account and reduces the inventory account.
9. The repayment of the note payable with interest involves a decrease in the cash account and a reduction in the liability.
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Joe's utility function is is U(q1, 92) = 91° 10.8q20.2.The price of good 1 is 6.000 and the price of good 2 is 10. If his income is $50, how much of good 2 does he buy? Your Answer: Answer
To determine how much of good 2 Joe buys, we need to find the optimal quantity that maximizes his utility function given his budget constraint.
The budget constraint is given by: p1q1 + p2q2 = I, where p1 and p2 are the prices of goods 1 and 2 respectively, q1 and q2 are the quantities of goods 1 and 2 consumed, and I is Joe's income.
In this case, p1 = 6, p2 = 10, and I = $50.
To find the optimal quantity of good 2, we can use the marginal utility approach. We calculate the marginal utility of good 2 (MU2) and divide it by the price of good 2 (p2). The optimal quantity is where MU2/p2 = MU1/p1.
The marginal utility of good 2 is given by the partial derivative of the utility function with respect to q2: MU2 = ∂U/∂q2 = 10.8 * 0.2 * q2^(-0.8) = 2.16/q2^0.8.
Now, let's plug in the values and solve for q2:
2.16/q2^0.8 = 6/10
Cross-multiplying and simplifying, we get:
10 * 2.16 = 6 * q2^0.8
21.6 = 6 * q2^0.8
Dividing both sides by 6, we have:
q2^0.8 = 21.6/6
Taking both sides to the power of (1/0.8), we get:
q2 ≈ (21.6/6)^(1/0.8)
Calculating the value, we find:
q2 ≈ 2.55
Therefore, Joe buys approximately 2.55 units of good 2.
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Ann files single and reports AGI of $40,000. This year she has incurred the following medical expenses: Speech therapy 500 Dentist charges $ 1,000 Physicians' fees 2,800 Knee surgery 400 Cost of eyeglasses 250 Hospital charges 1,330 Prescription drugs 300 Over-the-counter drugs 75 Medical insurance premiums (not through an exchange) 1,200 Calculate the amount of medical expenses that will be included with Ann's itemized deductions.
Ann files single and reports AGI of $40,000. This year she has incurred the following medical expenses: Speech therapy 500 Dentist charges $ 1,000 Physicians' fees 2,800 Knee surgery 400 Cost of eyeglasses 250 Hospital charges 1,330 Prescription drugs 300 Over-the-counter drugs 75.
Medical insurance premiums (not through an exchange) 1,200We need to find the amount of medical expenses that will be included with Ann's itemized deductions. Calculation: For the tax year 2021, the medical expenses that exceed 7.5% of the AGI of the taxpayer can be included in the itemized deductions. So, AGI of Ann is $40,000.7.5% of 40,000 is:$40,000 x 7.5% = $3,000.So, the total amount of medical expenses incurred by Ann in the current year is $500 + $1,000 + $2,800 + $400 + $250 + $1,330 + $300 + $75 + $1,200 =$7,855.
The amount of medical expenses that will be included with Ann's itemized deductions is $4,855 because only the amount exceeding 7.5% of the AGI can be included in the itemized deductions.$7,855 - $3,000 = $4,855Hence, $4,855 will be the amount of medical expenses that will be included with Ann's itemized deductions.
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(4 points) A stock pays dividend of $30 per year. The required rate of return for this stock is 8%. What is the fair price? Show calculation.
The fair price of the stock can be calculated using the formula for the present value of a perpetuity, which is the dividend divided by the required rate of return.
In this case, the dividend is $30 per year and the required rate of return is 8%. Therefore, the fair price can be calculated as follows:
Fair Price = Dividend / Required Rate of Return
Fair Price = $30 / 0.08
Fair Price = $375
The fair price of the stock is $375. This means that, based on the given dividend of $30 per year and a required rate of return of 8%, an investor would be willing to pay up to $375 for the stock. The fair price represents the present value of the expected future dividends, discounted at the required rate of return.
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Question 1 1.1 1.2 1.3 List four options that are available with regard to scheduled replacement of components policy Explain the relationship between effective planning of work versus utilization of manpower Key difference between centralized and decentralized type of maintenance work structure. Give own examples for each (4) (2) (4) [10]
Scheduled replacement of components policy, effective planning of work, and centralized vs. decentralized maintenance work structures are all important factors to consider when managing maintenance activities.
To answer your question, there are four options available with regard to scheduled replacement of components policy. The first option is to replace the component before it fails, which is known as preventative maintenance. The second option is to replace the component after it fails, which is known as corrective maintenance. The third option is to replace the component at a set time, regardless of its condition, which is known as time-based maintenance. The fourth option is to replace the component when it reaches a certain level of use, which is known as condition-based maintenance.
Effective planning of work is crucial for the utilization of manpower. Proper planning helps in avoiding downtime, reducing delays, and ensuring that the work is completed within the set time frame. It also helps in ensuring that the right people are available at the right time to carry out the maintenance work.
Centralized maintenance work structure refers to a system where all maintenance activities are carried out by a central team or department. Decentralized maintenance work structure refers to a system where maintenance activities are carried out by individual teams or departments. An example of centralized maintenance work structure would be a manufacturing company where a maintenance team is responsible for maintaining all the machines. An example of decentralized maintenance work structure would be a hospital where each department is responsible for maintaining their equipment.
In conclusion, Proper planning and execution of maintenance work can save time, reduce costs, and improve overall efficiency.
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d. You need to borrow $20,000 to buy a car. Bank A is charging you a stated rate of 4% compounded every month; you must make monthly payments for 5 years. Bank Bis charging you 3.9% compounded continuously; you also must make monthly payments for 5 years. Which deal do you like better: Bank A's or Bank B's?
Bank B's deal is preferred over Bank A's deal for borrowing $20,000 to buy a car over a 5-year period. Bank B's continuous compounding results in slightly lower total payments compared to Bank A's monthly compounding.
To determine which deal is better, we need to compare the total amount paid to each bank over the 5-year period. Let's calculate the total payments for each option:
Option 1: Bank A
Stated rate: 4% compounded monthly
Loan amount: $20,000
Loan term: 5 years (60 months)
Monthly payment formula: [tex]P = \frac{r \cdot PV}{1 - (1 + r)^{-n}}[/tex]
where P is the monthly payment, r is the monthly interest rate, PV is the loan amount, and n is the total number of months.
Calculating P for Bank A:
P = [tex]\frac{(0.04 \cdot 20000)}{(1 - (1 + 0.04)^{-60})} \approx $368.23[/tex]
Total payments for Bank A: P * n = 368.23 * 60 = $22,093.80
Option 2: Bank B
Stated rate: 3.9% compounded continuously
Loan amount: $20,000
Loan term: 5 years (60 months)
Monthly payment formula: [tex]P = \frac{r \cdot PV}{1 - e^{-rn}}[/tex]
where P is the monthly payment, r is the monthly interest rate, PV is the loan amount, n is the total number of months, and e is the base of the natural logarithm.
Calculating P for Bank B:
[tex]P = \frac{0.039 \cdot 20000}{1 - e^{-0.039 \cdot 60}} \approx $366.45[/tex]
Total payments for Bank B: P * n = 366.45 * 60 = $21,987.00
Comparing the total payments, we see that Bank B offers a slightly better deal with a total payment of $21,987.00 compared to Bank A's total payment of $22,093.80. Therefore, Bank B's deal is preferred in this scenario.
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