Answers
Answer:
1st → important and urgent
2nd → urgent, but not important
3rd → important but not urgent
4th → neither important nor urgent
Edit: I'm pretty sure this is it, but not entirely
Answer:
See below
Explanation:
1 important and urgent
2 urgent bit not important
3 important but not urgent
4 not important or urgent
Related Questions
Use the words innovative and ambitious in one sentence
Answers
Answer:
As a team, and as company, we try to be forward thinking, and ambitious in our approach with the technology , and innovative with new products to market to the consumer.
Explanation:
Able to use both words in a solid sentence structure.
Use the cost information below for Ruiz Inc. to determine the total manufacturing costs incurred during the year: Work in Process, January 1 $ 52,400 Work in Process, December 31 38,200 Direct materials used $ 13,700 Total factory overhead 6,700 Direct labor used 27,700 Multiple Choice
Answers
Answer:
$48,100
Explanation:
Computation of total manufacturing cost incurred during the year is seen below;
Direct materials used
$13,700
Direct labor used
$27,700
Total factory overhead
$6,700
Total manufacturing cost incurred
$48,100
Therefore, the total manufacturing cost incurred during the year is $48,100
Which of the following is a key consideration in selecting an allocation base?
a. The allocation base should have an indirect association with the cost objective.
b. The allocation base should be difficult to measure.
c. There should be logical association between the allocation base and the incidence of costs.
d. The allocation base should be out of the control of management.
Answers
Answer:
C. There should be logical association between the allocation base and the incidence of costs.
Explanation:
We define the allocation base as that quantity through which the overhead cost and be allocated to. This base is usually in the form of a quantity. It could be the kilowatts used in hours, or the machine hours used.
It should be able to show to a logical extent how the cost object used the resources to which it is assigned
Penny decided that the interest shown by the East Rutherford, N.J., Gay, Lesbian, Bisexual, and Transgender Alliance justified further research and the creation of a projected income statement as part of an evaluation of the feasibility of starting a business. She found a small industrial space she could rent for $1,000 per month. She estimated her initial need for employees to be a total of four, whom she would pay $10 an hour. A 40-hour work week was planned. She also budgeted $500 a week to pay herself. Assume everyone, including Penny, works 52 weeks per year. Her expenses associated with payroll (e.g., social security, unemployment insurance, fringe benefits) amounted to 20% of total compensation. Other expenses were estimated as:
Answers
Answer:
Total Annual Expense = $173040
Explanation:
Note: This question is incomplete and lacks the data and instruction for the question to solve it. I have retrieved its data from the internet. However, I will be solving this by using the data to find out the expenses portion of an annual income statement.
Solution:
Data Given:
Rent = $1000 of a month
Owner Salary = $500 per week
Employee Wages = $10 an hour
Total employees = 4
Working hours = 40 hours work week
Working weeks in year = 52 weeks.
Payroll Expense = 20% of the total compensation
Shipping = $250/week
Insurance = $50/week
Office Supplies = $25/week
Acct/Legal = $50/week
Utilities = $200/week
Misc = $100/week
Following is the expenses portion of an annual income statement for Penny blossoms:
Rent = $1000 x 12 = $12000
Owner Salary = ($500 x 4) x 12 = $24000
Employee Wages = $10 an hour = (10 x 40) x 52 x 4 = $83200
Payroll Expense = 20% of the total compensation = 20% x ($83200 + $24000) = $21440
Shipping = $250/week = (250 x 4) x 12 = $12000
Insurance = $50/week = (50 x 4) x 12 = $2400
Office Supplies = $25/week = 25 x 4 x 12 = $1200
Acct/Legal = $50/week = 50 x 4 x 12 = $2400
Utilities = $200/week = 200 x 4 x 12 = $9600
Misc = $100/week = 100 x 4 x 12 = $4800
Total Expense is the sum of all annual expenses.
Total Expense = $173040
Suppose the European and Japanese economies succumb to a recession and reduce their demand for U.S. goods for several years. Using AS/AD framework, explain the macroeconomic consequences of this shock, both immediately and over time.
Answers
Lewis Co. sold merchandise to AdCo for $60,000 and received $60,000 for that sale one month later. One week prior to receiving payment from AdCo, Lewis made a $10,000 payment to AdCo for advertising services that have a fair value of $7,500. After accounting for any necessary adjustments, how much revenue should Lewis Co. record for the merchandise sold to AdCo?
Answers
Answer:
$57,500
Explanation:
Calculation to determine how much revenue should Lewis Co. record for the merchandise sold to AdCo
Using this formula
Revenue=Transactions price-(Payment to advertisement -Fair value)
Let plug in the formula
Revenue=$60,000-($10,000-$7,500)
Revenue=$60,000-$2,500
Revenue=$57,500
Therefore the amount of revenue that Lewis Co. should record for the merchandise sold to AdCo is $57,500
roles of competition policy authorities in south Africa
Answers
Answer:
I hope you understand please follow me
discuss any 2 factors that you would consider when choosing the ideal type of investment
Answers
Answer:
The two factors that impact the choice of an ideal investment are returns on investment and investment period.
Time makes the difference between a successful investment and a bad investment choice. It is the time duration of an investment that dictates the expected returns on the investment.
Explanation:
The return on investment (ROI) is linked to the risks and volatility of the investment type. The investment period or term also affects the returns, risks, and volatility. Short-term investments are known for reduced returns, risks, and volatility. Other factors that impact the investment type that a decision-maker chooses, apart from these factors linked to risks and volatility, are liquidity, inflation, and tax implications.
On April 30, 2009, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value. Assume that in its financial statements, Tilton Products uses straight-line depreciation and rounds depreciation for fractional years to the nearest month. Total Accumulated Depreciation on this machinery at the end of 2010 will be:
Answers
Answer:
$16,667
Explanation:
Annual Depreciation = (Original Value - Residual Value) / Useful Life
Annual Depreciation = ($88,000 - $8,000) / 8
Annual Depreciation = $10,000 [Depreciation for 2010 = $10,000]
Depreciation for 2009 = $10000 * 8/12
Depreciation for 2009 = $6,667
Total Accumulated Depreciation = $10,000 + $6,667
Total Accumulated Depreciation = $16,667
So, the total accumulated depreciation on this machinery at the end of 2010 will be $16,667.
The money supply increased, and the AD curve did not shift to the right. This is consistent with the:________
a) monetarist transmission mechanism when there is a liquidity trap.
b) Keynesian transmission mechanism when there is a liquidity trap.
c) monetarist transmission mechanism when there is interest-insensitive investment.
d) Keynesian transmission mechanism when there is either a liquidity trap or interest-insensitive investment.
Answers
Answer:
b) Keynesian transmission mechanism when there is a liquidity trap.
Explanation:
Since the interest rate is so low, the public will have no incentive to deposit their cash into a bank or invest it in a company. This is a situation where the public will hold to their cash becasue they feel that a negative interest rate is possible. This type of situation could occur if the real interest rate is 0 and the public believes that the possibility of deflation exists and they will be better of by holding to their money.
Zordan Tools Corporation makes and sells brushes and combs. It can sell all of either product it can make. The following data are pertinent to each respective product: Brushes Combs Units of output per machine hour 8 20 Selling price per unit $12.00 $4.00 Product cost per unit Direct material $1.00 $1.20 Direct labor 2.00 0.10 Variable overhead 0.50 0.05 Total fixed overhead is $380,000. The company has 40,000 machine hours available for production. What sales mix will maximize profits
Answers
Answer:
Zordan Tools Corporation
Brushes Combs
The Sales mix that maximizes profits is 2,800 880
Explanation:
a) Data and Calculations:
Brush Comb
Units of output per machine hour 8 20
Selling price per unit $12.00 $4.00
Product cost per unit
Direct material $1.00 $1.20
Direct labor 2.00 0.10
Variable overhead 0.50 0.05
Total variable cost per unit $3.50 $1.35
Contribution margin per unit $8.50 $2.65
Contribution margin per hour $68 $53 ($2.65 * 20)
Contribution margin ratio = 0.56 0.44 ($53/$121)
Available machine hours for production = 40,000
Allocation of machine hours per
contribution margin = 22,400 17,600 (40,000 * 44%)
Units produced 2,800 880 (17,600/20)
Classified stock differentiates various classes of common stock, and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control.A. TrueB. False
Answers
Answer: True
Explanation:
Classified stocks are referred to as the stocks of a publicly-traded company which possess different classes of stocks. Classified shares typically has some special privileges, like the dividend rights and the enhanced voting rights.
The use of classified stock allows the founders of a company to have control over the company despite not having to own the majority of the common stock. Therefore, the correct option is True.
The decision to increase wages had a high probability of effect on Walmart’s success, illustrated by Multiple Choice pilot tests confirming that turnover would decrease. lawsuits that had been dropped. support from labor and worker rights groups. increased morale among all employees. flexible schedules, more training, and more HR personnel.
Answers
Answer: pilot tests confirming that turnover would decrease.
Explanation:
Companies that have a lower turnover of employees are generally more successful than companies that don't because these companies spend less on job training for new staff, have a staff that is more motivated and the presence of regular staff that bond with customers will inspire those customers to buy more.
Walmart engaged in pilot tests to confirm this theory and increased wages in several test locations. These locations became more successful after the wage increase and so Walmart decided to apply it across the board.
urgent................................................................................................
Answers
Answer:
Resources of economic value owned by the company
Explanation:
An asset is a resource controlled by the entity (company or business) and from which future economic benefits are expected to flow to the entity as a result of having this entity.
Assets can be divided into non-current and current assets. Non current assets are assets that are expected to be retained by the business for at least a year while current assets are assets that are constantly changing during the course of the business's activities.
On January 1, 20X1, Prim Inc. acquired all of Scrap Inc.’s outstanding common shares for cash equal to the stock’s book value. The carrying amounts of Scrap’s assets and liabilities approximated their fair values, except that the carrying amount of its building was more than fair value. In preparing Prim’s 20X1 consolidated income statement, which of the following adjustments would be made?a. Decrease depreciation expense and recognize goodwill amortization.b. Increase depreciation expense and recognize goodwill amortization.c. Decrease depreciation expense and recognize no goodwill amortization.d. Increase depreciation expense and recognize no goodwill amortization.2. The first examination of Rudd Corporation’s financial statements was made for the year ended December 31, 20X8. The auditor found that Rudd had acquired another company on January 1, 20X8, and had recorded goodwill of $100,000 in connection with this acquisition. Although a friend of the auditor believes the goodwill will last no more than five years, Rudd’s management has found no impairment of goodwill during 20X8. In its 20X8 financial statements, Rudd should reportAmortization Goodwill Expensea. $ 0 $100,000b. $100,000 $ 0c. $ 20,000 $ 80,000d. $ 0 $ 03. Consolidated financial statements are being prepared for a parent and its four subsidiaries that have intercompany loans of $100,000 and intercompany profits of $300,000. How much of these intercompany loans and profits should be eliminated?Intercompany Loans Profitsa. $ 0 $ 0b. $ 0 $300,000c. $100,000 $ 0d. $100,000 $300,0004. On April 1, 20X8, Plum Inc. paid $1,700,000 for all of Long Corp.’s issued and outstanding common stock. On that date, the costs and fair values of Long’s recorded assets and liabilities were as follows: Cost Fair ValueCash $ 160,000 $ 160,000Inventory 480,000 460,000Property, plant and equipment (net) 980,000 1,040,000Liabilities (360,000) (360,000)Net assets $1,260,000 $1,300,000In Plum’s March 31, 20X9, consolidated balance sheet, what amount of goodwill should be reported as a result of this business combination?a. $360,000.b. $396,000.c. $400,000.d. $440,000.
Answers
Answer:
Prima Inc.
1. c. Decrease depreciation expense and recognize no goodwill amortization
Rudd Corporation:
2. The amounts of Amortization and Goodwill Expense to be reported in Rudd's 20X8 financial statements are:
= d. $ 0 $ 0
3. The amount of the intercompany loans and profits that should be eliminated are:
. $100,000 $300,000
4. The amount of goodwill that should be reported as a result of this business combination is:
= c. $400,000.
Explanation:
Data and Calculations:
2. Recorded goodwill = $100,000
Estimated useful life = 5 years
Amortization and Goodwill Expense = $0
3. Intercompany loans = $100,000
Intercompany profits = $300,000
4. Long Corp.'s
Cost Fair Value
Cash $ 160,000 $ 160,000
Inventory 480,000 460,000
Property, plant and equipment (net) 980,000 1,040,000
Liabilities (360,000) (360,000)
Net assets $1,260,000 $1,300,000
Payment = $1,700,000
Goodwill (acquired) = $400,000 ($1,700,000 - $1,300,000)
U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 98,000 19,980 Labor (hours) 20,600 15,600 Raw materials (currency) $ 19,950 19,750 (FC) Capital equipment (hours) 59,250 5,600 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) c. Calculate raw material productivity figures (units/$ where $1
Answers
Answer:
a. Productivity = Sales /Labour Hour
U.S
Productivity = 98000 units/20600 hours
Productivity = 4.76
LDC
Productivity = 19980 units/15600 hours
Productivity = 1.28
Capital Productivity = Sales / Capital Equipment (Hours)
U.S
Capital Productivity = 98000 units/59250 hours
Capital Productivity = 1.65
LDC
Capital Productivity = 19980 units/5600 hours
Capital Productivity = 3.57
b. Multi-factor Productivity = Total Output (Sales) / (Labour Hours + Capital Equipment Hours)
U.S
Multi-factor Productivity = 98000 units/(20600+59250)
Multi-factor Productivity = 98000 units / 79850 hours
Multi-factor Productivity = 1.23
LDC
Multi-factor Productivity = 19980 units / (15600+5600)
Multi-factor Productivity = 19980 units / 21200 hours
Multi-factor Productivity = 0.94
c. Raw Material Productivity = Sales / Raw Materials Currency
U.S
Raw Material Productivity = 98000 units/$19950
Raw Material Productivity = 4.91
LDC
Raw Material Productivity = 19980 units / (19750 /10)
Raw Material Productivity = 19980 units / $1975
Raw Material Productivity = 10.12
2. The Lexington Property Development Company has a $10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is a. 9%
Answers
Answer:
$7721.83
Explanation:
the worth of the note today can be determined by calculating the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 and 2 = 0
Cash flow in year 3 = 10,000
I = 9%
PV = $7721.83
To determine the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
You bought a stock for $28.29 and sell it for $35 after four years. What was the true annual rate of return (compounded)
Answers
Answer:$1.68
Explanation:
During its first year of operations, Mack's Plumbing Supply Co. had sales of $620,000, wrote off $9,900 of accounts as uncollectible using the direct write-off method, and reported net income of $68,200. Determine what the net income would have been if the allowance method had been used, and the company estimated that 2% of sales would be uncollectible.
Answers
Answer:
$65,700
Explanation:
Calculation to determine Determine what the net income would have been if the allowance method had been used, and the company estimated that 2% of sales would be uncollectible.
Bad debt expense under allowance method = 2% of sales
Bad debt expense under allowance method= 620,000 x 2%
Bad debt expense under allowance method= $12,400
Excess of Bad debt expense under allowance method = Bad debt expense under allowance method - Bad debt expense under direct write off method
Excess of Bad debt expense under allowance method= $12,400 -$9,900
Excess of Bad debt expense under allowance method= $2,500
Net income under allowance method = Net income under direct write off method - Excess of Bad debt expense under allowance method
Net income under allowance method = $68,200 - $2,500
Net income under allowance method =$65,700
Therefore what the net income would have been if the allowance method had been used, and the company estimated that 2% of sales would be uncollectible is $65,700
Are executive pay levels unreasonable? Why or why not
Answers
Answer:
In my opinion, some corporate salaries for high-ranking executives are excessively high for the functions that these people have in these companies and the impact that their work has on their economy and on the well-being of society as a whole.
It is that, although we live in a capitalist, free and democratic society in which everyone has the right to earn the sum of money that their employer is willing to pay, the truth is that in certain cases (or in most cases ) Said salaries are not justified based on the contributions that said executives make in their day-to-day work.
On October 1, 2016, Adams Company paid $4,200 for a two-year insurance policy with the insurance coverage beginning on that date. As of December 31, 2016, which of the following account balances are correct after adjusting entries have been made?a. Prepaid insurance $4,200, and Insurance expense $0.b. Prepaid insurance $0, and Insurance expense $4,200.c. Prepaid insurance $2,100, and Insurance expense $2,100.d. Prepaid insurance $3,675, and Insurance expense $525.
Answers
Answer:
d. Prepaid insurance $3,675, and Insurance expense $525.
Explanation:
Preparation of the journal entry to determine which of the following account balances are correct after adjusting entries have been made
Based on the information given the account balances that are correct after adjusting entries have been made will be PREPAID INSURANCE $3,675, and INSURANCE EXPENSE $525.
First step is to calculate the amount the company pay per month
Amount pay per month=$4,200/24 months
Amount pay per month = $175 per month
Last step
Since Three months have been used which are October, November, and December which means that $175 per month × 3 months = $525 which will be recorded as INSURANCE EXPENSE while the balance in PREPAID INSURANCE will be $4,200 - $525 = $3,675
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Final Exam
MS: Career Explorations II (E) / Final Exam
is a surgery that uses a few small cuts and a camera to guide surgeons instead of a much larger incision.
Answers
Answer:
Try and make it more explanatory I don't understand
Daniel derives utility from only two goods, cake (Qc) and donuts (Qd). The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows: MUc = Qd MUd = Qc Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3. What is Daniel's budget constraint?
Answers
Answer:
240= 3Qc + 3Qd
Explanation:
The computation of the Daniel's budget constraint is shown below;
Given that
Daniel's income= $240
Price of cake (Pc) =$3
Price of donuts (Pd) =$3
So spending on cake = 3Qc
And,
Spending on donut= 3Qd
Finally
Total spending = 3Qc + 3Qd
Now the equation of budget constraint is
Income= (quantity of cake)(price of cake) + ( quantity of donut)(price of donut)
So,
Income= Qc Pc+ Qd Pd
240= 3Qc + 3Qd
The Daniel's budget constraint is shown below;
Given Information :
Daniel's income= $240 Price of cake (Pc) =$3 Price of donuts (Pd) =$3 Spending on cake = 3Qc Spending on donut= 3QdTotal spending = 3Qc + 3Qd
Now, the equation of budget constraint is
Income= (quantity of cake)(price of cake) + ( quantity of donut)(price of donut) Income= Qc Pc+ Qd Pd 240= 3Qc + 3QdLearn more :
https://brainly.com/question/24232944?referrer=searchResults
Megan Company has fixed costs of $429,450. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $320 $150 $170 Z 220 180 40 The sales mix for products Q and Z is 50% and 50%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers to the nearest whole number. a. Product Q fill in the blank 1 units b. Product Z fill in the blank 2 units
Answers
Answer:Break-even point (units)= 4,090units ,
a. Product Q -2,045 units
b. Product Z -2,045 units
Explanation:
Given
Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $320 $150 $170
Z 220 180 40
Using the formulae
Break-even point (units)= Total fixed costs / Weighted average contribution margin
But weighted Q contribution: $170 x 50% = $ 85
weighted Z contribution: $ 40 x 50% = $ 20
Total Mix contribution(Weighted average contribution margin)=$105
Break-even point (units)= $429,450/ $105
Break-even point (units)= 4,090units
Now, for each product:
Q= 4,090units x 50%= 2,045 units
Z= 4,090units x 50%= 2,045 units
Therefore,
a. Product Q -2,045 units
b. Product Z -2,045 units
1. How much is currently owed on this credit card?
a. $200
b. $245
c. $1,000
Answers
Answer:
What is the word problem??? (B)
Is it:
How much is currently owed on this credit card?
$200
$245
$1,000
Look at the Transactions section. Why is the refund marked with a positive sign?
You owe that amount on your credit card statement
You are receiving that money back onto your credit card statement
You paid that amount off last month
Before sending in your payment to the credit card company, you go to a bicycle store. How much can you spend before going over the credit limit on your card?
$0, you are already over your credit limit
$245
$755
Which of the following statements is FALSE?
If you pay the MINIMUM PAYMENT of $40.00, the bank will waive the interest charged on the balance you still owe.
If you are late in making your credit card payment, you may have to pay a $35 fee.
If you want to avoid any interest or fees, you should pay off your full statement balance by the due date.
Explanation:
Gander, Inc. is considering two projects with the following cash flows: Year Project X Project Y 0 ($100,000) ($100,000) 1 40,000 50,000 2 40,000 0 3 40,000 0 4 40,000 0 5 40,000 250,000 Gander uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less. a. If the projects are presented as stand-alone opportunities, which one(s) would Gander accept
Answers
Answer: Project X
Explanation:
Project X payback period:
Payback period if the inflow is constant = Investment amount / Annual inflow
= 100,000 / 40,000
= 2.5 years
Project Y payback period:
= Year before payback + Amount remaining / Cash inflow in year of payback
Project Y makes no inflows from year 2 to 4 and brings in a substantial amount in year 5. Year before payback must be 4 years therefore.
Amount remaining = 100,000 - 50,000 in first year
= $50,000
= 4 + 50,000 / 250,000
= 4.2 years
Project X will be chosen as its payback period is less than 3 years.
The following information pertains to Lightning Inc., at the end of the year:
Credit Sales $75,000
Accounts Payable 13,900
Accounts Receivable 8,200
Allowance for Uncollectible Accounts $900 credit
Cash Sales 24,000
Lightning uses the percentage-of-credit-sales method and estimates 4% of sales are uncollectible. What is the ending balance of the allowance account after the year-end adjustment?
$3,900
$4,860
$3,000
$2,100
Answers
Answer:
$3900
Explanation:
Calculation to determine the ending balance of the allowance account after the year-end adjustment
Balance in allowance for uncollectible account$ 900
Add Bad debts during the period $3,000
($75,000*4%)
Ending Balance in allowance for uncollectible account$ 3,900
($900+$3,000)
Therefore the ending balance of the allowance account after the year-end adjustment is $3900
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown in the following table.
Answers
Answer:
I don't know.
Explanation:
there is no table to see.
The Gardner Company expects sales for October of $247,000. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month of sale and 50% in the month following sale. Budgeted Accounts Receivable on September 30 is $67,500. What is the amount of cash expected to be collected in October
Answers
Answer: $74100
Explanation:
Based on the information given, the amount of cash expected to be collected in October will be calculated thus:
October, credit sales will be:
= 60% x $247000
= $148200
Since the amount that'll be collected in October will be 50% of the credit sales. This will be:
= 50% × $148200
= $74100
If 1200 dollars is invested at an annual interest rate r compounded monthly, the amount in the account at the end of 3 years is given by A = 1200 ( 1 + 1 12 r ) 36 . Find the rate of change of the amount A with respect to the rate r for the following values of r :
Answers
Answer:
a. When r = 4 percent, the rate of change is 22.10%.
b. When r = 7 percent, the rate of change is 41.76%.
Explanation:
Note: This question is not complete the required values of r is omitted. To complete the question, these values are therefore provided before answering the question as follows:
Find the rate of change of the amount A with respect to the rate r for the following values of r:
a. r = 4 percent
b. r = 7 percent
The explanation of the answer is now given as follows:
The A given is correctly stated as follows:
A = 1200 * (1 + ((1/12) * r))^60 ……………………….. (1)
Therefore, we have:
a. When r = 4 percent
Substituting r = 4% into equation (1), we have:
A = 1200 * (1 + ((1/12) * 4%))^60 = 1200 * 1.22099659394212 = 1465.20
Rate of change = (A - Amount invested) / Amount invested = (1465.20 - 1200) / 1200 = 0.2210, or 22.10%
Therefore, when r = 4 percent, the rate of change is 22.10%.
b. When r = 7 percent
Substituting r = 7% into equation (1), we have:
A = 1200 * (1 + ((1/12) * 7%))^60 = 1200 * 1.41762525961399 = 1701.15
Rate of change = (A - Amount invested) / Amount invested = (1701.15 - 1200) / 1200 = 0.4176, or 41.76%
Therefore, when r = 7 percent, the rate of change is 41.76%.