Depreciation is a way of spreading out the cost of an asset over time, reflecting the expected usage of the asset and its declining value due to wear and tear, obsolescence, and other factors.
The amount of depreciation recognized in year 2 can be calculated as follows:
Calculate the total cost of the equipment: $20,000 + $360,000 + $10,000 = $390,000
Calculate the total depreciation amount over the 10-year life: $390,000 / 10 = $39,000 per year
Calculate the depreciation amount for year 2: $39,000 / 10 x 2 = $7,800
So, the amount of depreciation recognized in year 2 will be $7,800. Depreciation is an important concept in accounting and finance and is used to determine the value of a company's assets, to measure the performance of a company, and to make decisions about investments, capital expenditures, and financing. There are several methods for calculating depreciation, including straight-line depreciation, declining balance depreciation, and sum-of-the-years' digits depreciation. The most common method is straight-line depreciation, where the cost of the asset is allocated evenly over its useful life. For example, if a company purchases a piece of equipment for $100,000 and it has a useful life of 10 years, the straight-line depreciation would be $10,000 per year ($100,000 / 10). The calculation can be different depending on the method used and the assumptions made about the useful life and residual value of the asset.
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In one to two sentences, describe how you benefited from the career-development activity.
The way I benefited from the career-development activity is that it help me to improve and upgrade the neccessary skill for my career and this help me top be successful.
What is career-development activity?Career-development activity can be described as the activities that can be carried out by individual as well as organization which can help them to improve in their different career and this usually help them to succeed in thier field.
It should be noted that most of the people could be successful if they were been guided in their career by experts and this do help people to suceed alot.
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Who heads each of the branches of federal reserve banks and looks after their functioning?
Answer: The chair of the board, governors of the federal reserve system is the chief of the federal reserve which is the central banking system of the United States.
Answer:
Board of Governors
Explanation:
Which of the following ways is not something you can do to protect yourself against sending payments to the wrong person when using a p2p payment app or service
Use a PIN to access your P2P app or service. In this way we can do to protect ourselves against sending payments to the wrong person when using a p2p payment app or service.
What is P2P app or service?
Peer-to-peer services are platforms that link participants to a transaction directly, cutting out the middleman.
Peer-to-peer services use technology to reduce the transaction costs associated with asymmetries in information, enforcement, and trust that have historically been handled by relying on third intermediaries.
Peer-to-peer systems provide its customers with services including money processing, buyer and seller data, and quality assurance.
File-sharing platforms, such the music-sharing programme Napster, which debuted in 1999, helped popularise the peer-to-peer model of today. Millions of internet users were able to immediately connect, establish groups, and work together through the peer-to-peer movement to construct their own search engines, virtual supercomputers, and file systems.
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At December 31, 2019, Talbot Corporation had 90,000 shares of common stock and 20,000 shares of convertible preferred stock outstanding, in addition to 9% convertible bonds payable in the face amount of $2,000,000. During 2019, Talbot paid dividends of $2.50 per share on the preferred stock. The preferred stock is convertible into 20,000 shares of common stock. The 9% convertible bonds are convertible into 30,000 shares of common stock. Net income for 2019 was $970,000. Assume an income tax rate of 30%. How much is the diluted earnings per share for the year ended December 31, 2019
Answer:
Diluted Earnings per share= $6.9
Explanation:
Earnings per share is the return attributable to each unit of outstanding ordinary share.
It is computed as the Net Income/Number of ordinary shares outstanding
The diluted earnings per share is the EPS assuming all convertible securities were all converted.
Converted shares is computed as follows:
units
Preferred shares = 20,000
Convertible bonds = 30,000
Total 50,000
Total outstanding shares ranking for Earnings = Ordinary shares + Converted shares
= 90,000 + 50,000 = 140,000
Diluted Earnings per share = 970,000/140,000= $6.9
Diluted Earnings per share= $6.9
What helps a consumer determine the quantity of something to buy?
marginal cost
marginal error
marginal benefit
marginal comparison
Answer:
marginal cost
Explanation:
"Marginal cost" plays a role when it comes to the quantity that consumers may actually buy for a particular product. If a company decides to produce many bags of good quality at a lower price, the company will be able to save money because over time, they will tend to choose a bulk purchase in which they'll be able to save money. Thus, their marginal cost will decrease. In this case, they can also lower the price for each bag. So, this means that their bags will not be expensive for consumers to buy and the more quantity the consumers will be willing to purchase.
Answer: The answer should be:
A: marginal cost
Explanation:
Edge 2023
Hope this helps! (^_^)
Which of the following tasks would be completed by a radio announcer
Answer:
Research questions for interviewing guests.
Explanation:
A Radio Announcer has several responsibilities among which could be research questions for interviewing guests, and be the voice of the show, he would have to do troubleshooting, nor train customers, he shouldn´t need to install telecommunication equipment, so the only responsibility that the radio announcer would have from the options would be D) Research questions for interviewing guests.
Trading in foreign currency options would most likely be: __________
a. an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.
b. a multinational corporation.
c. someone traveling on vacation for two weeks abroad.
d. a firm in the import and export business.
There are different kinds of trade. Trading in foreign currency options would most likely be an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.
Currency option hedgesCurrency option hedges are known to be tools that are used in international business.An example, when an American importer is said to agree to buy some food equipment from a Chinese manufacturer at a later future date. The transaction will be carried out in Chinese currency.
The American importer has therefore made an hedge by buing currency options on the Chinese currency.
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help please and thank youuuuuu
Answer:
B I'm pretty sure sorry if I get it wrong
Answer:
sales tax
Explanation:
sales tax is a tax a costumer pays for certain goods and services
vegetables wilt of soften and their color intensifies as they
Answer: boil
Explanation:
Answer:
Saute
Explanation:
Vegetables wilt and soften when sauteing for example spinach, bokchoy and kale to name a few.
Assignment 2R: Customers, Inventory, and Safety Instructions
The three ways which most company uses to create a brand promise are through its:
Product Design and InnovationUser ExperienceCustomer Service.Description of ways that the company uses to create that brand promise:One well-known company that has a strong brand promise is Apple Inc. Apple's brand promise is centered around delivering innovative, high-quality products and services that offer a seamless, intuitive, and stylish user experience. The company aims to provide its customers with products that simplify their lives and enhance their ability to connect and express themselves in new and exciting ways.
Here are three ways that Apple creates and upholds this brand promise:
Product Design and Innovation: Apple is known for its sleek and stylish product designs, as well as its innovative approach to technology. The company invests heavily in research and development to bring new and exciting products to market, such as the iPhone, iPad, and MacBook.User Experience: Apple places a strong emphasis on the user experience. All of its products are designed to be easy to use, intuitive, and seamless. The company also offers a wide range of services, such as Apple Music, the App Store, and Apple Pay, that enhance the overall user experience.Customer Service: Apple has a reputation for providing exceptional customer service. The company operates a large network of retail stores that offer hands-on support and repair services, as well as a robust online support center. Apple also offers a warranty program that covers its products for a specified period of time, giving customers peace of mind.By consistently delivering on its brand promise, Apple has built a loyal customer base and a strong reputation as a company that provides innovative and high-quality products and services.
Missing words "You learned about customers, inventory, and safety. Now, you'll apply what youlearned.1. Choose a well-known company, and describe its brand promise. Describe at leastthree ways that the company uses to create that brand promise".
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A paper manufacturer is forced to make staff cutbacks because of declining profits. It decides to cut back each employee's hours and pay by one-half day per week rather than laying off two people. Senior managers believe that by allowing all their employees to keep their jobs, they are producing the greatest good for the greatest number of people. Which rule for ethical decision making does this example show
Answer:
Utilitarian
Explanation:
Utilitarianism is a morality theory that advocated the actions in order to foster the happiness and the actions that result harm or unhappiness could be opposed. It is an action that could be right so this would create a happiness for the larger no of people as a group or society as a whole
So as per the given situation, it is a utilitarian theory
assume that the marginal utilities for the first three units of a good consumed are 400, 375, and 320. what is the total utility of the first unit?
The total utility of the first unit is equal to the marginal utility of the first unit, which is 400.
The total utility of a good is the sum of the marginal utilities of all units consumed up to that point. In this case, we are given the marginal utilities for the first three units of a good as 400, 375, and 320.
To find the total utility of the first unit, we simply need to add the marginal utility of the first unit to zero (since there are no previous units to add to). Therefore, the total utility of the first unit is equal to the marginal utility of the first unit, which is 400.
In general, the total utility of the n-th unit is the sum of the marginal utilities of all units consumed up to that point, or TU_n = MU_1 + MU_2 + ... + MU_n.
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Thinking about your office or college, what types of
information are conveyed through the grapevine? How
often is the information accurate?
Answer: I would experience a lot of cluster chains speaking on if someone was in trouble. An employee would be called to the back office if they were either in trouble or getting a promotion.
Explanation:
How does the environment of both the new england and middle colonies affect their economies?.
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what is a business plan
Answer:
a document setting out a business's future objectives and strategies for achieving them
Explanation:
Charles is a manager at a coffee shop, and he has to decide how many workers to hire. one worker can make 25 drinks that sell for $5 on average in one hour. a second worker can make another 20 drinks in one hour. the marginal benefit of each additional worker decreases by five drinks, with each additional hire. given that workers are paid $15 per hour and have eight-hour shifts, how many employees should charles hire for each hour?
The manager of a coffee shop, Charles, must choose how many employees to hire. In an hour, one employee can produce 25 drinks with an average price of $5.
Briefing:-A second employee can produce 20 more beverages in one hour. With each extra hire, the marginal benefit of the employee falls by five drinks. Three people should Charles hire for each hour assuming that they are paid $15 per hour and work eight-hour shifts.
How can you mean by an hour?60 minutes is one of the 24 equally spaced out segments of a day.
Do you really mean one hour?a span of time that is equal to 60 minutes and one-fourth of a mean solar or civil day.
What do you call 45 minutes?Typically, 30 minutes are referred to as a half-hour, 15 minutes as a quarter-hour, and 45 minutes as a third of an hour.
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an organization's loyalty to its own product would be a competitive disadvantage in a(n) __________ market.
An organization's loyalty to its own product would be a competitive disadvantage in a dynamic or rapidly changing market. In such markets, adaptability and the ability to innovate and meet evolving customer needs are crucial for success
In dynamic markets, customer preferences, technologies, and market trends can change rapidly. Organizations that are overly loyal to their own product may become resistant to change and fail to adapt their offerings to meet evolving customer demands.
This can result in a loss of market share and a competitive disadvantage. In contrast, organizations that prioritize customer-centricity and continuously innovate their products or services based on market feedback and emerging trends are better positioned to thrive in dynamic markets. Their ability to quickly adapt and introduce new offerings gives them a competitive edge over competitors who are limited by their loyalty to a single product.
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What type of business is a sole proprietorship?
Answer: Hello: ) ✨
( Unincorporated Business )
A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.
Explanation:
Retail Trading Activities. Retail activities such as selling of grocery, household goods, merchandise, electric goods, .
Have a Nice day/night<3 .
1. Compare and contrast Mudharaba and Musharaka by giving suitable
examples
2. Critically analyze the policy of Mudharaba from sharia point of
view.
Mudharaba and Musharaka are both Islamic financial contracts, but they differ in terms of capital contribution and profit-sharing. Mudharaba involves one party providing the capital while the other party provides expertise and labor.
The profits are shared based on a pre-agreed ratio, while losses are borne by the capital provider. In Musharaka, both parties contribute capital and expertise, and profits and losses are shared based on the ratio of their contributions.
1. Mudharaba and Musharaka are two important Islamic financial contracts that have distinct features and purposes. Let's compare and contrast them using suitable examples:
Mudharaba:In Mudharaba, one party provides the capital (Rabb-ul-Maal) while the other party contributes expertise and labor (Mudarib).
The Mudarib manages the investment using their skills and knowledge.
The profits generated from the investment are distributed between the two parties based on a pre-agreed ratio, while the capital provider bears any losses.
For example, a person (Rabb-ul-Maal) invests a certain amount of money in a business venture managed by an entrepreneur (Mudarib).
The profits earned from the business are shared based on a predetermined ratio, such as 70% for the capital provider and 30% for the entrepreneur.
Musharaka:In Musharaka, both parties contribute capital and expertise to a joint venture.
The profits and losses are shared among the partners based on the ratio of their contributions.
All partners have the right to participate in the management and decision-making process of the venture.
For example, two individuals decide to start a business together. They contribute an equal amount of capital and share the profits and losses equally based on their partnership agreement.
2. From a Sharia point of view, the policy of Mudharaba can be critically analyzed. Sharia emphasizes fairness and justice in economic transactions. Some key points of analysis are as follows:
Consent: Mudharaba requires the consent of both parties, and the terms of the contract must be mutually agreed upon. The policy should ensure that both parties fully understand the terms and conditions and that there is no coercion or undue influence.
Profit and Loss Sharing: Mudharaba involves profit-sharing between the capital provider and the entrepreneur. The policy should ensure a fair distribution of profits based on the agreed ratio.
However, it is crucial to critically analyze whether the distribution ratio is just and reasonable, considering the level of effort, expertise, and risk involved.
Risk Allocation: In Mudharaba, the capital provider bears the losses while the entrepreneur faces minimal financial risk. The policy should ensure a balanced risk allocation that aligns with the principles of fairness and equity. It is essential to critically assess whether the risk distribution is in accordance with Islamic principles.
Transparency and Accountability: The policy should emphasize transparency in financial reporting and accountability of the Mudarib. Adequate mechanisms should be in place to monitor the performance of the investment and ensure the proper utilization of funds.
Compliance with Sharia Principles: The policy should align with the broader principles of Sharia, such as the prohibition of interest (riba), speculation (gharar), and unethical activities. The critical analysis should examine whether the Mudharaba policy adheres to these principles and promotes ethical financial practices.
In conclusion, critically analyzing the policy of Mudharaba from a Sharia point of view involves assessing aspects such as consent, profit and loss sharing, risk allocation, transparency, accountability, and compliance with Islamic principles.
It is essential to ensure that the policy aligns with the principles of fairness, justice, and ethical conduct in Islamic finance.
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A company has interest expense of $61,000, income taxes expense of $187,630, and net income of $290,000. The company's times interest earned ratio equals:
The company's times interest earned ratio equals 3.07.
What is interest?The fee paid for the privilege of borrowing money is called interest, and it is often stated as an annual percentage rate (APR). The compensation a lender or financial organization receives for giving out money is called interest. The percentage of a stockholder's ownership in a corporation that is also referred to as interest. Simple and compound interest rates are the two basic types that can be used with loans.Simple interest is a predetermined percentage of the principal that was initially lent to the borrower that the borrower must pay in exchange for access to the funds. Interest that is paid on a loan that includes both principal and compounding interest is known as compound interest. The second kind of interest is less typical than the first.Times Interest Earned Ratio = Income before Interest Expense and Income Taxes/Interest Expense.
Times Interest Earned Ratio = \(\frac{187630}{61000}\) = 3.07.
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Using the chart, identify an example of absolute advantage for the United States over either Country A or Country B. Be sure to identify the product and the country. Explain how the availability and use of a natural resource may impact advantage.
Answer:
Absolute advantage is the advantage that a country has when it can produce a particular good or service at a lower cost than other countries.
Explanation:
The United States, in particular, has absolute advantage in the production of oil. Currently, the U.S. is the largest oil producer in the world, with around 15 million barrels a day.
This advantage occurs because the United States has ample oil deposits, both conventional and non-conventional (non-conventional deposits are those that can only be exploited through fracking), and also because the U.S. has the technical capacity, both in terms of infrastructure and human capital, to exploit those oil deposits in a satisfactory manner, and more importantly, in a more efficient and cheaper way than most other countries in the world.
Development lp is a limited partnership that invests in residential real estate projects. Its limited partners include more than 150 sophisticated investors and investment professionals, including ethan. Ethan loses his limited liability if he:.
Ethan loses his limited liability if he participates in the firm’s management.
Who is a Limited Partner?A limited partner can be described as a part-owner of a limited partnership business who does not involve in the management of the partnership business.
The liability for the company's debts of a limited partner is limited to the amount invested in the business.
Limited partners are frequently referred to as "silent partners."
A limited partner is different from a general partner.
A general partner refers to a partner that is in charge of the day-to-day operations of the company, takes investment decisions on behalf of the company, and has unlimited liability for the company's debts and liabilities.
Therefore, Ethan will lose his limited liability if he participates in the firm’s management as he has become a general partner.
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Xavier is excited but knows this is a huge project. Help Xavier stay organized by creating a job board for him. A job board is like a bulletin board that holds important information about a big project. This way, he can see the important aspects of his job, along with his costs. To do this, you will be taking the answers to the math questions above and creating items that Xavier can hang on his job board to remind him of the choices he should make in this project. You may select to create your job board in poster form or digitally in a word processing document. Either way, the job board should include the following pieces of content:
A rough drawing of Xavier’s lot that includes the lot measurements provided above.
Make sure that you include the total area of the lot that you calculated in Math Problem 1 somewhere on this drawing.
A sketch of the prefabricated house option that you suggest Xavier purchases (either Option 1 or Option 2).
Make sure that you include his final price that you calculated in Math Problem 3 or 4.
Also, be sure to label the upgraded technology that was included in the option you chose so that Xavier can point it out to his building inspector when the time comes.
A graphic representation (photo, clip art, etc.) of a truck with the final transportation cost on it (this is the answer to Math Problem 5).
You will turn in this job board along with your math sheet.
Answer:
Great idea! Let's make Xavier's job board as informative and visually appealing as possible. We'll start by including a detailed drawing of Xavier's lot that includes all of the measurements provided in Math Problem 1. We'll also make sure to prominently display the total area of the lot that we calculated.
Next, we'll include a sketch of the prefabricated house option that we suggest Xavier purchases, along with the final price that was calculated in Math Problem 3 or 4. To make it even more clear for Xavier, we'll label the upgraded technology that was included in the option we chose so that he can easily point it out to his building inspector when the time comes.
To make the job board even more visually appealing, we'll include a graphic representation of a truck with the final transportation cost on it, which is the answer to Math Problem 5. This will help Xavier keep track of his costs and make sure that he stays within his budget.
Overall, Xavier's job board will be a useful tool to help him stay organized and make informed decisions throughout his project.
Explanation:
list five of the important accounting assumptions that have had an impact on the development of generally accepted accounting principles.
Five important accounting assumptions that impact GAAP are: Going Concern, Accrual Basis, Monetary Unit, Time Period, and Historical Cost, guiding financial reporting for consistency and accuracy.
Five important accounting assumptions that have had an impact on the development of generally accepted accounting principles (GAAP) are:
1. Going Concern Assumption: This assumption assumes that the entity will continue its operations in the foreseeable future. It allows accountants to prepare financial statements under the assumption that the company will not liquidate or go bankrupt.
2. Accrual Basis Assumption: The accrual basis assumption requires that transactions and events are recorded in the financial statements when they occur, regardless of when the cash is received or paid. It helps provide a more accurate representation of a company's financial performance and position.
3. Monetary Unit Assumption: The monetary unit assumption assumes that the financial transactions and events recorded in the financial statements are expressed in a stable currency, such as the U.S. dollar. It allows for the measurement and comparison of financial information over time and between different entities.
4. Time Period Assumption: The time period assumption assumes that the economic activity of an entity can be divided into specific time periods for financial reporting purposes. It allows for the preparation of financial statements on a regular basis, such as monthly, quarterly, or annually.
5. Historical Cost Assumption: The historical cost assumption requires that assets and liabilities are recorded at their original acquisition or production cost. This assumption provides reliability and verifiability to the financial statements, but it may not always reflect the current market value of assets and liabilities.
These accounting assumptions form the foundation of GAAP and help guide the recognition, measurement, and disclosure of financial information to ensure consistency, comparability, and relevance in financial reporting.
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For my business Beauty Essentials would writing personalized thank you cards be better for each customer or should I just write business cards and print them out and give the same ones? Also what are some good name ideas for products?
Answer:
Writing personalized thank you cards would be better for each customer because it would make the customer feel more appreciated since you put so much effort into making each thank you card. For the products, the name specifically depends on what the product is.
3. M&J has been successful so far because of word-of-mouth advertising. This method has allowed the company
to capture a substantial share of the local market of 18- to 28-year-old women, but the company is having
trouble expanding into new markets
By diversifying their marketing efforts, the company can increase brand awareness and ultimately capture a larger share of potential customers in new markets.
Word-of-mouth advertising has been a crucial factor in the success of M&J so far, especially in capturing the attention of 18 to 28-year-old women in the local market. However, as the company looks to expand into new markets, it needs to diversify its marketing strategy.
One way to achieve this is through targeted online advertising on social media platforms and search engines. By creating engaging content and using keywords that resonate with the target audience, M&J can attract new customers who may not have heard about the brand through word-of-mouth.
Another strategy is to collaborate with popular influencers who have a large following in the new market. These influencers can showcase M&J's products and services to their followers, thereby increasing the brand's visibility and credibility. Additionally, M&J can consider sponsoring local events or partnering with other businesses in the new market to increase its reach.
Overall, while word-of-mouth advertising has been successful for M&J in the past, expanding into new markets requires a more diverse and targeted marketing strategy.
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what would be the best way to make this list parallel? the team’s priorities for the month include the following: make updates to the project tracker alice and lowell will send satisfaction surveys to new customers editing the new owner’s manual thursday meetings
Make updates to the project tracker
Alice and Lowell will send satisfaction surveys to new customers
Editing the new owner's manual
Thursday meetings
start them all with present-tense verbs
Three main tenses of the verb
Examining the three primary verb tenses—past, present, and future—is the quickest way to get a handle on verb tenses.
Correct verb tenses are crucial because they have the power to completely alter the meaning of a statement. Check out this chart of verb tenses to view the past, present, and future tenses of more than 100 common verbs.
tenses of the past
A verb in the past tense informs you what the subject has previously accomplished. You use it to describe something that happened in the past, as the name would imply.
For instance, "He walked to the store foot." tells you that "he" arrived at the store already in the past tense.
Verb Forms in the Present
A verb in the present tense is an action term that describes what the subject is doing at the moment.
For instance, the phrase "He walks to the shop." tells you that "he" is now en route to the store on foot and employs the present tense of the verb "walk."
Present Perfect Verbs
A verb in the future tense tells you about an activity that will occur at some time but hasn't happened yet.
For instance, "He will walk to the shop." utilises the future tense of the verb "walk" to indicate that "he" intends to travel by foot to the store but hasn't yet started.
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ACTIVITY 2.
Identify and explain briefly the question below
1 What are the 4P's in marketing plan?Explain each
А__________
B__________
С__________
D__________
Answer:
A. Product
B. Price.
C. Place.
D. Promotion.
Explanation:
Marketing plan can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.
Generally, a marketing plan is made up of the four (4) Ps and these includes;
1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.
The typical American household owes approximately $8,000 in credit card debt. Assume you owe this amount today, will not to put another charge on your credit card, and will make the minimum payment until this debt is paid off. Your credit card has an APR of 18% and minimum payments are calculated as 2% of outstanding balance or $15, whichever is greater. Using two (2) decimal places for dollar amounts, determine: a) How many years will it take to pay the entire amount assuming you only make the minimum payments
According to recent studies, the typical American household owes approximately $8,000 in credit card debt. If you find yourself in this situation, it's important to have a plan to pay off this debt. Assuming that you will not add any more charges to your credit card and will only make minimum payments, it's crucial to understand how long it will take to pay off the entire amount.
With an APR of 18%, the minimum payment is calculated as 2% of the outstanding balance or $15, whichever is greater. Using these numbers, it would take approximately 27 years to pay off the entire $8,000 balance, and you would end up paying a total of $15,422.47, including $7,422.47 in interest charges.
This scenario highlights the importance of paying more than just the minimum payment each month. By paying even a small amount more each month, you can significantly reduce the amount of time it takes to pay off the debt and save yourself thousands of dollars in interest charges. It's important to have a plan in place to pay off credit card debt as soon as possible to avoid long-term financial problems.
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1. Calculate the Net Worth when Liabilities are $5,000 and Assets are $6,725