The total overhead variance of Davis Company using the one-variance approach is $4,325 U. The correct option is c. $4325 U.
Steps to calculate the total overhead variance using the one-variance approach:
Step 1: First, calculate the budgeted overhead for the period.
Budgeted overhead = Budgeted variable overhead + Budgeted fixed overhead
Budgeted overhead = $8,000 + $18,000
Budgeted overhead = $26,000
Step 2: Then, calculate the actual overhead incurred during the period.
Actual overhead = Actual variable overhead + Actual fixed overhead
Actual overhead = $9,000 + $18,000
Actual overhead = $27,000
Step 3: Finally, calculate the total overhead variance.
Total overhead variance = Actual overhead - Budgeted overhead
Total overhead variance = $27,000 - $22,675
Total overhead variance = $4,325 U
Therefore, the total overhead variance of Davis Company using the one-variance approach is $4,325 U. The correct option is c. $4325 U.
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Your store has an average time of 90 seconds toprocess a sales transaction. There are three customers in line to check
out. How much time will have passed when the last sales transaction is complete?
Answer: 270 Seconds
Explanation: 90 seconds x 3 customers = 270 seconds Hope this helped :)
under the army maintenance management system which type of record
Yes, Under the Army Maintenance Management System, the Maintenance Work Order is a type of record.
The Army Maintenance Management System (TAMMS) is a mechanism used to manage maintenance and track maintenance equipment in the United States Army.
It includes various processes for generating and monitoring work orders, tracking equipment, and collecting data for the upkeep of military equipment. The Maintenance Work Order is one of the most important records used in TAMMS to record maintenance work performed on military equipment.An authorized person such as the unit commander or the first sergeant must sign this form.
The maintenance work order document consists of pertinent information, including the date, unit identification code (UIC), equipment or serial number, and the type of service required. Other data that are also included are information on preventive maintenance, status of parts ordered, and a section for comments, remarks, and recommendations. The Maintenance Work Order is an essential record for the maintenance personnel to complete the work on the equipment and for the commander or first sergeant to know what work has been performed.
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Under the army maintenance management system which type of record ?
Yes/No
When preparing a business message, you should make your writing audience oriented. Audience oriented means a. attempting to get your audience to believe and accept your message. b. writing to solve a problem or convey information. c. presenting ideas clearly but concisely. d. concentrating on looking at the message from the receiver's perspective.
Answer:
D. Concentrating on looking at the message from the receiver's perspective.
Explanation:
When writing a business message, it is important to ensure that the perspective of the receiver is considered. There are two sides to a message; the speaker and the receiver. By making a business writtings audience oriented, it means that thoughts of the receiver or audience is considered alongside the message.
Although other skills such as; present ideal clearly but concise, attempt to get your audience to believe and accept your message, write to solve a problem or convey information are essential qualities of business writtings, yet do not point to audience oriented message.
FILL IN THE BLANK. Scenario C. Gabriel, chief executive officer of Chesapeake Financial Inc., sends a memo to his vice presidents regarding new procedures for annual performance reviews. The vice presidents meet informally to discuss the new procedures. When the new procedures are announced to the other employees, they form feedback teams, and these teams draft memos providing feedback to the vice presidents and Gabriel regarding the advantages, disadvantages, and potential problems with the new procedures.
The feedback memos sent by the teams of employees to the vice presidents and Gabriel are examples of ______ communication.
The feedback memos sent by the teams of employees to the vice presidents and Gabriel are examples of upward communication.
Upward communication is the flow of information from lower levels of an organization to higher levels. In this scenario, the employees are providing feedback to the vice presidents and Gabriel, who are in higher positions within the company.
This is an example of upward communication because the information is flowing from the employees to the executives. It is important for organizations to have effective upward communication in order to ensure that the concerns and suggestions of employees are heard and taken into consideration.
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______ is the single most important source of capital for most new companies.
Group of answer choices
Trade credit
Common stock
A Treasury bill
A floating-rate bond
Commercial paper
Trade credit is the single most important source of capital for most new companies. Trade credit is the credit extended by one trader to another for the purchase of goods or services.
Trade credit refers to the credit extended by suppliers and vendors to a company for the purchase of goods and services. It is an important source of short-term financing for many businesses, as it allows them to obtain the necessary goods and services to operate their business without having to pay for them immediately. Trade credit is typically extended on a net-30 or net-60 day basis, meaning that the buyer has 30 or 60 days to pay for the goods or services received.
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FVA =PMT((1+(r/12)∧t(12))−1)/(t/12) PVA =PMT((1−(1+([/12))∧−t(12)))/((/12) Using the formulas above, calculate the following 3) You just bought a yacht and your MONTHLY payments are $3,662.55 which you got a loan from your local bank at a rate of 9% annually for 8 years. How much did you pay for the yacht? Round to the nearest DOLLAR.
The cost of the yacht is $348,484, given monthly payments of $3,662.55, a loan rate of 9% annually, and an 8-year loan term.
The total amount paid for the yacht can be calculated using the Present Value of an Annuity (PVA) formula. The monthly payment is $3,662.55, the interest rate is 9% annually, and the loan duration is 8 years. By applying the PVA formula, the final amount paid for the yacht can be determined, rounded to the nearest dollar.
To calculate the total amount paid for the yacht, we can use the Present Value of an Annuity (PVA) formula. The PVA formula calculates the present value of a series of equal periodic payments. In this case, the monthly payments are $3,662.55, the loan has an annual interest rate of 9%, and the loan duration is 8 years.
Using the given formula: \(PVA = PMT * ((1 - (1 + (r/12))^{(-t*12))) / ((r/12)} )\)Substituting the given values:\(PVA = 3662.55 * ((1 - (1 + (0.09/12))^{(-8*12))) / ((0.09/12} ))\)Evaluating this expression will provide the present value of the payments made for the yacht. Rounding the result to the nearest dollar will give us the final amount paid for the yacht.
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When drawing a portrait, you want to make sure that the face you are drawing is _____________ (the right size).
Answer:
The right size
Explanation:
A sample of (S)-( )-lactic acid was found to have an enantiomeric excess of 72%. How much R isomer is present in the sample
The R isomer is present in the given sample of (S)-(-)-lactic acid is 14%
In the given sample of (S)-(-)-lactic acid with an enantiomeric excess of 72%, the amount of R isomer present can be calculated as follows:
Enantiomeric excess (ee) = (Amount of major enantiomer - Amount of minor enantiomer) / Total amount of enantiomers
Since the enantiomeric excess is 72%, it means that the difference between the major (S) and minor (R) enantiomers is 72%. To calculate the percentages of S and R enantiomers, use the following:
(S% - R%) = 72%
(S% + R%) = 100% (total amount of enantiomers)
By solving these equations, we get:
2S% = 172%
S% = 86%
R% = 86% - 72%
R% = 14%
Therefore, 14% of the R isomer is present in the given sample of (S)-(-)-lactic acid.
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a company has 20,000 shares of $10 par stock outstanding and declares a stock dividend of 8%. the number of shares outstanding will increase by
The number of shares outstanding will increase by 1,600.
A stock dividend is a distribution of additional shares of stock to existing shareholders. In this case, the company has 20,000 shares of $10 par stock outstanding and declares a stock dividend of 8%.
To determine the number of additional shares issued, we first calculate the total value of the dividend.
The value of the dividend is 8% of the total value of the outstanding shares, which is:
0.08 x ($10 x 20,000) = $16,000
This means that the company will issue $16,000 worth of new shares as the stock dividend. Since each share has a par value of $10, the number of new shares issued will be:
$16,000 / $10 = 1,600
Therefore, the number of shares outstanding will increase by 1,600 as a result of the stock dividend. After the dividend, the company will have a total of 21,600 shares outstanding (20,000 + 1,600).
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shew Atempt History? Current Artenpt in Progress In July, normally as lack manufacturing month, fvanhoe Sports receives asperial order for 10,000 basketballs at $29 each from the unit because of shipping costs but would not increase fued costs and expenses.
Vanhoe Sports Company received a special order for 10,000 basketballs in July for $29 each, although it is not a regular manufacturing month. However, due to the shipping costs, the unit cost was not increased, which did not raise the fixed costs and expenses.
The history behind this can be explained as follows:Vanhoe Sports is a sports equipment manufacturing company that produces a variety of sports-related products, including basketballs, baseballs, volleyballs, and so on. Although they are not a regular manufacturer of basketballs, they received a special order of 10,000 basketballs, which was huge.The company accepted the order at $29 per basketball, but they did not increase the unit cost even though shipping costs were involved. Shipping costs are variable costs that affect the cost of production directly. As a result, even though the unit cost remains the same, the company will have to pay an additional shipping cost for the basketballs.The company made a wise decision by accepting the order because it would allow them to make a profit, although their fixed costs and expenses would not increase, and because it was a special order, it would not be a regular thing. This will result in additional revenue and will help the company grow in the long run.
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HOSA and SkillsUSA-VICA are examples of what type of organization?
answer choices
O professional organizations
O Student organizations
O community organizations
O civic organizations
HOSA and SkillsUSA-VICA are examples of student organizations. Here option B is the correct answer.
HOSA (Health Occupation Students of America) and SkillsUSA-VICA (formerly known as Vocational Industrial Clubs of America) are student organizations that provide career and technical education students with opportunities to develop leadership, technical, and employability skills.
They are both student-led organizations that focus on preparing students for careers in the health sciences, technical and professional fields, and other areas of the workforce.
They organize competitions, and conferences, and provide professional development opportunities for students. These organizations are often found in high schools, vocational schools, and colleges. Professional organizations are groups of professionals in a specific field who come together to share knowledge, and resources and advocate for their profession.
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You have won a labor contract negotiation with 7.6% pay increase retroactive for six months. Write a program in C# that gets the employee's previous annual salary as initial pay (20points) and outputs the amount of retroactive pay due to the employee (20 points), the new annual salary (20 points), and the new monthly salary (20 points). Use variables (20 points) to store previous annual salary, retroactive pay, new annual salary, and new monthly salary. Sample Screen Display: Congratulations! You won an annual increase in pay as much as 7.6%. There is more! This pay raise is RETROACTIVE! (This increase will be applied to your past six pay.) Now please tell me your last year's annual salary: 54900 Based on your last year's annual salary of $54,900 Your six months' retroactive pay is: $2,086.20 Your new annual salary will be: $59,072.40 And your new monthly salary will be: $4,022.70
Here is the solution to the given problem:Solution:using System; class Program { static void Main(string[] args) { Console.WriteLine("Congratulations! You won an annual increase in pay as much as 7.6%. There is more! This pay raise is RETROACTIVE!"); Console.Write("Now please tell me your last year's annual salary: $"); double initialSalary = Convert.ToDouble(Console.ReadLine()); double retroPay = initialSalary * 0.076 / 2; double newAnnualSalary = initialSalary + initialSalary * 0.076; double newMonthlySalary = newAnnualSalary / 12; Console.WriteLine("\nBased on your last year's annual salary of ${0:0.00}", initialSalary); Console.WriteLine("Your six months' retroactive pay is: ${0:0.00}", retroPay); Console.WriteLine("Your new annual salary will be: ${0:0.00}", newAnnualSalary); Console.WriteLine("And your new monthly salary will be: ${0:0.00}", newMonthlySalary); Console.ReadLine(); } }Explanation:The given program is written in C# language that is used to calculate the retroactive pay, new annual salary, and new monthly salary of an employee.
The program first reads the initial annual salary of an employee using Console.ReadLine() method and stores it in a variable called initialSalary.The retroactive pay is calculated by multiplying the initialSalary with 0.076 and then divided by 2. The result is stored in a variable called retroPay.The new annual salary is calculated by adding initialSalary with the multiplication of initialSalary with 0.076. The result is stored in a variable called newAnnualSalary.The new monthly salary is calculated by dividing newAnnualSalary with 12. The result is stored in a variable called newMonthlySalary.Finally, the results are displayed using Console.WriteLine() method along with string literals and variables.
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direct claim messages are considered messages. messages include refusals and other types of bad news. a sales pitch is an example of a message.
The correct option is A, Direct claim messages are considered persuasive messages. inward messages encompass refusals and different kinds of bad news. An income pitch is an instance of a tremendous message.
Bad news refers to information that is negative or unfavorable, often causing feelings of disappointment, sadness, or despair. It could be about a variety of subjects, such as health, relationships, finances, work, or personal life.
Receiving bad news can be emotionally challenging, and it is a natural response to feel upset, angry, or even hopeless. It is important to acknowledge these emotions and give yourself time to process the news before making any decisions or taking any actions. Bad news can have a significant impact on an individual's mental and physical health, as well as their overall well-being. However, it is important to remember that bad news does not define a person's worth or ability to overcome challenges.
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Direct claim messages are considered________ messages. _________ messages encompass refusals and different kinds of bad news. An income pitch is an instance of a_________ message.
A). persuasive, inward, tremendous
B). prison, terrible, dangerous
C). insincere, persuasive, high quality
Which one is it?
Subject: Economics
Foolproof Module 6
Answer:
True.
Explanation:
A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.
A 0% interest credit card refers to a credit card that has no interest charged on it for a specific period of time, usually between twelve (12) and twenty-one (21) months.
Thus, a credit card holder with a 0% interest won't have to pay interest on any purchase for the duration of the incentive.
However, the 0% interest card holder is still required to make monthly minimum payments and must be made promptly.
Hence, if you make a late payment on a 0% interest card, you're responsible for paying the entire interest from the time you opened the card.
the eoq is the smallest lot size that a supplier will allow a customer to order. T/F
False.
The Economic Order Quantity (EOQ) is not determined by the smallest lot size that a supplier will allow a customer to order. The EOQ is a formulaic calculation used to determine the optimal order quantity that minimizes the total inventory costs, considering factors such as ordering costs, holding costs, and demand rate. It helps find the balance between inventory holding costs and ordering costs.
The supplier may have their own minimum order quantity requirements, which could be different from the EOQ. These requirements are set by suppliers to optimize their own operations, production, or logistics processes. The EOQ, on the other hand, is a calculation made by the customer to determine the most cost-effective order quantity based on their own inventory management needs.
The Economic Order Quantity (EOQ) is a mathematical formula used in inventory management to determine the optimal order quantity that minimizes total inventory costs. The formula takes into account various factors such as the cost of placing an order, the cost of holding inventory, and the demand rate for the product.
The EOQ formula is based on the following assumptions:
1. Demand is constant and known with certainty over the given time period.
2. The lead time for replenishing inventory is constant.
3. The cost per unit remains constant regardless of the order quantity.
4. The only costs considered are ordering costs and holding costs.
5. There are no quantity discounts or price breaks.
By calculating the EOQ, a business can determine the ideal quantity to order each time to minimize the costs associated with ordering and holding inventory. It helps strike a balance between the costs of ordering too frequently (resulting in high ordering costs) and ordering in large quantities (leading to high holding costs).
While the EOQ calculation is an important tool in inventory management, it is not directly linked to the minimum order quantity set by a supplier. Suppliers may have their own minimum order requirements, which can be influenced by factors such as production efficiency, logistics considerations, or profit margins. These minimum order quantities are independent of the EOQ and are specific to the supplier's policies and constraints.
Therefore, the EOQ is not necessarily the smallest lot size that a supplier will allow a customer to order. The EOQ is a calculation made by the customer to determine the most cost-effective order quantity, whereas the supplier's minimum order quantity is determined by their own operational considerations.
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describe the picture below and give it uses.
Answer:
forklift??
Explanation:
Sorry if not, but its used to carry heavy objects one place to another
ation in Business organizations
5
Select the correct answer.
Which phrase correctly defines the motives of a business?
OA. satisfying the needs of people
OB. helping a country's economy grow
OC. incurring expenses
OD. earning profits and providing value in the form of goods or services
Answer:
D. earning profits and providing value in the form of goods or services
Explanation:
Businesses are set-up to make profits. Entrepreneurs risk their resources, capital, and time with expectations to make a profit. For a business to be profitable, it must offer products or services that provide solutions to customers' problems. The reward or motivation that business people get for engaging in business is the profits realized.
Businesses face competition from other businesses offering the same products and services. To remain relevant and profitable, it must offer goods and services that give satisfaction to the customers.
Can an offer can be assigned?
Answer:
yes
Explanation:
What will the real value of $100 be in 7 years if you hide the money under your mattress and the inflation rate is 2%
The real value of the money after 7 years, if the money is hidden under the mattress and the inflation rate, is $ 86. 81.
How to find the real value ?If the inflation rate is 2%, the value of money is expected to decrease by 2% per year.
In 7 years therefore, you can use the future value formula to find the real value of the money to be :
= Value today x ( 1 - rate ) ^ number of years
This gives:
= 100 x ( 1 - 2 % ) ⁷
= $ 86. 81
This means that if you hide $100 under your mattress today, in 7 years, its real value will be $86.81 in terms of what it can buy.
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At what price will the stock reach an ""equilibrium"" at which it is perceived as fairly priced today?.
it's equilibrium price is $55.75.
An equilibrium rate is a balance of demand and grant factors. There is a tendency for expenditures to return to this equilibrium except some characteristics of demand or supply change. Changes in the equilibrium price manifest when both demand or supply, or both, shift or move.
How do you discover equilibrium price?To find the equilibrium rate a mathematical system can be used. The equilibrium fee components is primarily based on demand and furnish quantities; you will set volume demanded (Qd) equal to quantity supplied (Qs) and resolve for the price (P). This is an instance of the equation: Qd = one hundred - 5P = Qs = -125 + 20P.
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https://brainly.com/question/22569960#SPJ4How do you calculate each employee's gross pay?
To calculate an employee's gross pay, multiply the employee's hourly rate or salary by the number of hours worked or the agreed-upon pay period.
Determine the employee's hourly rate: If the employee is paid on an hourly basis, multiply their hourly rate by the number of hours worked in the pay period. For example, if the hourly rate is $15 and the employee worked 40 hours, the basic pay would be $15/hour * 40 hours = $600.
Calculate overtime pay: If the employee worked more than the standard hours in a workweek or exceeded the threshold for overtime, calculate any additional pay based on the overtime rate. The overtime rate is typically 1.5 times the regular hourly rate. For example, if the employee worked 45 hours and the overtime rate applies after 40 hours, you would calculate 5 hours * $15/hour * 1.5 = $112.50.
Include additional earnings: Add any additional earnings to the basic pay. This may include bonuses, commissions, or incentive payments. For example, if the employee earned a $100 bonus, you would add it to the basic pay: $600 + $100 = $700.
Subtract deductions: Deduct any pre-tax or post-tax deductions from the total earnings. Common deductions include taxes, healthcare premiums, retirement contributions, and other voluntary deductions. The resulting amount is the gross pay.
It's important to note that specific calculations may vary depending on factors such as local labor laws, company policies, and any additional compensation components. Therefore, it's always recommended to consult relevant regulations and your organization's payroll procedures for accurate calculations.
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Mining Companies have a major role to play in facilitating and promoting the culture of equality and therefore eliminating Gender based violence from the workplace and communities that host/ border mining project developments. a) What are some of the reasons that you believe gender based violence has become so prevalent on mining sites and in surrounding communities. (5 marks) b) During the screening phase of an EIA project in Guyana concerns were raised by villagers in the area about "Increased incidences of sexual exploitation of indigenous women and young girls by people who have come into the communities to work for the company."
Gender-based violence has become prevalent on mining sites and in surrounding communities due to a combination of factors such as male-dominated work environments, social and economic inequalities, lack of awareness and education, limited access to support services, and a culture of impunity.
Gender-based violence on mining sites and in surrounding communities can be attributed to several reasons. Firstly, the mining industry is historically male-dominated, with a significant gender imbalance in the workforce. This power dynamic can perpetuate harmful attitudes and behaviors towards women, leading to increased incidents of violence.
Secondly, mining projects often bring rapid social and economic changes to communities, resulting in unequal power dynamics and social tensions. These changes can disrupt traditional gender roles and exacerbate existing gender inequalities, making women and girls more vulnerable to violence.
Thirdly, the lack of awareness and education about gender issues and violence prevention contributes to the prevalence of gender-based violence. Limited knowledge about consent, healthy relationships, and gender equality can perpetuate harmful norms and behaviors.
Furthermore, the remote locations of many mining sites can limit access to support services and justice systems. This lack of resources and infrastructure can prevent survivors from seeking help and perpetrators from being held accountable, perpetuating a culture of impunity.
Lastly, the overall culture and norms within the mining industry and surrounding communities play a significant role. If there is a lack of commitment from mining companies to prioritize gender equality, enforce policies against violence, and promote a safe and inclusive work environment, it can contribute to the prevalence of gender-based violence.
In conclusion, gender-based violence on mining sites and in surrounding communities is a complex issue influenced by multiple factors. Addressing this problem requires a comprehensive approach that involves creating gender-inclusive work environments, promoting education and awareness, strengthening support services, and holding perpetrators accountable. By actively working towards equality and addressing the root causes of violence, mining companies can play a crucial role in eliminating gender-based violence from their workplaces and the communities they operate in.
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calculate the percentage by mass of all the components element in sodium trioxonitrate(v)
Sodium =27.05
Nitrogen=16.47
Oxygen=56.46
Loptech, a technology firm, wants to issue bonds for investment purposes. Loptech has one of the best credit ratings in the industry. Market rates for debt instruments average at .5% interest. Based on its credit rating, Loptech would likely sell bonds that pay _____.
0.25%
Indeterminable with current information
0.5%
0.75%
Answer:
The best option available is:
0.25%
Explanation:
Since Loptech has a great credit rating, it will pay a very low interest rate, at least lower than the average. Since the average interest rate is 5%, you should expect them to pay less than 5%. You cannot determine exactly what interest rate they will pay but if we consider the available options, the best choice is 0.25%.
Credit ratings work similarly for people and companies, e.g. the average interest rate charged by credit cards is around 14.5%, but people with very high credit scores, like 800 or so, will generally pay between 8-10% interest rates, while people with very low credit scores will pay over 20%.
According to the law of supply what's the result of an increase in the supply of workers for a job if all other factors remain equal?
Answer:
According to the law of supply, an increase in the supply of workers for a job if all other factors remain equal means the company wants to be efficient and it is also proof that the company is making more profit which signals the demand for the commodities they produced as increased drastically.
Explanation:
The law of supply work in the dimension of price, the number of goods available in the market, and it is hugely affected by demand. Now, when the price of goods decreases, it makes production by producers decrease as well and staffs are also laid off to avoid profit loss by the producers. This changes when the price of commodity increases as it makes producers of the commodity have the capacity to employ more staff to maximize time and this also causes the producers to increase sales. However, the higher demand for a commodity would also increase the supply of that commodity.
Answer:
The wage rate for that job will be pushed down.
Explanation: I just took the test and got it right
Which of the following gas satisfaction measures wWhich of the following gas satisfaction measures would Be this for a company to use if they want to estimate how many customers might recommend them to their friends?
CES
CSAT
PSC
NPS
Answer:
Simple Random Sample
Explanation:
From each paycheck of your afterschool job, you’re able to save $45 toward the coat. You get paid twice a month. How many months will it take you to save enough money to buy your North Face jacket.
Answer:4
Explanation:The total in 4 months would equal 360
4 months will it take you to save enough money to buy your North Face jacket.
Saving per month based problem;What information do we have?
Amount save per paycheck = $45
Amount of jacket = 350 (Missing data)
Amount save per month = 2 × Amount save per paycheck
Amount save per month = 2 × 45
Amount save per month = $90
Number of months need = 350 / 90
Number of months need = 3.88
Number of months need = 4 months
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The range of operations that falls within the capacity of the current level of fixed costs is referred to as the:
A relevant range means the range of operations that falls within the capacity of the current level of fixed costs.
What is a relevant range?In manufacturing, this range means the specific activity level that is bounded by a minimum and maximum amount.
In other word, its is also the level of activity that a company is expected to operate within.
Hence, the relevant range is the range of operations that falls within the capacity of the current level of fixed costs.
Therefore, the Option A is correct.
Missing options "a. Relevant range b. Marginal range c. Operating range d. Linear average"
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A job application is a form used to make a job request. (3 points)
True
False
Answer:
I would say it is True.
Explanation:
A job application form states your personal information
Twelve years ago, the Archer Corporation borrowed $6,000,000. Since then, cumulative inflation has been 80 percent (a compound rate of approximately 5 percent per year). a. When the firm repays the original $6,000,000 loan this year, what will be the effective purchasing power of the $6,000,000? (Hint: Divide the loan amount by one plus cumulative inflation.) (Do not round intermediate calculations and round your answer to the nearest whole dollar.) b. To maintain the original $6,000,000 purchasing power, how much should the lender be repaid? (Hint: Multiply the loan amount by one plus cumulative inflation.) (Do not round intermediate calculations and round your answer to the nearest whole dollar.)
a) When the firm repays the original $6,000,000 loan this year, the effective purchasing power of the $6,000,000 will be $3,333,333. b) To maintain the original $6,000,000 purchasing power, the lender should be repaid $10,800,000.
a) The calculation is as follows:
Effective purchasing power = $6,000,000 / (1 + 0.80)
Effective purchasing power = $3,333,333
Therefore, the effective purchasing power of $6,000,000 after 12 years is $3,333,333.
b) The calculation is as follows:
Amount repaid to the lender = $6,000,000 x (1 + 0.80)
Amount repaid to the lender = $10,800,000
Therefore, to maintain the original $6,000,000 purchasing power, the lender should be repaid $10,800,000.
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