Suppose the merchant will take advantage of the cash discount of 4% of $20 000 = $800 by paying the bill within 30 days from the date of invoice. He needs to borrow $20 000 = $800 = $19 200. He would borrow this money on day 30 and repay it on day 100 (the day the original invoice is due) resulting in a 70-day loan. The interest he should be willing to pay on borrowed money should not exceed the cash discount $800.
r=I/pt=21.73%
The highest simple interest rate at which the merchant can afford to borrow money is 21.73%. This is a break-even rate. If he can borrow money, say at a rate of 15%, he should do so. He would borrow $19 200 for 70 days at 15%. Maturity value of the loan is $19 200(1+0.15(70/365))=$19 752.33
savings would be $20 000 ? $19 752.33 = $247.67
We have the important relation, More work, More time (days)
? A piece of work can be done in 6 days.
? Three times of work of same type can be done in 6 x 3
= 18 days
? = 750.0003 ÷ 19.999
? ? ? 750 ÷ 20
? ? ? 375 ? 38
Subtract 20, 25, 30, 35, 40, 45 from successive numbers. So 0 is wrong.
NA
Each previous number is multiplied by 2.
? 8 m shadow means original height = 12 m
? 1 m shadow means original height = 12/8 m
? 100 m shadow means original height = (12/8) x 100 m
= (6/4) x 100 = 6 x 25 = 150 m
Let 8% of 96 = y of 1/25
? (8 x 96)/100 = y/25
? y = (8 x 96 x 25)/100 = 192
Since the principal is not given, so data is inadequate.
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