Tutors Answer Your Questions about Finance (FREE)
Question 559038: The park had initially planned to charge $8 for admission and expected to have 2400 visitors a day. Allison and Hannah were assigned the task of analyzing the parks admission revenues.
a) How much revenue would the park have for one day at the current price?
b) Market research shows for every $0.50 the admission price is raised, the park will have 80 fewer visitors. How much would you expect the park revenue to be if the park raised their admission price by $1?
After a few calculations, Allison and Hannah realize the park will make more money if they raise the price of admission. However, they also understand that there must be a limit to how much the park can charge.
As a result, they model the situation with the equation, R = (2400 - 80x)(8 + 0.5x), where R represents the revenue from sales and x represents the number of price increases.
Use this Factored form Quadratic equation to solve for the zeroes, and then use the zeroes to calculate the number of price increases that will generate the maximum Revenue.
Now demonstrate a second strategy for solving such a problem. This process will ultimately double check your results from above...
a) Express this same Quadratic R = (2400 - 80x)(8 + 0.5x), in Standard form: R = ax2 + bx + c.
b) Complete the Square to again determine the number of price increases that will generate the maximum Revenue.
c) What is the Maximum Revenue that can be generated? (from just looking at your results!)
I would be
GRateful for any help you give me
Click here to see answer by stanbon(75887)  |
Question 559161: What is the model for unkowns for this problem: Mrs. B invested $30,000: part at 5%, and part at 8%. The total interest on the investment was $2100. How much did she invest at each rate?
I started here: $30,000-x=7
x=.05
y=.08
Stuck now...
Click here to see answer by scott8148(6628)  |
Question 560716: Please help solve this problem. A couple plans to save for their childs' college education. What principal must be deposited when their child is born in order to have $100,000 when the child turns 18? Assume the money earns 4% interst compounded quarterly.
Click here to see answer by stanbon(75887) |
Question 563742: a person borrows $10000 and agrees to repay the loan in equal instalments over 20 years. interest is 12% per annum on any money owing
A) what is the amount of each repayment, if the repayment are made
i) annually, ii) quarterly, iii) monthly, iv) weekly
B) which is the cheapest of the four methods of repayment in (A)
Click here to see answer by Theo(13342)  |
Question 565566: This really confuses me since it showed be put in the formula I=prt. If this was explained that would help! Thanks.
Madison invested $50,000 for two years. A part of this investment had 10% annual interest and the rest was invested at 15% annual interest. The interest from the investment at 10% was $350 more than the interest from the investment at 15%. How much did she invest at 10%? How much did she invest at 15%?
Click here to see answer by lwsshak3(11628) |
Question 567012: William opened two investment accounts for his grandson’s college fund. The first year, these investments, which totaled $18,000, yielded $831 in simple interest. Part of the money was invested at 5.5% and the rest at 4%. How much was invested at each rate?
Click here to see answer by mananth(16946)  |
Question 564055: You have $10,000 which you will invest for the next four years. You are considering the following investment alternatives:
(I) Purchase units in a bond mutual fund which pays $210 interest quarterly. Assume that the
interest is reinvested at the coupon rate.
(II) Purchase a 4-year guaranteed investment certificate which pays 3 percent compounded
monthly.
(III)Invest in a stock which promises the following cash flows:
Year 1 $ 0
Year 2 500
Year 3 750
Year 4 2,000
(a)Assume that at the end of year 4, you will get back your $10,000. Which investment alternative do you prefer? Why?
(b)What factors, other than the rate of return, should you consider in making your investment decision?
Click here to see answer by cp24(1) |
Question 567610: Assume your planning to invest $5000 each year for 6 years earning 10% per year. What is the future value in the first $5000 invested?
Please help solve future value in the first $5000 invested.
Here is what I've thus far:
Future Value = present value X [(1 + interest rate) x (number of years)]
FV= $5000 x (1 + .010 x 6)
FV = $5000 x 1.010 x 6)
FV = $5000 x 6.06
FV = $30,300
30,300 - 30,000 = 300.00 / 6 = $50.00
First year $5000 investment is worth 5,050.00
Click here to see answer by bucky(2189) |
Question 424976: 1. Mike’s Sport Shop deposits $3,600 at the end of each year for 12 years at 7% annual interest.
a. How much will this ordinary annuity be worth at the end of the 12 years? (5 points)
Answer:
b. How much more will this annuity be worth (annuity due) if Mike deposits the money at the beginning of each year instead of at the end of each year? (5 points)
Answer:
2. Barb and John Reed want to know how much they must deposit in a retirement savings account today to have payments of $1,750 every six months for 15 years. The retirement account is paying 8% annual interest, compounded semiannually. (5 points)
Answer:
3. Lena Dimock is saving for her college expenses. She sets aside $200 at the beginning of each three months in an account paying 8% annual interest, compounded quarterly. How much will Lena have accumulated in the account at the end of four years? (5 points)
Answer:
Part II. Case Study
Julie has just completed the rigorous process of becoming a Certified Financial Planner (CFP). She is looking forward to working with individuals on saving for retirement. She would like to show her clients the value of an annuity program as one of the best options for investing current earnings in a tax-deferred account.
1. If a client puts the equivalent of $55 per month, or $660 per year, into an ordinary annuity, how much money would accumulate in 20 years at 3% compounded annually? (5 points)
Answer:
2. Jackie, a 25 year old client, want to retire by age 65 with $2,000,000. How much would she have to invest annually, assuming a 6% rate of return? (5 points)
Answer:
3. Another client, Wynona, decides that she will invest $5,000 per year in a 6% annuity for the first ten years, then $6,000 for the next ten years, and then $4,000 per year for the last ten years, how much will she accumulate? [Hint: Treat each ten-year period as as separate annuity and compute the Future Value. After the ten years, assume that the value will continue to grow at compound interest for the remaining years of the 30 years. Use tables from Unit 6 to compute compound interest.
Click here to see answer by Hyot(1) |
Question 570702: Could someone please help me with this problem. There was an example in the book, but I didn't understand it. "An educational loan of $8400 for 10 years is to be repaid in monthly installments of $122.50. What is the annual rate of this loan, computed as simple interest?"
Click here to see answer by josmiceli(19441)  |
Question 570702: Could someone please help me with this problem. There was an example in the book, but I didn't understand it. "An educational loan of $8400 for 10 years is to be repaid in monthly installments of $122.50. What is the annual rate of this loan, computed as simple interest?"
Click here to see answer by scott8148(6628) |
Question 572069: Hello all!
CelebNav, Inc. had sales last year of $600,000 and the analysts are predicting a good year for the start up, with sales growing 18 percent a year for the next 3 years. After that, the sales should grow 9 percent per year for another two years, at which time the owners are planning on selling the company. What are the projected sales for the last year of the company’s operation?
Thank you!!
Click here to see answer by septimus99(4) |
Question 584755: George and Lisa would like to build a double garage in their backyard. They estimate it will cost $15,000 and they would like to pay for it without using financing. If they are willing to wait for 4 years, how much do they need to invest now in order to have $15,000 if they can receive simple interest of 5% per year?
Click here to see answer by stanbon(75887) |
Question 585409: PLZ HLEP!! i did it but not sure if i did it right
Cynthia decides to buy some furniture for her new house. She doesn’t have the money so she borrows $6,000 from her father. She agrees to pay her father back after 60 months with 4.5% simple interest. How much will she pay back to her father in total?
my answer is $7350
Click here to see answer by jim_thompson5910(35256) |
Question 585415: PLZZ help!!!!!!!!!!!!!!!!!!!!
A young couple that recently had their third child decide they need to purchase a new van. They make a down payment of $10,000 and finance the remaining $22,000 to purchase a 2010 Toyota Sienna. They arrange financing with their local financial institution and arrange an annual interest rate of 5.2% compounded monthly. They decide to make monthly payments of $400. What will be the outstanding balance on their loan after 24 months?
Click here to see answer by jim_thompson5910(35256) |
Question 585221: Do you know what formula to use in solving this problem? Also could I get an example of the formula being applied to the question? Here is the question. You deposit $40 at the end of every six months into an annuity with 5% interest compounded semiannually. How much interest will have accumulated after 25 years? Do not round until the final answer. Then round to the nearest dollar as needed.
Click here to see answer by ankor@dixie-net.com(22740)  |
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