A sales associate listed a condo for $205,000. A sales associate from a competing office called the listing associate to inform

Answer:

Prof. Finance can withdraw an annual annuity of $ 110,698

Explanation:

Prof. Finance's present value is $1,500,000, which reflects his savings at retirement age 65, so PV= 1,500,000

6% is the interest rate established, so r=6%

Number of withdrawals planned = 25

PMT= $110,698

Answer:

C. Cost-volume-profit analysis

Explanation:

Cost-volume-profit analysis (CVP analysis) plays a crucial role in cost management, focusing on the relationship between an organization's financial performance, production volume, and sales of products or services. This analytical approach is also applicable for setting prices.

The assumptions underlying CVP analysis include:

1) Production levels match sales levels, being the sole factor influencing cost and revenue changes for the business. Inventory levels of finished goods remain unchanged.

2) Other factors (like product selling prices, prices of materials and services utilized in production, variable costs per output unit, and labor efficiency) are constant within an acceptable production volume range.

3) The focus of the analysis is limited to a single product or a stable range of products. The sales mix in a multi-product company is steady.

4) Both total costs and revenue exhibit linear characteristics relative to production levels.

The analysis is performed within a reasonable production volume range.

5) All expenses are categorized as either fixed or variable costs.

6) The evaluation is intended for the short term.

7) Fixed costs remain unchanged as production volume varies within an acceptable range, with no structural adjustments occurring.

In summary, we can highlight that this method is the Cost Volume Profit analysis, which evaluates how changes in volume impact profits by examining the varying degrees of costs.

Response:

The interest rate is 5.7%          $21.204

Clarification:

I = Interest, T = time;;R is rate; P = principal

John earned this interest by July 1, 1993 as follows:

           I = = 72

Consequently, the total amount in John's account by July 1, 1993 would then be

= $300 + $72= $372

This indicates he utilized these funds at an interest rate of q.

On July 1, 1998, John’s total was $520, meaning the interest accumulated in these five years equals $520 - $372 = $148.

Using the simple interest formula: Interest = PRT/100

148 =

       = 14,800 =2600q

Thus, the rate is found to be 5.7%

The interest amount between July 1, 1993, and July 1, 1994 calculates as

    I =

          = $21.204

Natalie intends to achieve a 25% profit on a sale of $70,000. To calculate, she does the following:

(125 ÷ 100) × 70000 = $87500.

Natalie aims for $87500, however, the agent will take a 6% commission on the sale price, so she must include this amount, calculated as:

(106 ÷ 100) * 87500 = $92750.

For the total of $92750, there is an additional closing cost of $1200,

This gives us $92750 + $1200 = $93950.

When rounding $93950 to the nearest hundred, we arrive at $94000.

Therefore, to secure a 25% profit, Natalie should set the final sale price at $94000.