At the time Mark bought the painting, he could have placed the money he paid for it (including the handling fee) in a 12 month term deposit that offered an interest rate of 2.7% compounded monthly. (c) Determine whether the term deposit would have been a better investment for Mark.
At the time Mark bought the painting, he could have placed the money he paid for it (including the handling fee) in a 12 month term deposit that offered an interest rate of 2.7% compounded monthly. (c) Determine whether the term deposit would have been a better investment for Mark.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please do question 10. a and b
and question 19 c
Transcribed Image Text:Question 10
A single person living away from home and looking for a job qualifies for a government allowance
of $485.50 per fortnight, provided their fortnightly income is no more than $150.
In any fortnight that such a person earns more than $150, the allowance will reduce by 50 cents
for each dollar of income they have between $150 and $250. If their income is over $250, the
payment will further reduce by 60 cents for each dollar of income over $250.
Ann qualifies for the allowance. Each week she works two, 3-hour shifts and one, 5-hour shift at
a hotel that pays $21.50 per hour.
(a)
Calculate her fortnightly earnings.
(b)
Determine her fortnightly government allowance.
Transcribed Image Text:Question 19
Mark bought a painting as an investment at an auction for $15 500. The auction house charged
Mark a handling fee of 0.75% of the sale price.
(a) Determine the handling fee paid by Mark.
One year later, Mark sold the painting through a gallery for $20 900. The gallery charged Mark a
commission of 24% of the sale price.
(b) Determine the net profit made by Mark, after he had paid the handling fee and sales
commission.
At the time Mark bought the painting, he could have placed the money he paid for it (including the
handling fee) in a 12 month term deposit that offered an interest rate of 2.7% compounded
monthly.
(c) Determine whether the term deposit would have been a better investment for Mark.
Expert Solution
Step 1
Question 10 pertains to calculation of allowance in situation of varying earnings. The allowance is based on fortnightly earnings with some conditions. An allowance of $ 485.50, if the fortnightly income is not more than $ 150. If the person earns more than $ 150, the allowance will be reduced by 50 cents for each dollar earned between 150 to 250. For income above $ 250, 60 cents are reduced for each dollar earned.
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