Connect Problem 01-13 (algo)Next Friday, you plan to sell cakes at a bake sale to raise money for your school. You plan to charge $30 per cake, and you anticipatethat you will sell 10 cakes. You can either purchase cakes to sell or bake them yourself. If you purchase the cakes, they will cost $23each. If you bake your own cakes, your cost depends upon the number of cakes you bake, as shown in the table below.Number of cakesyou bakeBake$012345678910a. How many cakes should you bake? How many cakes should you purchase?Instructions: Enter your answer as a whole number.cake(s) and purchasecake(s).b. Given your answer to part a, how much in total will the 10 cakes cost you?Instructions: Enter your answer as a whole number.Total cost ofbaked cakes ($)0102236527090112136162190c. How much would it have cost you to bake all 10 cakes?

make or buy decision refers to the concept which is used for deciding the option of either buying or…

Answered: Next Friday, you plan to sell cakes at…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

You plan to spend $400 to buy a new IPAD at the beginning of year3 and $1,000 to buy a new phone at the End of year 6. By using excel, please calculate how much you need to save in each year? Suppose you deposit in the beginning of each year. Suppose your last deposit is at the beginning of year 6. Interest rate is 8%. Answers should be rounded to the 2nd decimal place.
You decide to open a Lil Miss B's Bakery. You will only make whole wheat bread and sell it as a whole loaf. You were able to purchase the store and pay a monthly mortgage note payment of $1600 (this includes your taxes, insurance and loan payment). You placed your bills on levelized billing so you pay monthly $500 for electricity and $300 for water. Your secret whole wheat bread recipe makes one load of bread. The recipe calls for 3 cups of whole wheat flour (cost is 78 cents), 2 tablespoons of yeast (cost is 34 cents), 3 eggs (cost is 20 cents), one cup of milk (cost is 98 cents) and 2 tablespoons of honey (cost is $1.15). How many loaves of whole wheat bread does Lil Miss B's Bakery need to sell each month to breakeven if we charge $4.50 per loaf? choose the options.. Between 2,283 and 2,284 loaves.Between 2,285 and 2,286 loaves.Between 2,287 and 2,288 loaves.Between 2,289 and 2,290 loaves.
You decide to save money to buy a car by opening a special account at a bank that offers 8% APR compunded monthly. You deposit $300 each month for 36 months. How much will you have in your account in 36 months?
Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Round your answers for the following questions to the nearest dollar. If Megan's tuition, fees, and expenditures for books this year total $19,000, what will they be during her senior year (three years from now), assuming costs rise 3 percent annually? (Hint: Use Appendix A-1 or the Garman/Forgue companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places. $ Megan is applying for a scholarship currently valued at $1,000 at the end of first year. If she is awarded it at the end of next year, how much is the scholarship worth in today's dollars, assuming inflation of 2 percent? (Hint: Use Appendix A-2 or the Garman/Forgue companion website.) Round Present Value of a Single Amount in intermediate calculations to four decimal places. $ Megan is already looking ahead to graduation…
Linda is 10 years old. Her parents want to save for 4 years of college, starting at 18. Her parents want to deposit X today and on birthdays 11,12, …. 17. On birthdays 18, 19, 20, 21 they plan to take out $20,000 – the total cost of education. How much do her parents need to save each year? Assume the discount rate is 10%. Solve the following ways:Using trial and error, is the $4,000/per year enough? Using Goal Seek, solve for the annual deposit necessary to meet their financial goals.
You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you insist on paying them interest. The agreement is that they will lend you $8000.00 at a simple interest rate of 2% per year. Once the interest amounts to $480, you agree to pay them back the $8000 plus the $480 interest. After how many months will you have to pay them back? Please answer step by step
Gabe and Sarah would like to begin saving for their children's college education. They would like to know the amount of college funds that would be necessary on day one of college to pay for all tuition costs for each child. The current tuition at the university is $25,000. The couple is comfortable assuming an annual rate of return of 6% on their college investment savings program. They anticipate that each child will begin college at age 18 and attend for four years. The Consumer Price Index (CPI) is expected to be 3% and the expected college inflation rate is 5% per year.
On January 1, you plan to take a trip around the world upon graduation four years from now. Your grandmother wants to deposit sufficient funds for this trip in an investment account for you. On the basis of a budget, you estimate that the trip currently would cost $15,000. Being the generous and sweet lady she is, your grandmother decided to deposit $3,500 in the fund at the end of each of the next four years, starting on December 31, 2021. The account will earn 6 percent annual Interest, which will be added to the account at each year-end. (Future Value of $1. Present Value of $1. Future Value Annulty of $1. Present Value Annulty of $1, Financial Calculator) (Use tables, Excel, or a financial calculator.) Required: 1. How much money will you have for the trip at the end of year 4 (1.e., after four deposits)? 2. What is the total amount of Interest earned over the four years? 3. How much Interest revenue did the fund earn in each of the four years, starting in 2021? Complete this…
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?
You plan to buy the new iPhone when it is released 6 months from now. You believe it will sell for $999 dollars. You know that you will need to cut back on other expenditures to ensure you have the money ready upon release and decide to start skipping some of your daily Starbucks purchases to afford the new phone. Your usual Starbucks order costs $5. The money you save will earn an interest rate of .5% a month. How many Starbucks coffees each month do you need to sacrifice in order to have saved the $999 for your new phone?
In order to start a small business, a student takes out a simple interest loan for $3000 for 9 months at a rate of 11.25%. a. How much interest must the student pay? b. Find the future value of the loan.
The parents of a 3-year old child decide they need to start saving for their child's college fund. They want to have $22,000 in the fund in 15 years. The fund has an APR of 3.4%. What monthly deposit is required? Round your answer to the nearest cent.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS