Xyz company purchased a new machine in march at $ 50000.00 and is using the profit to pay it off.profit in march were $7.876 . if the profit increase 2% from the previous month,in what month will the machine be completely paid off?
Xyz company purchased a new machine in march at $ 50000.00 and is using the profit to pay it off.profit in march were $7.876 . if the profit increase 2% from the previous month,in what month will the machine be completely paid off?
Well, it seems like XYZ company has a new machine on its hands! Let's see when this machine will be completely paid off.
The machine was purchased for $50,000. Now, let's subtract the profit from March, which was $7,876, from the initial cost. That leaves us with $42,124 to be paid off.
If the profit increases by 2% each month, we'll need to calculate how many months it will take to reach or exceed $42,124.
Now, I could do complex calculations or skim through my clown calculations book, but how about this instead: Let's say the profit increases by 2% each month. If we assume that XYZ company makes exactly the same profit every month, then the increase of $7,876 must be 2% of the previous month's profit.
So, let's find the monthly profit before March. If the increase is 2%, we divide $7,876 by 0.02 to find the previous month's profit, which comes out to be $393,800.
Now, let's add a touch of clown logic. If the previous month's profit was $393,800 and the profit increases by 2% each month, then after approximately 107 months (almost 9 years), XYZ company will have made enough profit to pay off the machine.
So, technically speaking, if everything goes clownishly smooth, the machine will be completely paid off in approximately November of the year 2030. Feel free to mark your clown calendar!
To find out in what month the machine will be completely paid off, we need to calculate the total profit needed to pay off the machine and then find when this total profit is reached.
Given:
Machine cost = $50,000.00
Profit in March = $7,876.00
Profit increase per month = 2%
Let's calculate the total profit needed to pay off the machine:
Total Profit = Machine Cost - Profit in March
Total Profit = $50,000.00 - $7,876.00
Total Profit = $42,124.00
Now, let's calculate the monthly increase in profit:
Monthly Increase in Profit = Previous Month's Profit * 2%
Monthly Increase in Profit = $7,876.00 * 2%
Monthly Increase in Profit = $7,876.00 * 0.02
Monthly Increase in Profit = $157.52
To find the number of months required to reach the total profit needed, we can divide the total profit needed by the monthly increase in profit:
Number of Months = Total Profit / Monthly Increase in Profit
Number of Months = $42,124.00 / $157.52
Number of Months ≈ 267.71
Since we cannot have a fraction of a month, we round up the number of months to the nearest whole number:
Number of Months ≈ 268
Therefore, it will take approximately 268 months to completely pay off the machine.
To determine in which month the machine will be completely paid off, we need to calculate the number of months it will take for the accumulated profit to reach or exceed the purchase price of the machine.
Let's start by calculating the monthly profit increase:
Step 1: Calculate a 2% increase from the previous month's profit.
Previous month's profit = $7,876
2% of $7,876 = 0.02 * $7,876 = $157.52
Step 2: Calculate the profit for each month using the monthly increase.
March profit: $7,876
April profit: $7,876 + $157.52 = $8,033.52
May profit: $8,033.52 + $157.52 = $8,191.04
June profit: $8,191.04 + $157.52 = $8,348.56
... and so on
Step 3: Track the accumulated profit until it reaches or exceeds $50,000 (purchase price).
March accumulated profit: $7,876
April accumulated profit: $7,876 + $8,033.52 = $15,909.52
May accumulated profit: $15,909.52 + $8,191.04 = $24,100.56
June accumulated profit: $24,100.56 + $8,348.56 = $32,449.12
... and so on
We can continue this process until the accumulated profit surpasses $50,000. Let's do a few more months:
July accumulated profit: $32,449.12 + $8,506.09 = $40,955.21
August accumulated profit: $40,955.21 + $8,666.67 = $49,621.88
Based on these calculations, it will take until August for the accumulated profit to exceed the purchase price of $50,000. Therefore, the machine will be completely paid off in August.