Card Sharks, Inc. Card Sharks, Inc.sells Baseball Cards and Other Memorabilia.The Company Tries

question 39

Multiple Choice

Card Sharks, Inc.
Card Sharks, Inc.sells baseball cards and other memorabilia.The company tries to maintain a cash balance equivalent to approximately 30 days of sales.Sales in 2011 amounted to $352,412 and the company expects growth in 2012 of 30% and in 2013 of 35%.
-Given the information provided about Card Sharks,what is the company's 2012 projected year-end cash balance?

• A) $966
• B) $50,820
• C) $15,623
• D) $38,524

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Definitions:

Compounded Semiannually

A method of calculating interest where the accrued interest is added to the principal sum and interest is then calculated on the new total twice a year.

Monthly Compounded

Interest calculation in which the interest is added to the principal balance monthly, allowing earnings to increase at a faster rate compared to annual compounding.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous months, on a monthly basis.

Semiannually Compounded

A method of compounding interest where the calculation and addition of interest occur twice a year.