Answer:
FV= $240.08
Explanation:
Giving the following information:
Sue now has $125.
Number of periods= 8 years
Interest rate= 8.5% with annual compounding
<u>To calculate the future value of the investment, we need to use the following formula:</u>
FV= PV*(1+i)^n
FV= 125*(1.085)^8
FV= $240.08
Answer:
PV= $1,006,512.21
Explanation:
Giving the following information:
Annual payments= $150,000
Discount rate= 8%
Number of periods= 10 years
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {150,000*[(1.08^10) - 1]} / 0.08
FV= $2,172,984.37
<u>Now, we can determine the present value:</u>
PV= FV/(1+i)^n
PV= 2,172,984.37/(1.08^10)
PV= $1,006,512.21
Answer:
rebate
Explanation:
Rebates are used in marketing as discounts for qualifying customers. Instead of offering a general broad discount to every customer, when companies use rebates they can decide what type of customers will receive them. Even some customers that could qualify for the rebate wouldn't get it, since they need to send a form provided by the company and not everyone will be willing to do it.
Answer: c. gain on disposal of $140000.
Explanation:
The cost of the equipment is $260,000.
When the fire occurred, the book value of the equipment was:
= Cost of equipment - Accumulated depreciation
= 260,000 - 100,000
= $160,000
A check of $300,000 was received from insurance. The gain on disposal is:
= Replacement cost - book value
= 300,000 - 160,000
= $140,000
This amount will be credited to the Gain on Disposal account because an increase is credited.
