Answer:
I can borrow $24,000
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
The amount of loan can be calculated as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Amount of Loan = $632 x [ ( 1- ( 1 + 1% )^-48 ) / 1% ]
Amount of Loan = $632 x [ ( 1- ( 1.01 )^-48 ) / 0.01 ]
Amount of Loan = $24,000
r = 7.17%
Interest rate is 7.17%
Answer:
b. $360,000.
Explanation:
Data provided in the question
Purchase value of the patent = $720,000
At the time of purchase, the patent life is 15 years
And, the useful life of the patent is 10 years
So, the amortization expense recorded value is
= $720,000 ÷ 10 years × 5 years
= $360,000
The five years is counted from the year 2006 to the year 2011
Less than the bond interest payment
Answer:
$337.50
Explanation:
Given that
Three year insurance policy = $1,350
So, the insurance expense on an annual basis would be
= Three year insurance policy ÷ number of years
= $1,350 ÷ 3 years
= $450
For April 1 to December 31, the months is 9 months
So, for 9 months, it would be
= $450 × 9 months ÷ 12 months
= $337.50
We assume the premium is paid on April 1