Answer:
I think D. If I'm wrong I'm sorry
$2,095.30 interest will she pay by the time the loan is repaid
Solution:
The $5,500 guaranteed Stafford loan is taken from Gertrude.
The loan has a monthly compounding interest rate of 6.8 percent.
Price current= $5,500.
Present Value = $5,500
Time period = 10 years
So , N = 10 x 12 = 120 months.
Interest rate, R = 6.8/1200 = 0.005666667
PV = Pmt * [1 - (1+R)^(-N)]/(R)
5500 = Pmt * [1 - (1+0.005666667)^(-120)]/(0.005666667)
Pmt = $63.29418157
She got full refund. = 63.29418157 x 120 = $7,595.30
Interest paid = Total repayment - Loan Principal
= $7,595.30 - $5,500
= $2,095.30
Answer:
<u>e) accounts receivable</u>
Explanation:
a) <em>allowance for doubtful accounts:</em> this is used to determinate a provision of uncollectible account. Customers that will not honor their debts.
b)<em>prepaid expenses:</em> This is use for the payment in advance for utilities and other expenses like rent. The description does not involve any payment from Dr Torres.
c)<em>unearned revenues: </em>used when the customer pays the service or goods but the business didn't perform or deliver. The Dr has perform his services so they revenues are earned.
d) <em>intangible assets: </em>refers to trademarks, patents and other assets which related to the business. the customers account are tangible, they are a know value
e) <u>accounts receivable: correct.</u>
This represent the collectible amount from customers, which is exactly what it is happening. The Dr gives a certain amount of time to receive the payment for his services. While the services aren't paid, the Dr has "Accounts to receive"
