Aryanna invests $45,000 today into an investment that earns 7 nnually, but interest is compounded continuously. what is the futu
1 answer:
Aryanna invests $45,000 today into an investment that earns 7 annually, but interest is compounded continuously. what is the future value of this investment 16 years from today will be $132,847.37.
The continuous compounding formula can be found by first looking at the compound interest formula. where n is the number of times compounded, t is time, and r is the rate.
continuously compounded formula
A = P
p = principal = $45000
r = rate = 7% = 0.07
t = time = 16 years
A = 45000×
A = 45000×3.065
A = $137925 ≅ $138000
Aryanna invests $45,000 today into an investment that earns 7 annually, but interest is compounded continuously. what is the future value of this investment 16 years from today will be $132,847.37.
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Answer:
See the errors identified below.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answer is now given as follows:
The following errors can be identified in the accountant's adjusting entries:
1.The accountant debited the account receivable for $5,000 (i.e. $23,250 - $18,250 = $5,000) without crediting laundry revenue.
Therefore, we should have:
Correct amount of laundry revenue = Laundry revenue in trial balance + (Adjusted account receivable - Unadjusted account receivable) = $182,100 + ($23,250 - $18,250) = $187100
2. The accountant debited laundry suppliers expense instead of crediting laundry suppliers for $3,000.
3. The the accountant credited Prepaid insurance for $3,600 (i.e. $5,200 - $1,600 = $3,600). However, the insurance expense was debited for $600.
4. Instead of crediting accumulated depreciation, the laundry equipment for depreciation expense was erroneously credited by the accountant for $13,000.
5. A debit of $1,000 to wages expense was not made by the accountant.
<u>Additional Note:</u>
After correcting the errors identified above, the correct adjusted trial balance will look as the one in the attached photo.
