Answer:
The correct answer is $71,908.99.
Explanation:
According to the scenario, the given data are as follows:
PV =$22,000
For Time period (t1) = 13 years
Rate of interest (r1) = 4.5%
For time period (t2) = 16 years
Rate of interest (r2) = 3.9%
So, we can calculate the future value by using following formula:
FV = PV × (1+r1)^t1 × ( 1 + r2)^t2
So, by putting in the formula, we have
FV = ($22,000 × (1+4.5%)^13) × (1+3.9%)^16
= $71,908.99
Answer:
The answer is $1811.20
Explanation:
PV = C( 1+i)^-n
PV = 4000(1.045)^-18 = $1811.20
Savings are for saving not spending
Answer:
C. Yes. If repair rates are higher for planes that have been resold, this would be an indication of a lemons problem
Explanation:
Lemons problem is an issue of quality of product, asset, investment : due to asymetric information about the respective quality.
Asymetric Information is when one one party in transaction has more knowledge about the quality of product or asset, than the other party.
Second hand goods are an illustration of this case, as seller has more information about the real quality of good or asset than buyer.
Lemon's problem in single engines airplanes : can be analysed by concept of second hand goods 'asymetric information, lemons problem' it. If the 2nd hand resold planes require higher repairs, it indicates that the buyer had asymetric information about bad quality of planes ( the information which seller had), but realisation of bad quality later implies higher repairs.
Answer:
Net income = $688
Explanation:
If Nu elects FIFO, we have:
Cost of good sold = Cost of goods available for sale - Ending inventories = 2,490 - 1,260 = $1,230
Gross profit = Net sales - Cost of good sold = 2,870 - 1,230 = $1,640
Net operating income = Gross profit - Operating expenses = 1,640 - 780 = $860
Tax = $860 × 20% = $172
Net income = $860 - $172 = $688
