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jeka57 [31]
3 years ago
5

A small business has determined that the machinery they currently use will wear out in 16 years. To replace the new machine when

it wears out, the company wants to establish a savings account today. If the interest rate on the account is 1.9 percent per quarter and the cost of the machinery will be $325,000, how much will the company have to deposit today
Business
1 answer:
Vlad [161]3 years ago
8 0

Answer:

The initial deposit should be of: $97,439.62

Explanation:

Giving the following information:

To replace the new machine when it wears out, the company wants to establish a savings account today. The interest rate on the account is 1.9 percent per quarter and the cost of the machinery is $325,000.

To calculate the initial investment required, we need to use a variation on the simple interest future value formula:

FV= PV*(1+i)^n

PV= present value

Isolating PV:

PV= FV/(1+i)^n

i= 0.019

n= 4*16= 64

FV= 325,000

PV= 325,000/ (1.019^64)= $97,439.62

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<u>Answer: </u>

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<u>Explanation: </u>

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2 years ago
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<u>Given:</u>

Total assets before journalizing and posting the adjusting = $128,800

Expired insurance = $800

Expired rent = $2,400

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<u>To find:</u>

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<u>Solution:</u>

To determine the value of the total assets after journalizing and posting the adjustment, we have to subtract all the given values i.e, the expired rent, expired insurance and the depreciation values from the total assets before journalizing and posting the adjusting.

The calculation is as follows,

Total assets after journalizing and posting the adjusting

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Answer:

c) Counteroffer

Explanation:

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Here according to the given scenario, Jack makes the offer in the condition that he needs only microwave, refrigerator, and window treatment and this will be a sale part. Now, Padilla who is selling the home is accepting the terms of Jack with the condition that the refrigerator will remain in the home. So, this case is called the counter offer.

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Answer:

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