A short-term liability is a payment that is due in 12 months or less. Hence notes payable due in six months is reported as a short-term liability.
<h3>
What is a liability?</h3>
In the parlance of Accounting and Finance, a Liability is a financial obligation that the company owes to individuals, or organizations with which it has transactional or legal relationship.
Hence, it is correct to indicate that notes payable due in six months is reported as a short-term liability.
Learn more about liability at;
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Answer:
Amount at the end of twentieth year is $12,300
Explanation:
Annuity means a set of fixed amount of payments either made to you or paid by you , at a fixed number of times over a course of defined period.
The case given in the question is of ordinary annuity , where fixed amount of payment are required at the end of each period.
FORMULA FOR FUTURE VALUE ORDINARY ANNUITY =
Where, C(cash flow) = $300,
I(interest rate) = 7%
N(number of period) = 20
FV ( Future value)
![FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= CASH\ FLOW(C)\times \left [ \frac{1+I^{N}-1}{I} \right ])](https://tex.z-dn.net/?f=FUTURE%5C%20VALUE%28FV%29%5C%20OF%5C%20ORDINARY%5C%20ANNUITY%3D%20CASH%5C%20FLOW%28C%29%5Ctimes%20%5Cleft%20%5B%20%5Cfrac%7B1%2BI%5E%7BN%7D-1%7D%7BI%7D%20%5Cright%20%5D%29)
![FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{1+7\%^{20}-1}{7\%} \right ])](https://tex.z-dn.net/?f=FUTURE%5C%20VALUE%28FV%29%5C%20OF%5C%20ORDINARY%5C%20ANNUITY%3D%20%5C%24300%5Ctimes%20%5Cleft%20%5B%20%5Cfrac%7B1%2B7%5C%25%5E%7B20%7D-1%7D%7B7%5C%25%7D%20%5Cright%20%5D%29)
![FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{\ 1.07\ ^{20}-1}{7\%} \right ])](https://tex.z-dn.net/?f=FUTURE%5C%20VALUE%28FV%29%5C%20OF%5C%20ORDINARY%5C%20ANNUITY%3D%20%5C%24300%5Ctimes%20%5Cleft%20%5B%20%5Cfrac%7B%5C%201.07%5C%20%5E%7B20%7D-1%7D%7B7%5C%25%7D%20%5Cright%20%5D%29)
![FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{\ 3.87\ -1}{7\%} \right ])](https://tex.z-dn.net/?f=FUTURE%5C%20VALUE%28FV%29%5C%20OF%5C%20ORDINARY%5C%20ANNUITY%3D%20%5C%24300%5Ctimes%20%5Cleft%20%5B%20%5Cfrac%7B%5C%203.87%5C%20-1%7D%7B7%5C%25%7D%20%5Cright%20%5D%29)
![FUTURE\ VALUE(FV)\ OF\ ORDINARY\ ANNUITY= \$300\times \left [ \frac{\ 2.87}{7\%} \right ])](https://tex.z-dn.net/?f=FUTURE%5C%20VALUE%28FV%29%5C%20OF%5C%20ORDINARY%5C%20ANNUITY%3D%20%5C%24300%5Ctimes%20%5Cleft%20%5B%20%5Cfrac%7B%5C%202.87%7D%7B7%5C%25%7D%20%5Cright%20%5D%29)
= 861/7%
= $12,300