<span>Crystal is looking for a new apartment. her monthly rent payment is equal to $1,000, her annual rental insurance premium is $250, and the interest she loses on her security deposit (opportunity cost) is $20 per year. the value of her apartment is $150,000. what are her total annual costs associated with renting?
Rent per year = (1000)(12)
Rent per year = $12,000
Annual insurance premium = $250
Security deposit loss is = $20 annually
Total annual costs are = $12,000 + $250 + $20
Total annual costs are = $12,270</span>
Answer:
$15,189.49
Explanation:
In order to determine the annual payment we have to use the PMT formula i.e to be shown in the attachment below:
Given that,
Present value = $200,000 - $29,000 = $171,000
Future value = $0
Rate of interest = 5%
NPER = 30 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So after applying the formula, the annual payment is $15,189.49
Favorable variance is the variance causes operating income to be greater than the budgeted operating income.
A favorable variance is wherein real income is greater than budget, or real expenditure is less than budget. That is similar to a surplus in which expenditure is much less than the available earnings.
Is Favorable variance usually accurate?
Favorable variances are defined as either generating greater revenue than expected or incurring fewer fees than expected. Damaging variances are the other. Much less revenue is generated or greater prices incurred. Either may be correct or terrible, as these variances are based on a budgeted amount.
How do you inform if a variance is favorable variance or destructive?
If sales have been better than expected, or expenses were decrease, the variance is favorable variance. If sales have been decrease than budgeted or costs were better, the variance is detrimental.
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The correct answer to this open question is the following.
Although the question does not provide any options or particular references, we can say that factors that are driving the internationalization of business are the necessity of countries to establish free trade agreements to compete in the international arena, the developing of cultural factors that penetrate to other countries creating similarities and affinities, the openness of countries that in the past followed protectionist trade rules, and the endless possibilities that new communication technologies are creating to stay connected worldwide.
On the other hand, the major challenges to the development of global systems are cultural restrictions in traditional countries that try to preserve their history, culture, customs, and traditions. And the other big factor could be the political stability of the country that maybe does not have the proper political conditions to be attractive to foreign investment.
Some firms have not planned for the development of internationalization systems because their owners still have the traditional approach of only competing in their former country, not taking the calculated risk of looking abroad for the many opportunities that are out there.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c $18,000
To Service revenue A/c $18,000
(Being the receipt is recorded)
For recording this transaction, we debited the cash account as cash is received and credited the service revenue as service is provided. These both transactions are recorded for $18,000 so that correct posting could be done.