Answer: a. $73,810.88
b. $10,185.18
Explanation:
a. The payments of $11,000 are constant so this can be considered an Annuity.
The cost of the Computer is it's present value which is,
Present Value of Annuity = Annuity Payment * Present Value Interest Factor of Annuity, 11%, 10 periods
= 11,000 * 6.71008 (Payment is made at the end of the year so this is an Ordinary Annuity)
= $73,810.88
b. When an Annuity is instead paid at the beginning of the period it is considered to be an Annuity due.
The formula is the same but for the figures ,
Present Value of Annuity Due = Annuity * Present Value Interest Factor of an Annuity Due, 11% , 10 periods
73,810.88 = Annuity * 7.24689
Annuity = 73,810.88/7.24689
= $10,185.18
Answer:
(A) pay within the discount period and recognize a savings.
Explanation:
The given credit terms of 2/10, n/30 means
If the payment is paid within 10 days so 2% discount is given and the total credit period given is 30 days
Suppose we take an example
A buys the merchandise of goods from B for $10,000 on April 1. The payment is doe by A on April 7
So, the net payment is
= $10,000 - $10,000 × 2%
= $10,000 - $200
= $9,800
The $200 shows the discount which A avails and termed as a savings
Answer: decreased , lesser .
Explanation:
Tariffs are used to restrict imports by increasing the price of goods and services purchased from another country, making them less attractive to domestic consumers . Governments may impose tariffs to raise revenue or to protect domestic industrie especially from foreign competition.
please elaborate i dont understande what your asking.
Answer:
Amount to be borrowed $18,040
Explanation:
The computation of the amount that should be borrowed is given below:
Opening cash balance $29,500
Add Cash Receipts $98,000
Less Cash Disbursements -$122,540
Balance before adjustment $4,960
Desired ending cash balance $23,000
Amount to be borrowed $18,040
