Answer:
<u>A and B are correct</u>
Explanation :
- The TVM concept is based on the value of money which is today may change with time as a rise or fall in prices thus this explains why the interest rates are paid and calculated on the basis of the present values that may change such as future sum of money of cash flows, can get discontinued at the discounted rates.
- Future values can be ascertained based on the present value of the product/assert. Thus the interest rates and inflation rates change as the risks and the consumer's needs will always be present and have existed earlier.
- It's calculated by the present value and future value of money multiplied by the interest rate and the total number of years. I.e
- FV = PV x [ 1 + (i / n) ] (n x t)
Answer:
The depreciation expense for 2015 is $2,000
Explanation:
The computation of the depreciation expense is shown below:
= (Original cost - residual value) ÷ useful life
= ($35,500 - $4,000) ÷ 7 years
= 4,500
The depreciation for three years would be
= 4,500 × 3 years
= $13,500
The remaining amount would be
= $35,500 - $13,500
= $22,000
So, the depreciation expense for 2015 would be
= ($22,000 - $4,000) ÷ 9 years
= 2,000
<span>A collision coverage type of insurance only the covers the
cost that is incurred due to damage to your car. It does not include the cost
for the other car. Therefore you will have to pay the total of $1,100</span>
Answer:
The answer is A
Explanation:
The loan is an interest only loan since he is only paying the interest potion of 7%
Interest only loan is when the borrower pays only the interest for some or all the term of the loan with no changes in the borrowed amount
