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Orlov [11]
3 years ago
6

You want to purchase a new car in 88 years and expect the car to cost ​$58 comma 00058,000. Your bank offers a plan with a guara

nteed APR of 5.5 %5.5% if you make regular monthly deposits. How much should you deposit each month to end up with ​$58 comma 00058,000 in 88 ​years?
Business
2 answers:
Fudgin [204]3 years ago
6 0

Answer:

The monthly deposit required is $2,411.

Explanation:

We can use a financial calculator to solve the following.

The period is for 88 years thus we will make N = 88.

The interest rate is 5,5% thus we will make I/Y = 5,5$

The future value needs to be $58000. Thus FV = 58000

The present value is currently 0.

We need to calculate the monthly payments. Thus we will solve for payments (PMT).

The annual investment will be 28,939 / 12 = $2,411 per month over 88 years.

Alternatively we can use the annuity formula which is PMT = FV x i / (1+i)^{88} - 1

Using this formula we also end up with an answer of 28,939. We then divide this by 12 to get the monthly amount of  $2,411.

Kruka [31]3 years ago
3 0

Answer:

The answer is $483.33

Explanation:

To solve this problem, we will use the following formula:

A = d((1+r/n)^nt-1)/(r/n)

Where:

r = rate (0.055)

n = number of compoundings per year (12)

nt = total number of compoundings (96)

A= d ((1+.055/12)^96-1)/(.055/12)

58,000=d(1.55)-1)/(.055/12)  

58,000 = 120d

d=$483.33

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Answer:

Fraud Investigators Inc.

1. Journal Entries:

March 31:  Debit Accounts Receivable $21,000

Credit Service Revenue $21,000

To record the rendering of service on account.

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Credit Accounts Receivable $1,300

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Dec. 15: Debit Cash $760

Credit Accounts Receivable $760

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Dec. 31: Debit Bad Debts Expense $460

Credit Allowance for Uncollectible Accounts $460

To record bad debts expense for the year.

A) Debit Accounts Receivable $34,000

Credit Service Revenue $34,000

To record the rendering of service on account.

B) Debit Allowance for Uncollectible Accounts $1,950

Credit Accounts Receivable $1,950

To write off uncollectible accounts.

C1) Debit Accounts Receivable $810

Credit Allowance for Uncollectible Accounts $810

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C2) Debit Cash $810

Credit Accounts Receivable $810

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To record bad debts expense for the year.

2. Transaction  Net Receivable  Net Sales   Income From Operation

        A                  +34,000           +34,000           +34,000

        B                  -1,950                 NE                   -1950

        C                  +/- 810                NE                    +810

        D                   NE                     NE                    -590

Explanation:

a) Data and Analysis:

March 31:  Accounts Receivable $21,000 Service Revenue $21,000

Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300

Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760

Dec. 15: Cash $760 Accounts Receivable $760

Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460

A) Accounts Receivable $34,000 Service Revenue $34,000

B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950

C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810

C2) Cash $810 Accounts Receivable $810

D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590

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