Options :
A)net present value of the $25,000.
B)future value of the $25,000.
C)internal rate of the return on the $25,000.
D)present value of $25,000.
Answer: B)future value of the $25,000.
Explanation: The Smith's calculation and subsequent result which yielded $31,000 refers to the future value of $25,000. The initial $25000 is the present value of the amount held. If the initial amount is saved or deposited over a certain number of years in an account which yields a certain rate of interest per annum and is compounded either on a monthly, yearly, quarterly or semiannual basis as the case may be, in this scenario above, the interest is called mounded annually. This initial amount will grow and yield an amount which is greater than the present deposit. This is called the future value of the initial deposit.
Answer:
$5,983.40
Explanation:
Data provided in the question:
Principle amount = $5,000
Interest rate, r = 6% = 0.06
Time, t = 3 years
Compounded monthly i.e number of periods n = 12
Now,
Final amount = Principle × 
or
Final amount = $5,000 × 
or
Final amount = $5,000 × 1.005³⁶
or
Final amount = $5,000 × 1.196
or
Final amount = $5,983.40
Answer:
e. None of these.
Explanation:
The deductible expenses are expenses that are wholly, necessarily and exclusively for business purpose. This excludes the entertainment cost which is the only avoidable cost in the classes of cost given.
Hence, Sophie's deductible expenses are
= $3,000 + $800 + $600
= $4,400
Answer:
A. an overstatement of net income and an understatement of liabilities.
Explanation:
