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Morgarella [4.7K]
3 years ago
6

Linda Baer has already saved ​$3 comma 978 to buy a used vehicle. Ignoring taxes and assuming her money is invested in a money m

arket account earning 6 percent compounded​ annually, how long will it take to buy a car that costs ​$7 comma 124​?
Business
1 answer:
Mkey [24]3 years ago
7 0

Answer:

Given the currents conditions, it will take 10 years to reach the amount required.

Explanation:

Giving the following information:

Linda Baer has already saved ​$3,978 to buy a used vehicle.

The account earns 6 percent compounded​ annually.

Final value= ​$7,124

To calculate the amount of time required we need to use the following formula:

n=[ln(FV/PV)]/ln(1+r)

n= [ln(7,124/3,978)]/ln(1+0.06)

n= 0.253/0.0253

n= 10

Given the currents conditions, it will take 10 years to reach the amount required.

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According to the erosion model of organizational commitment, the employee with the fewest emotional bonds is the most likely to
Likurg_2 [28]

The statement, according to the erosion model of an organizational commitment, the employee with the fewest emotional bonds is the most likely to quit, is true.

The erosion model explains that an organization's employee who have less or fewer emotional bonds tend to quit the organization because they do not feel or get involved in the organization, or they don't feel any attachment to it.

Here the social influence model states that suppose when two employees are closely related or have good terms, so if one of them quits their work, then the other one is more likely to follow them and leave the organization.

Hence, the erosion model suggests that employees with fewer bonds will be most likely to quit the organization.

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4 0
1 year ago
Transactions Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equip
Ann [662]

Answer:

Oct. 1 2019

Rent Expense$4,200 (debit)

Cash $4,200 (credit)

Oct. 3 2019

Advertising Expense $2,670 (debit)

Cash $2,670 (credit)

Oct. 5 2019

Supplies $1,150 (debit)

Cash $1,150 (credit)

Oct. 6 2019

Office Equipment $17,600 (debit)

Accounts Payable $17,600 (credit)

Oct. 10 2019

Cash $5,730 (debit)

Accounts Receivable $5,730 (credit)

Oct. 15 2019

Accounts Payable $1,680 (debit)

Cash $1,680 (credit)

Oct. 27 2019

Miscellaneous Expense $730 (debit)

Cash $730 (credit)

Oct. 30

Utilities Expense $270 (debit)

Cash $270 (debit)

Oct. 31: Fees earned

Trade Receivable $38,200 (debit)

Fees Earned $38,200 (credit)

Oct. 31: Paid bill

Utilities Expense $460 (debit)

Cash $460 (debit)

Oct. 31: Withdrawal

Jason Payne, Capital $2,900 (debit)

Cash $2,900 (credit)

Explanation:

Note

Cash Drawings reduce the owners interest in their capital accounts and at the same time they reduce the assets of cash.

5 0
2 years ago
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from
Tema [17]

Answer and Explanation:

The computation of the net present value is presented in the attachment below:

For project A, the net present value is $91,771.53 and for project B, the net present value is $79,390.69

It is computed after considering the discounting factor that comes from

= 1 ÷ (1 + discount rate)^number of years

for year 1, it is

= 1 ÷ (1 + 0.06)^1

The same applied for the remaining years

6 0
3 years ago
Tom takes a loan of $60,000 at 4% annual interest to purchase a property worth $100,000. He earns an annual income of $10,000 af
guajiro [1.7K]

Based on the given data, Tom's leveraged return on the real estate investment is 13.3%.

A leveraged return means an investment return on equity partially financed with debt.

Investment in property = $100,000 - $60,000

Investment in property = $40,000

Interest = $60,000 * 4%

Interest = $2,400

Net income after tax = ($10,000 - $2,400) * (1 - 30%)

Net income after tax = $7,600 * 0.70

Net income after tax = $5,320

Leveraged return = Net income after tax / Investment in property * 100

Leveraged return = $5,320 / $40,000 * 100

Leveraged return = 0.133 * 100

Leveraged return = 13.3%

Hence, Tom's leveraged return on the real estate investment is 13.3%.

Learn more about leveraged return:

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8 0
2 years ago
At January 1, 2017, Benny Enterprises reported a balance in the Equipment account of $45,000. During the year the company purcha
zhannawk [14.2K]

Answer:

$4,000

Explanation:

The operating activities records daily activities of a business entity transactions such as depreciation expense, loss or profit on sale of long term assets, change in working capital etc.

With regards to the above scenario, there is a loss of $4,000 on the sale of equipment whilst same was recorded under the operating activity section as positive.

It is to be noted that the sale and equipment of an equipment falls under investing activity section hence shod be recorded therein as such, reason it was not considered here.

6 0
3 years ago
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