The
amount of money that Eric will have after 5 years given the initial amount and
the interest per year (which we will assume to be compounded)
<span> F = P x (1 + r)^n</span>
Substituting,
<span> F =
($7,500)(1 + 0.0525)^5</span>
<span> F = $9,686</span>
<span>Therefore,
Eric will be short of about $113.39. </span>
Answer:
$3,000 and $35,000
Explanation:
The computations are shown below:
The depreciation expense would be
=(Original cost - residual value) ÷ (useful life)
= ($50,000 - $5,000) ÷ (15 years)
= ($45,000) ÷ (15 years)
= $3,000
In this method, the depreciation is same for all the remaining useful life
The book value would be
= (Original cost of equipment) - (depreciation × number of years)
= ($50,000) - ($3,000 × 5 years)
= $50,000 - $15,000
= $35,000
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