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Alexxandr [17]
2 years ago
10

On January 1, 2020, ABC Company decided to begin accumulating a fund for asset replacement five years later. The company plans t

o make five annual deposits of $60,000 at 9% each January 1 beginning in 2020. What will be the balance in the fund, on January 1, 2025 (one year after the last deposit)?
Business
1 answer:
posledela2 years ago
7 0

Answer:

$391,400

Explanation:

we can use the future value formula for an annuity due:

future value of an annuity due = (1 + r) x payment x {[(1 + r)ⁿ - 1] / r}

  • payment = $60,000
  • r = 9%
  • n = 5

FV = (1 + 9%) x $60,000 x {[(1 + 9%)⁵ - 1] / 9%} = 1.09 x $60,000 x {[1.09⁵ - 1] / 9%} = $65,400 x 5.9847 = $391,400

In an annuity due, the first payment is done immediately and not at the end of the period like a normal annuity.

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Answer:

Kari has employed the method of anchoring bias

Explanation:

Anchoring Bias is a bias where the person anchors his/her thinking based on a reference or starting point. For example, if we enter a store and see a shirt of $1000 and then a shirt for $100 we will perceive the second shirt as cheaper since we anchor our judgment based on the first shirt price we saw.

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Answer and Explanation:

The Journal entries are shown below:-

1. Cash Dr, $600,000

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(Being Bonds issued is recorded)

Here we debited the cash as increased the assets and we credited the bonds payable as  it also increased the liabilities

2. Interest Expense Dr, $21,000 ($600000 × 7% × 6 ÷ 12)

              To Cash $21,000

(Being first semi annual interest paid is recorded)

Here we debited the interest expenses as it increased the expenses and we credited the cash as  it decreased the assets

3. Interest Expense Dr, $21,000 ($600,000 × 7% × 6 ÷ 12)

              To Cash $21,000

(Being second semi annual interest paid is recorded)

Here we debited the interest expenses as it increased the expenses and we credited the cash as  it decreased the assets

4 0
3 years ago
What do socialism and communism have in common? Economics
elena-14-01-66 [18.8K]

Answer:

Both socialism and communism are essentially economic philosophies advocating public rather than private ownership, especially of the means of production, distribution and exchange of goods (i.e., making money) in a society.

Explanation:

4 0
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In your opinion, what is the most important factor affecting the demand for sports and entertainment commodities?
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Answer:

Explanation:price of the commodity

price of related goods

income if the consumer

taste and preference

exceptation of change of price

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Answer:

It belongs to Alma because Susan abandoned it and Alma took possession of it

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By common law, Alma is a person who has found an abandoned property and she may claim it. To do this, she has to take some definite steps to show her claim. Alma can claim this abandoned piece of chair by taking it into her house, or by placing a sign on it to show that she now owns it.

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