Fundamental analysis determines that the price of a firm's stock is too low, given its intrinsic value. The information used in
1 answer:
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The correct statement is that at the end of two years a total interest of 1246.10 has been paid on a principal of $11940, where the interest rate is 7.45 percent. So, the correct option is B.
The calculation on monthly payment of interest can be done by ascertainment of the interest paid for two years and division of such amount by total number of months.
<h3>Calculation of Monthly Payment</h3>We know that the interest to be paid for the first year will be close to $902 and that for the second year will be calculated as follows,
So, the total interest paid at the end of the second year will be,
So, the total interest paid fully at the end of two years will be $1246.10
Hence, the correct option is B that the total interest of 1246.10 has been paid on a principal of $11940 at the end of two years upon monthly payments of such years.
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Answer:
1. Book value at end of year 2 = $13,130
2. Depreciation from year 3 for last 3 years = $3,710 each year, that is $11,130 for three years.
Explanation:
As for the provided details, we have:
Cost of machinery = $23,860
Expected life = 4 years
Salvage value = $2,400
Straight line depreciation =
Under straight line method depreciation remains constant for life of asset.
Book value at end of year 2 = $23,860 - ($5,365 2) = $13,130
Thereafter in the beginning of year 3 the estimate is made to realize that the total remaining life expected is 3 years, with salvage value $2,000
Thus, depreciation from year 3 =
Therefore, depreciation from year 3 to year 5 = $3,710 each year.
Total depreciation of last 3 years = $3,710 3 = $11,130