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bazaltina [42]
3 years ago
11

Andrew had a fire in his house that destroyed his big screen TV. He bought it 2 years ago and, according to the insurance compan

y, it has a 5 year life. If it would cost $2,000 to replace it today, how much would Andrew receive from the insurance company if he has actual cash value coverage?
Business
2 answers:
Crazy boy [7]3 years ago
8 0

Answer:

$1,200

Explanation:

Actual Cash Value defined either as i) the fair market value of the item, or ii) the Replacement Cost of the item minus depreciation based upon the age of the item that was damaged.

Replacement cost = $2,000

Depreciation= 3 years remaining of it's life = 3/5 × 100 = 60%

Actual cash value = $2,000 × 60% = $1,200.

UNO [17]3 years ago
3 0

Answer:

$1200

Explanation:

Actual Cash Value of a product is the fair market value of the product or it can be said to be the Replacement Cost of the product minus depreciation of the product based upon the age of the product that was damaged.

Replacement cost = $2,000

Depreciation = 5 years - 3 years ( remaining years ) = 2 years

= 2/5 * 100% = 40%

3 years remaining of the insurance  = 100% - 40% = 60%

therefore the Actual cash value of the big screen TV = $2,000 × 60% = $1,200.

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The smaller the required reserve ratio the larger the simple deposit multiplier. Do you agree or disagree with this statement. E
TiliK225 [7]

Answer:

Agree

Explanation:

A deposit multiplier is maximum amount of money that can be created for each unit of reserve. It is key requirement for maintaining economy's basic money supply. The simple deposit multiplier is 1 / rr * change in R. Deposit multiplier is the inverse of reserve ratio. The higher the reserve ratio the lesser will be the deposit multiplier. Reserve ratio is the minimum amount of money that must be kept in the deposit.

8 0
3 years ago
Which of the following is a characteristic of the Consolidation phase of e-commerce? predominance of pure online strategies bran
Tresset [83]

Answer: Extension and strengthening becomes more important than creating new brands

Explanation: E-commerce (electronic commerce) is a term used in the trade and commerce to describe the trading or commercial activities driven by electronic systems such as internet, social media etc,this type of commerce or trade is technologically driven. It is made up of the following stages

Stage 1 : involves the initial starting and it is characterized by a fast growth.

Stage 2: PLATEAUING GROWTH OR CONSOLIDATION OF GROWTH IS CHARACTERIZED BY THE LEVELING UP OR STABILISATION OF GROWTH AFTER THE INITIAL FAST GROWTH EXPERIENCED IN THE FIRST STAGE. In this stage, Extension and strengthening becomes more important than creating new brands.

Stage 3: Renewed growth characterized by the implemention of changes both platforms or systems, characteristics, resources and procedures etc.

7 0
3 years ago
Could someone help with the answer please
marshall27 [118]

Answer:

Explanation idea generation

4 0
3 years ago
Read 2 more answers
Present value with periodic rates. Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new w
rusak2 [61]

Answer:

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)

  • $2,820.62

and monthly payments ​(12 per​ year)?

  • $531.13

Compare the annual cash outflows of the two payments.

  • total semiannual payments per year = $2,820.62 x 2 = $5,641.24
  • total monthly payments per year = $531.13 x 12 = $6,373.56

Why does the monthly payment plan have less total cash outflow each​ year?

  • The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)?

  • $2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)

Explanation:

cabinet cost $25,000

interest rate 10%

we can use the present value of an annuity formula to determine the monthly payment:

present value = $25,000

PV annuity factor (5%, 12 periods) = 8.86325

payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62

present value = $25,000

PV annuity factor (0.8333%, 60 periods) = 47.06973

payment = PV / annuity factor = $25,000 / 47.06973 = $531.13

5 0
3 years ago
Assume that Crane Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns
Veseljchak [2.6K]

Answer:

Cost of goods sold =$61,5300

Gross Profit = $144,700

Explanation:

Given the information:

  • Purchase : $630,000
  • Purchase Returns and Allowances $25,700
  • Prchases Discounts $10,900
  • Freight-In $18,300
  • beginning inventory of $45,000
  • ending inventory of $64,600
  • net sales of $760,000

As we the, the fomular for total Goods Available for Sale

=   Beginning Inventory + Purchases + Freight-In - Purchase Returns and Allowances - Purchases Discounts

= $45,000 +  $630,000 + $18,300 - $25,700 - $10,900

= $67,9900

=> Cost of goods sold =  Total Goods Available for Sale - ending inventory

= $67,9900 - $64,600

= $61,5300

=> Gross Profit = Net sales - Cost of goods sold

= $760,000 - $61,5300

= $144,700

Hope it will find you well.

7 0
3 years ago
Read 2 more answers
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