Answer:
$2954.22
Explanation:
We are given a present value of $360000 which needs to be paid in the future for the mortgage of a house therefore we are further told that $60000 of down payment has been made so now we are required to pay $300000 as monthly installments for the next 15 years so this is a present value annuity problem as we will have future regular periodic payments that for a house mortgage so firstly to interpret this information properly we will use the present value annuity to find the monthly payments which the formula is as follows:
Pv = Cx[(1 -(1+i)^-n)/i]
where C is the periodic payment we are looking for.
Pv is the present value for the home which is $300000 as a down payment of $60000 was made.
i is the interest rate which is 8.5%/12 as we are told it is compounded monthly.
n is the number of periods the in which the mortgage payments are made which is 15 years X 12 months =180 payments.
now we will substitute in the above mentioned formula :
$300000 = Cx[(1-(1+8.5%/12)^-180)/(8.5%/12)] now we will divide both sides with what multiplies C in brackets to solve for C
$300000/[(1-(1+8.5%/12)^-180)/(8.5%/12)] = C
$2954.218674 = C now we round off to two decimal places
C= $2954.22 which will be the monthly payment for this mortgage for 15 years every month.
Answer:
The beginning balance in accounts receivable was: $47,500
Explanation:
Sales reported on the income statement were $385,500, Accounts receivable increased of $385,500 during the period.
Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $359,000. The company collected $359,000 from the sales. Accounts receivable decreased of $359,000 during the period.
The beginning balance in accounts receivable = The ending balance of accounts receivable + Accounts receivable decreased during the period - Accounts receivable increased during the period = $74,000 + $359,000 - $385,500 = $47,500
Answer:
Book value= $51,875
Explanation:
Giving the following information:
Purchase price= $80,000
Salvage value= $5,000
Useful life= 8 years
<u>First, we need to calculate the annual depreciation under the straight-line method:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (80,000 - 5,000) / 8
Annual depreciation= $9,375
<u>Now, we can determine the book value at the end of 2019:</u>
Book value= purchase price - accumulated depreciation
Book value= 80,000 - (9,375*3)
Book value= $51,875
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