PV = A*[1-(1+r)^-n]/r
A = annual payment = $100,000
r = Interest rate = 8% = 0.08
n = Number of year = 20
PV = present value of the earnings
Therefore,
PV = 100,000*[1-(1+0.08)^-20]/0.08 = $981,814.74
Answer:
(64,000- 5,200 = 58,800).
Explanation:
Subtract your originial cost from the residual value. (64,000- 5,200 = 58,800).
Answer:
Explanation:
I honestly don't know how to answer this, but I can look into it and get back to you.
Answer:
Commits the fed to set a particular money supply so that it hits the announced target
Explanation:
The target rate and money supply need to be alligned for the FED to achieve its goals.
Answer:
(B) Increase both assets and equity by $180
Explanation:
The transaction analysis model tells us that:
Assets = Liabilities + Owner's Equity
Owner's equity = Contributed Capital + Retained Earnings
Retained Earnings = Net Income − Dividends
and
Net Income = Income − Expenses
The expanded accounting equation is obtain if all substitutions are made:
Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends
In the Global Cleaning Service`s case:
Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.