Answer:
(a) $21,000
(b) $112,000
(c) $34,000
Explanation:
Accounting equation is as follows:
Assets = Liabilities + Owner’s Equity
(a) $80,000 = $59,000 + Owner’s Equity
$80,000 - $59,000 = Owner’s Equity
$21,000 = Owner’s Equity
(b) Assets = $47,000 + $65,000
= $112,000
(c) $88,000 = Liabilities + $54,000
$88,000 - $54,000 = Liabilities
$34,000 = Liabilities
If you pay the balance on your credit card each month, the annual fee is the most important factor to consider when selecting a credit card. This is because all the other fees listed only occur if you carry over your balance.
Answer:
It means that your money will lose value as you will earn less interest than the grow in the inflation rate.
Explanation:
The inflation is the change on the prices of goods and services from a market basket as they become more expensive year by year. The Inflation rate of 3% suggest that the prices in the economy will increase a 3% at the end of the year while the interest on the money you have deposited in your bank account will gain only 0.5% at the end of the year.
Then the prices of good and services will growth faster than the growth in your savings. This situation makes that you lose purchase power with your money and therefore it will not be intelligent to keep the money in that savings account. The best thing to do is to search for another investment such a Term Deposit or Stocks.
Answer:
19%
Explanation:
Calculation for what The internal rate of return on the investment in the tractor-trailer is closest to
First step is to calculate Factor of the internal rate of return (IRR)
using this formula
Factor of the internal rate of return(IRR)= Cost ÷ Additional Net annual cash inflow
Let plug in the formula
Factor of the internal rate of return(IRR)= $281,656 ÷ $76,000
Factor of the internal rate of return(IRR)= 3.706
Now let determine The internal rate of return on the investment
Based on the above calculation since Factor of the internal rate of return(IRR) for 7 years is 3.706 which means that the internal rate of return (IRR) will be 19%.
Or
The internal rate of return on the investment can also be calculated using below Excel formula
=RATE(7,$76,000,-$281,656)
IRR=19%
The internal rate of return on the investment in the tractor-trailer is closest to 19%
Answer:
She is more likely to get a loan with a low interest rate
Explanation:
A low credit score indicates inadequate debt management by an individual. It communicates that the person borrows but does not pay promptly, misses on installments, or is a defaulter. A person with a low credit score is therefore considered a high-risk borrower.
In practice, a person with a poor credit score may find it challenging to obtain credit. Lenders and car dealers may set tough conditions before issuing the loan, such as a higher deposit requirement. Before applying for a car loan, an individual with a poor credit score may consider improving their score. A person with a low credit score will pay a higher interest rate for the loan, if approved.
