Technally no you will pay less but for a longer time thus leading to the same price
hope this helps
Answer:
The correct answer is B.
Explanation:
Giving the following information:
One year ago, Deltona Motor Parts deposited $16,500 in an investment account to buy new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today.
To calculate the future value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
First deposit= 16,500*(1.045^4)= 19,676.56
Second deposit= 12,000*(1.045^3)= 13,694
Third deposit= 20,000*(1.045^2)= 21,840.5
Total= $55,211.06
Answer:
$745.45
Explanation:
The expression that describes the future value of an investment (P) at an annual rate (r) for a period of n years, compounded annually is:
If the future value of an investment is $1,500 after 12 years at a rate of 6%, the present value (P) is:
The investment is worth $745.45 today.
Answer: The adjusting entry is to DR Unearned Revenue Account with $700 and CR Earned Revenue Account with $700.
Explanation:
A reduction in the unearned revenue account implies that a portion of the unearned revenue has been earned.
Unearned revenue account is a liability account that warehouses revenue paid for but yet to be earned. A reduction in the liability means an income has been earned and recognised.
Answer:
Annual depreciation= $8,760
Explanation:
Giving the following information:
Avalon Industries buys equipment for $50,000, expects to use it for Five years, and then sell it for $6,200.
We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (50,000 - 6,200)/5= $8,760
