Answer:
A) We need to save $1,005 per month in order to have 1,500,000 in 30 years.
B) We will be able to borrow 158,579
C) We will have 2,259,361 in 35 years
D) The equivalent amount of money is 12,585
Explanation:
A) We are given a future value that we need to have in 30 years. So our future value is 1,500,000. Our present value is 0, our interest rate is 8/12=0.667. We divide 8 by 12 because we need to save money per month. The number of compounding periods are (30*12)=360. We multiply by 12 because monthly payments. Now we will enter this information in a financial calculator to find future value.
Pv= 0
FV = 1,500,000
I=0.66
N=360
Compute PMT= 1,005
B) PMT= 900
I=5.5/12=0.458
N= 30*12=360
FV=0
Compute PV
PV=158,579
C) PV= 100,000
PMT= 300
N= 35*12= 420
I=8/12=0.66
Compute FV=2,259,361
D) We need to know how much money will we need 30 years from now if we want to buy goods and services which are worth 6,000 today considering an inflation rate of 2.5%
We will multiply 6000 by (1+Inflation)^number of years
6000*(1.025)^30
=12,585
Answer:
find answer in the explanation below
Explanation:
Koby is 16 and that means he is under age for a start. That initial statement makes Fastfood liable.
As it can be seen from the question, the golden rule applies to Koby's case as it is clear he has other things to do with his time.
Primarily, he is a student and that means he has school work to do alongside putting in some hours at Fastfood. But then, he still has the right to be treated right which in this case means him getting some rest. It is therefore safe to say that the manager of Fastfood is trying to take advantage of Koby and should have given him rest.
if he had gotten some rest, he wouldn't have fallen asleep while driving and been in the accident.
Cheers
Answer:
Elasticity is an economic concept used to measure the change in the aggregate quantity demanded of a good or service in relation to price movements of that good or service. A product is considered to be elastic if the quantity demand of the product changes more than proportionally when its price increases or decreases
The most cost effective way for John to buy a house in the suburbs is:
a.Move to the suburbs and rent a house for one year before purchasing a home.
This is to test the waters. During this time, he has to acclimatize himself into living in a new environment. He has to discover the pros and cons of living in the suburbs compared to living in the city like travel time in going to work, etc.
If after a year, he finds its more beneficial to live in the suburbs, then he can buy a house there. On the other hand, if he finds it costly to live in the suburbs compared to living in the city, he simply has to pay the necessary rent and utility bills, pack up his bags, and go home.
Answer:
a. Reversal entry:
Debit Rent expense $4,650
Credit Miscellaneous Expense $4,650
Correct Entry:
Debit Rent expense $4,650
Credit Cash $4,650
b. Reversal entry:
Debit Accounts payable $3,700
Credit Cash $3,700
Correct Entry
Debit Cash $3,700
Credit Accounts Receivable $3,700
Explanation:
Reverse entry is to simply close to zero the original entry that has been made in mistake. Afterwards, record the correct entry to properly account the transaction.
To reverse the previously made entry, we simply debit what is credited and debit what is credited.
a. We need to close the rent expense credited by debiting it and credit the miscellaneous expense that is previously debited to zereod out the mistake recording. Then to record the correct entry, Debit Rent expense and Credit Cash at the amount $4,650
b. Just ike what we did on the previous transaction, we will debit the Accounts payable and credit the cash that has been recorded by mistake to zereod out the balance and then make the correct entry. Debit Cash $3,700 and credit Accounts receivable $3,700.
