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mel-nik [20]
3 years ago
6

An ATM with a service fee of $3 is used by a person 200 times in a year. What would be the future value in 5 years (use a 2 perc

ent rate) of the annual amount paid in ATM fees? Use
Business
2 answers:
Ierofanga [76]3 years ago
7 0

Complete question:

An ATM with a service fee of $3 is used by a person 200 times in a year. What would be the future value in 5 years (use a 2 percent rate) of the annual amount paid in ATM fees? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

Answer:

The future value of the annual amount paid in ATM fees is $662.40

Explanation:

FV = PV(1+i)^T

Where;

FV is the future value of the annual amount paid in ATM fees

PV is the present value of the annual amount paid in ATM fees

i is the interest rate

T is the time.

Given;

PV = $3 × 200 = $600

i = 2% = 0.02

T = 5 years

FV = 600(1+0.02)^5\\\\FV = 600(1.104)\\\\FV = 662.40

FV = $662.40

Therefore, the future value of the annual amount paid in ATM fees is $662.40

Eddi Din [679]3 years ago
6 0

Answer:

The future value in 5 years is $3,184.87  

Explanation:

The figure is arrived by calculating the future of the yearly total service of $600($3*200) by using applicable annuity factor for each of the years from year 1 to 5.

The annuity factor for each year is calculated as (1+r)^n, where r is the rate of return of 2% and the n the year in which the service fee relates to.

Kindly find attached for detailed computations.

Download xlsx
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During the month of June, Rowling Boutique had cash sales of$233,200 and credit sales of $153,700, both of which include the 6%s
Kitty [74]

Answer:

Cash sales = $233,200 × (100 ÷ 106)

                  = $220,000

Credit sales = $153,700 × (100 ÷ 106)

                  = $145,000

Sales tax revenue = ($220,000 + $145,000) × 6%

                              = $21,900

Therefore, the Journal is as follows:

Sales tax revenue A/c Dr. $21,900

To sales tax payable                       $21,900

(To record the sales tax payable)

5 0
2 years ago
In a department, 28,000 units are completed and transferred out and 14,400 remain in ending WIP at 85% complete. If an equivalen
Zigmanuir [339]

Answer:

The value of materials transferred out is $224,000

Explanation:

The condition for the units for transferred is that they must have been completed 100% with respect to equivalent unit cost,hence the materials transferred out should be valued at full $8.00 per direct material.

The value of materials transferred out=28,000*$8.00

                                                              =$224,000

The value of WIP=$8.00*85%*14,400

                           =$97,920

The closing WIP of $97920  would be the beginning inventory in production next period an would ultimately form part of materials completed and transferred next period.

8 0
2 years ago
Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule
Alex

Solution :

Depreciation rates   16.67%      16.67%    16.67%     16.67%      16.67%      16.67%

(books)

Depreciation        $100000  $100000 $100000  $100000  $100000  $100000

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Depreciation        $35000    $35000    $35000   $35000   $35000  $35000

tax shield (books)

Depreciation rate   20%            32%         19.20%      11.50%      11.50%     5.80%

(tax)

Depreciation       $120000  $192000   $115200  $69000  $69000  $34800

(tax)

Depreciation     $42000   $67200      $40320    $24150     $24150   $12180

tax shield (tax)

6 0
3 years ago
You want to have $18,000 in 9 years for a dream vacation. If you can earn an interest rate of .5 percent per month, how much wil
stiks02 [169]

Answer:

$10,503.59

Explanation:

This question requires us to find how much you have to deposit today if:

Fv = 18,000

Time = 9 years

PV= fv/(1 + i)^n

N = 9 X 12 = 108

I/y = 0.5%

PV = $18,000 / 1.005^108

= $10,503.59

Therefore what you have to deposit today is $10,503.59

5 0
3 years ago
Devin wants to purchase DEF stock for a specified price of $40.00 or less, and he understands this request will be executed afte
Lemur [1.5K]

Answer:

He should use a limit order.

Explanation:

Limit order is given to a broker to buy a stock at a specified price or a price that is better that the specified price. Here Debin order will be executed at a price $40 or below when he places a limit order .

Therefore, He should use a limit order.

3 0
3 years ago
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