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3 years ago

One reason to buy a home instead of rent a home is:

Business

2 answers:

kobusy [5.1K]3 years ago

6 0

I think the answer is A. Homes have the potential to appreciate in value over time.

Reptile [31]3 years ago

3 0

The option A is correct.

One reason to buy a home instead of rent a home is that the homes have the potential to appreciate over time.

Further Explanation:

Buy a home:

Buy a home means to purchase a home by investing a huge amount of money. It also refers to owning. Owning means to get possession of something. For example, acquire the property, purchase a home, purchased machinery, and purchased equipment. Owning can lead to lower costs in the long term.

Rent a home:

Rent a home means the tenant pays a fixed amount of money to the owner of the home. The rent has to be paid every month. The amount of rent can be varied according to the type of house, availability of home to the nearby park, hospital and any other basic amenities, the home would be park facing and sun-facing, and many other factors should be considered for computing the amount of rent.

Justification for the correct and incorrect answer:

Homes have the potential to appreciate over time: This option is correct.

The renting home does not have any benefit regarding the increase in the price of a home; it will give the benefit to the owner of the home. So this option is correct to buy a home instead of rent is better off because it has the potential to increase the value of the home.

Homes have fewer maintenance costs: This option is incorrect.

Homes need more maintenance costs, but in case of rent a home, there is no need for maintenance costs. The maintenance cost is paid by the owner of the home.

Buying a home requires less money upfront: This option is incorrect.

To purchase a home, it requires a lot of money at the upfront time. This statement is incorrect.

Buying a home is a more flexible housing option:This option is incorrect.

Renting a home is a more flexible housing option than buying a home. Now the individual cannot move from place to place as it requires more money. This statement is incorrect.

Learn more:

1. Learn more about renting

brainly.com/question/2288011

2. Learn more about owning

brainly.com/question/2731676

3. Learn more about owning vs. renting

brainly.com/question/2665554

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Owning vs. Renting

Keywords: the reason to buy, a home, instead of, rent, a home is, have the potential, appreciate, value over time, fewer, maintenance costs, less money, upfront, more flexible, housing option.

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Answer:

Explained below.

Explanation:

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4 years ago

Calculate the present value of the following annuity streams:

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Answer:

a. = $29,503.95

b. = $75,302.15

c. = $31,274.18

d. = $79,820.27

Explanation:

A financial product that gives an investor a fixed stream of payments over period of time is called an annuity.

The two types of annuity are in the question. The first is an ordinary annuity while second is annuity due.

An ordinary annuity gives investors payments at the end of each time period. The formula that is used to calculate the Present Value (PV) of ordinary annuity is:

PVo = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] ....................................... (1)

Where

PVo = Present value of an ordinary annuity

P = periodical payment

r = interest rate

n = number of periods

An annuity due gives investors payments at the beginning of each time period. The formula is used to calculate the Present Value (PV) of annuity due is:

PVd = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] × (1+r) .......................................... (2)

Where

PVd = Present value of an annuity due.

P, r and n are already described above.

Question "a"

This is an ordinary annual annuity, and equation (1) will be used to calculate the PV as follows:

PVo = P × [{1 - [1 ÷ (1+r)]^n} ÷ r]

Where,

P = yearly payment = $6,000

r = interest rate = 6% = 0.06

n = number of years = 6

PVo = $6,000 × [{1 - [1 ÷ (1+0.06)]^6} ÷ 0.06]

= $29,503.95

Question "b"

This is an ordinary quarterly annuity, and equation (1) will also be used to calculate the PV as follows:

PVo = P × [{1 - [1 ÷ (1+r)]^n} ÷ r]

Where,

P = quarterly payment = $6,000

r = interest rate = 6% = 0.06

n = number of quarters = 6 × 4 = 24

PVo = $6,000 × [{1 - [1 ÷ (1+0.06)]^24} ÷ 0.06]

= $75,302.15

Question "c"

This is an annual annuity due, and equation (2) will be used to calculate the PV as follows:

PVd = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] × (1+r)

Where,

P = yearly payment = $6,000

r = interest rate = 6% = 0.06

n = number of years = 6

PVd = $6,000 × [{1 - [1 ÷ (1+0.06)]^6} ÷ 0.06] × (1+0.06)

= $31,274.18

Question "d"

This is a quarterly annuity due, and equation (2) will be used to calculate the PV as follows:

PVd = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] × (1+r)

Where,

P = yearly payment = $6,000

r = interest rate = 6% = 0.06

n = number of years = 6 × 4 = 24

PVd = $6,000 × [{1 - [1 ÷ (1+0.06)]^24} ÷ 0.06] × (1+0.06)

= $79,820.27

All the best!

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Answer:

The journal entry is given below.

Explanation:

Journal entry.

Aug.15 2020 Cash A/c Dr $260,286

Reserve amount A/c Dr $11,076

Loss on sale A/c Dr $9,058

To Recourse obligation A/c $3,520

To Accounts receivable A/c $276,900

Computation are as follows:

Accounts Receivable = $276,900

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Loss on sale = Finance charges + Recourse obligation = $9,058

Cash proceeds = Accounts Receivable - Finance charges - Reserve amount = $260,286

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