Answer:
C
Explanation:
Compound interest is a practice of reinvesting the the principal amount and the interest earned instead of paying out the interest . With this method , the total value of money increases with time.
However , the value of the money (principal +interest ) in the first year sing this method is the same as the simple interest method.
If a money is worth 10% compounded annually . $1100 in one year is $1000 today.
Workings
Interest rate - 10%
One year value (100%+10%) - $1100
Current value = 100/110*1100
= $1000
Answer:
Dropping Freeflight's routes between Europe and United States would reduce the overall profits of Freeflight Airlines by $304,000 monthly($880000-$576000)
Explanation:
As a result of dropping routes between Europe and United States,total revenue drops to $6.22m and variable costs to $2.22m,but only 20% of fixed costs can be saved ,hence current fixed costs become $3.42m giving overall profit of $0.58m instead of $0.88m recorded previously when all routes were operational.
Find attached spreadsheet showing differential cost schedule.
Tbh I would save over $500
It was a loss of 18$ per month
you find the sum of em all and then divide through the number of months
Answer:
It will be considered a long-term capital gains as Renata Corporation holded for a priod of time longer than a year.
The gain will be the difference between tax basis (cost - tax purporse depreciation) which amount to $13,000
Explanation:
selling price 110,000
180,000 - 83,000 = 97,000 tax basis
long.term capital gain 13,000
