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Anuta_ua [19.1K]
3 years ago
14

Teresa rents her apartment for ​$860 per​ month, utilities not included. When she moved​ in, she paid a ​$700 security deposit u

sing money from her savings account that was paying 3​% interest. Her​ renter's insurance costs her ​$84 per year. What are​ Teresa's total annual costs of​ renting?
Business
2 answers:
Nadusha1986 [10]3 years ago
8 0

Answer:

$10,425

Explanation:

Teresa's annual cost of renting:

  • rent x 12 months = $860 x 12 = $10,320
  • annual renter's insurance = $84
  • <u>implicit costs = lost interests = $700 x 3% = $21</u>

          total $10,425

The $700 she left as security deposit should be returned to her at the end of the lease contract, so only the interest lost is considered a cost.

Sonja [21]3 years ago
7 0

Answer:

$11,125

Explanation:

The total annual cost of renting is the total amount the tenant spends to be able to rent the apartment which includes the annual rent, the security deposit, the interest lost on the money used for the security deposit and the insurance cost.

Annual cost of renting= ($860*12)+$700+($700*3%)+$84

Annual cost of renting= $10,320+$700+$21+$84

Annual cost of renting= $11,125

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Collin was hired to work on data analytics, but once he started, the job quickly changed to project management. His supervisor n
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A) Person

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3 years ago
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under:________
omeli [17]

Answer:

b. investing activities

Explanation:

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;

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2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.

3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.

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<em>Hence, a company that purchases equipment for $32,000 cash should show the transaction on the statement of cash flows under investing activities.</em>

4 0
3 years ago
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is​ $1 per​ can,
FinnZ [79.3K]

Answer:

Option (B) is correct.

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\frac{MU_x}{P_x}=\frac{MU_y}{P_y}

It is given that,

price of Pepsi(x) =​ $1 per can

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\frac{4}{1}>\frac{6}{2}

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