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denpristay [2]
3 years ago
8

Buyers Sam and Linda Pope are entering into a contract with sellers, Jim and Alana Jones in which part of the sale price of the

property will be deferred. What kind of contract is it?
a) contract of sale

b) option to buy

c) lease

d) Installment sales contract
Business
1 answer:
Alina [70]3 years ago
8 0

Answer:

d) Installment sales contract

Explanation:

A contract is described as an agreement between two or more parties commits to undertakes specific obligations.  In a sale contract, the buyer and seller agree to the exchange or foods or services for a consideration called price.

An installment sale contract is an agreement that allows the buyer to make payment for the goods or services over time. Once an agreement has bee reached, the buyer takes possession of products and is free to use them. The buyer makes regular payments for the goods (installments) and will claim ownership upon completing payments. An installment sale contract is a form of credit sale.

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Answer:

d. $(6,642)

Explanation:

The present value is the sum of after tax cash flows.

Present value can be calculated using a financial calculator

Cash flow in year 0 = $-81,000

Cash flow each year in year 1 to 3 = $27,000 + $2,900 = $29,900

I = 10%

Present value = $(6,642)

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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3 years ago
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<u>Democracy.</u>

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Democracy is a social organization characterized by popular influence and participation in the political decision-making process. In the democratic regime, the people are free to choose their rulers through votes.

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  • Freedom of expression and opinion of the individual.
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