The cost of the car after 5 years from then, will be $15652.99.
Given here, the depreciation every year(r) 7% or 0.07per year, asset cost (of the car) is $22,500 and time period (n) is 5 years.
The value after 5 years can be calculated as,
Depreciated value = asset cost ×(1-r) n
= 22500 × (1-0.07) 5
= 15652.99$.
Thus, the car worths 15652.99$ after 5 years.
The worth of an asset after its useful life is expired, as it is diminished over time by depreciation, is its depreciated cost. The asset’s worth is continuously diminished by figuring out how much it will cost to depreciate it, but the depreciated cost technique always permits accounting records to represent an item at its current value.
Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life.
To learn more about Depreciation, refer this link.
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Answer:
1. <u>Calculation of Inventory Turnover Ratio
</u>
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
When Average inventory= Opening Inventory+ Ending Inventory / 2 = (1,542,553 + $1,735,455)/2 = $1,639,004.
Inventory Turnover ratio = $7,250,000 / $1,639,004
Inventory Turnover ratio = 4.42 times
2 If the price of wire is increasing, its good opportunity for the company to take advantage with proper planning. The company has to increase the purchase of the stock to take this advantage however it should also be noted about the opportunity cost as more money now will be invested in the stock. If the increase in Price is minimal then there is no need to increase the purchase of the stock
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Answer:
If Florida experiencing a hurricane which knocked out the regional water supply for several days then the demand for bottled water increased remarkably. This increase in the demand of bottled water shifts the demand curve rightwards and supply curve remains the same. This shift in the demand of bottled water will increase the equilibrium price and equilibrium quantity in a market economy.
Answer:
The statement that is false about mortgage loans is Advertised rates are annual percentage rates.
Explanation:
Mortgage loan refers to a loan that uses real estate as collateral to receive cash upfront to be redeemed after the loan repayment is completed. if the loan is not remitted as at when due , the lender lays claim to the real estate property.
By increasing the number of payments per year you increase your effective borrowing rate.
When you use a spreadsheet to calculate your interest rates, it uses the periodic interest rate, not the annual percentage rate.
You can find a monthly payment by dividing the annual payment by 12.
However, advertised interest rate are not the same as your loan's annual percentage rate (APR) because other charges like mortgage insurance, closing costs, discount points and loan origination fees apply.
The appropriate response is true. Stock market is the total of purchasers and dealers (a free system of financial exchanges, not a physical office or discrete substance) of stocks (likewise called offers), which speak to proprietorship guarantees on organizations.
