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scoray [572]
3 years ago
11

You have $7,500 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per month), while King Bank

offers 15 percent but will only compound annually. How much will your investment be worth in 17 years at each Bank? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Business
1 answer:
stiks02 [169]3 years ago
3 0

Answer:

<em>The investment will be worth $94,547 in the Regency Bank and $26,625 in the King Bank</em>

Explanation:

<u>Compound and Simple Interest</u>

The main difference between simple and compound interest is the fact that in the simple interest, each amount earned by period of investment, is withdrawn from the account. This means that each new period of investment starts with the same principal P. The formula to compute the final value is

FV=P(1+rt)

Where r is the interest rate and t is the time.

In compound interest, each amount earned by period is added to the previous initial amount, making a new principal for the new period. This means that the account earns interest of interest. The formula is

FV=P(1+r)^t

Let's plug in the given values: P=7,500 ; r=15%=0.15 ; t=17 years. We must be careful to use the adequate values for r and t, because the investement is compounded monthly, thus we must convert both values to its equivalent monthly:

i=0.15/12=0.0125

t=17*12=204

FV=7,500(1+0.0125)^{204}=\$94,547.00

Now for the simple interest:

FV=7,500(1+0.15\cdot 17)=$$26,625.00

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Irving purchase a car for $5,000 his interest rate is 10% for the year how much will he pay in one year's time​
Anna35 [415]

Answer:

$500

Explanation:

The cost of the car is $5000

the interest is 10% per year

the interest paid in one year time will be

I= p x r x t

p = $5000; r =10% or 0.1 ;and t = 1

I = $5000 x 0.1 x 1

I= $500 x 1

Interest payable in one year is $500

3 0
3 years ago
The following stockholders' equity accounts arranged alphabetically are in the ledger of Wildhorse Co. at December 31, 2020.
Andrei [34K]

Answer:

Wildhorse Co.

The stockholders' equity section of the Balance Sheet at December 31, 2020

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

Explanation:

a) Data:

Preferred Stock (8%, $101 par, noncumulative)                      414,100

Paid-in Capital in Excess of Par-Preferred Stock                    48,700

Common Stock ($12 stated value)                                      1,776,000

Paid-in Capital in Excess of Stated Value-Common Stock 659,000

Treasury Stock-Common (7,900 shares)                             (96,000)

Retained Earnings                                                                 782,000

Total stockholders' equity                                               $3,583,800

b) The major components of the stockholders' equity include the stock accounts, paid-in capital, retained earnings, and the treasury stock.  The stockholders' equity represents the difference between the assets and the liabilities of Wildhorse Co.  The equity section shows the capital contributions of Wildhorse stockholders and the accumulated retained profits.

5 0
3 years ago
During 2021, its first year of operations, Pave Construction provides services on account of $124,000. By the end of 2021, cash
7nadin3 [17]

Answer:

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

Explanation:

During 2021, Pave Construction provides services on account of $124,000. By the end of 2021, cash collections on these accounts total $92,000.

The balance of uncollected accounts on December 31, 2021 = $124,000 - $92,000 = $32,000

Pave estimates that 30% of the uncollected accounts will be uncollectible.

Estimated uncollectible = 30% x $32,000 = $9,600

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

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