Answer:
See the attached picture for detailed answer.
Explanation:
See the attached picture for explanation.
Jason just joined a new gym and signed up for a one-year membership. Membership fees can be paid in 12 monthly payments of $50,
due at the beginning of each month or in one payment today. If the appropriate interest rate is 11%,.How much should he pay today for the annual membership?
1 answer:
Answer:
$570.91
Explanation:
For computing, the amount pay today for the annual membership we just need to apply the present value formula i.e to be shown in the attachment
Provided that
Future value = $0
Rate of interest = 11% ÷ 12 months = 0.916666%
NPER = 12 months
PMT = $50
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the amount paid today for the membership is $570.91
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Please see attached image to see the given data.
The trial balance totals of the debits and credits are $2,250 debit, $2,250 credit.
<span>$1000 (cash) +
$500 (Equipment) + $750 (Salaries Expense) = $2,250 Debit
$350 (Accounts Payable) + $900 (Capital) + $1000 (Service Fees) = $2,250 Credit</span>
