Answer:
c. 2.36 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $750
In year 1 = $300
In year 2 = $325
In year 3 = $350
If we sum the first 2 year cash inflows than it would be $625
Now we deduct the $625 from the $750 , so the amount would be $125 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $350
So, the payback period equal to
= 2 years + ($125 ÷ $350)
= 2.36 years
In 2.36 yeas, the invested amount is recovered.
Answer:
both b and c
Explanation:
A Petty Cash Fund is a convenient way of paying for small transactions. It is mostly applied when making payment using other methods is unreasonable. The money spent should be replenished at least once to take the Petty Cash Fund back to its approved balance. Replenishment is also done when the dollar balance goes below a set level. Replenishing allows the petty cash fund to operate as intended.
Answer:
We will have $3227 at the end of 4 years.
Explanation:
In this case we are saving money each year starting with $650 in the first year, $670 in the second. $670 in the third and $830 in the last year which means the $650 saved in the first year will earn interest for 4 years, $670 for 3 years , then $670 for 2 years and $830 for 1 year. Now we have to find out the ending amount of each payment and add them up.
Future Value = Present value*(1+Interest rate)^Number of years.
FV 1st year savings=650*(1.0570)^4=811
FV 2nd year savings= 670*(1.0570)^3=791
FV 3rd year savings = 670*(1.0570)^2=748
FV 4th year savings= 830*(1.0570)^1=877
Add them all up to find how much will we have at the end of four years
=$3227
The failure to pay on a mortgage is default. Basically, the default is the failure to meet legal responsibilities in a contract, including the failure to pay back a loan. A mortgage is considered a default when a payment is late for 30 days or more.
