Answer:
<em>The (minimum) annual interest rate should be at 7.28%</em>
Explanation:
<u>Compound Interest</u>
An investment consisting of a principal P, (or present value) earns interest on each period considering the previous period's amount including the interest earned (no withdrawals). This situation is defined as an investment in compound interest unlike simple interest, where each interest amount is withdrawn and the new principal is P again.
To find the future value (FV) of an investment with an interest annual rate i during n years is
If needed, we can solve the equation for i. Dividing by P:
Taking the nth-root:
Finally:
The parents will retire in n=27 years and they currently have P=$360,000 as an initial investment that they want to become into their retirement funds. Let's calculate the needed interest rate:
The (minimum) annual interest rate should be at 7.28%
Answer:
6.7590
Explanation:
Present value annuity factor for annuity due = 1 + Present value annuity factor for ordinary annuity - PVF(10%, 10 years)
Present value annuity factor for annuity due = 1 + 6.1446 - 0.3856
Present value annuity factor for annuity due = 7.1446- 0.3856
Present value annuity factor for annuity due = 6.7590
Answer:
The correct answer is "Financial forecast"
Explanation:
Financial forecast: "Prospective financial statements that present, to the best of the responsible party's knowledge and belief, a company’s expected financial position, results of operations, and cash flows".
The first one the third one and possibly the last one. I'm unsure about the last one because depending on the amount of scorpions that are hunted, the food web in that area could be negatively impacted.
Answer:
December 28, 2021
Merchandise $26,000 (debit)
Trade Payable $26,000 (credit)
January 6, 2022
Trade Payable $260 (debit)
Discount Received $260 (credit)
<em>Being recognition of discount received</em>
Trade Payable $25,740 (credit)
Cash $25,740 (credit)
<em>Being settlement of an account</em>
Explanation:
December 28, 2021
Recognise Liability and an Asset
January 6, 2022
Recognise Cash and an Income and also de-recognise a Liability