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jeyben [28]
2 years ago
12

Isabel Lopez from Lewiston, Idaho, who is 19 years old, recently received an inheritance of $54,000 from her grandmother's estat

e. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 4.0 percent APY. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 6.0 percent? Round your answer to the nearest dollar. (Hint: Use Appendix A.1 or visit the Garman/Forgue companion website.) Round Future value of a Single Amount in intermediate calculations to four decimal places.
Business
1 answer:
Zielflug [23.3K]2 years ago
3 0

Answer:

She will have $16,772.59 more in the second investment.

Explanation:

Giving the following information:

Recently she received an inheritance of $54,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education.

We need to use the following formula:

FV= PV*(1+i)^n

First savings account:

FV= 54,000*(1+0.04)^10= $79,933.19

Second investment:

FV= 54,000*(1+0.06)^10= $96,705.78

She will have (96,705.78 - 79,933.19) $16,772.59 more in the second investment.

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TRANSACTIONS1. John Amos started the business with a cash investment of $60,000.2. Purchased equipment for $22,000 on credit.3.
Tanya [424]

Answer:

Cash  44,250      

Receivables  $1,850      

Equipment $26,600        

Accounts payable 9,000    

Capital 60,000    

Revenue 8,150  

Expenses 4,450

Explanation:

The question is to determine the recording of the transactions above on the Accounting equation

The accounting equation says Assets = Liabilities + Owners' Equity

In this context assets = Cash, Receivables and Equipment

Liabilities = Payables

Owners' Equity = Capital + Revenue - Expenses

The Accounting Equation

ASSETS                                            = LIABILITIES       +     OWNERS EQUITY

 Cash      + Receivables + Equip.           payable   + Capital + Rev -  Expens

1. $60,000                                                                      60,000

2.                                            $22,000     $22,000

3. $3,100                                                                                        3,100

4. -4,600                                    4,600

5                      $5,050                                                                  5,050

6. -4,450                                                                                                    4,450

7. 3,200           -3,200

8. -13,000                                                    -13,000

<u>     44,250        $1,850        $26,600         9,000    60,000     8,150   4,450</u>                  

6 0
3 years ago
Over the course of a year, Retail Market, Inc., sells goods from its inventory and one of its warehouses. In exchange, Retail re
maria [59]

Answer:

The answer is: D) The sale of the goods.

Explanation:

Article 2 of the Uniform Commercial Code (UCC) governs contracts for the sales of goods. Goods are defined as movable property. Usually the sales of services are not included in Article 2, unless the transaction includes the sales of goods. The sales of intangible assets is not included either.

5 0
3 years ago
The original cost of an inventory item is below both replacement cost and net realizable value. The net realizable value less no
Tanzania [10]

Answer:

D) Original cost.

Explanation:

When the company uses the lower of cost or market method, it should assign value to its inventory by calculating the middle figure between replacement cost or net realizable value, and net realizable value - normal profit.

In this case, the market value must be either the replacement cost or the net realizable value, but both values are the highest. Since the original cost is below the market value, but above the net realizable value - normal profit, the inventory must be valued at the original cost.

4 0
3 years ago
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $91,805 $30,755 Available-fo
worty [1.4K]

Answer:

net income                                                    $63,000

+ depreciation                                                $51,700

- gain on sale of equipment                          ($1,650)

change in current assets:

- increase in accounts receivables             ($13,050)

- increase in inventory                                 ($21,300)

+ decrease in prepaid insurance                     $630

change in current liabilities:

- decrease in accounts payable                ($73,630)

- decrease in salaries payable                    ($5,800)

- decrease in notes payable                      ($51,300)

<u>net cash provided by operating activities ($51,400)</u>

Explanation:

2018 2017

Available-for-sale debt securities (not cash equivalents) 22,000 98,000 INVESTING ACTIVITY

Accounts receivable 93,000 79,950 = -13,050

Inventory 178,000 156,700 = -21,300

Prepaid insurance 2,670 3,300 = 630

Land, buildings, and equipment 1,276,000 1,138,000, INVESTING ACTIVITY

Accumulated depreciation 623,000 585,000 = 38,000 + 13,700 = 51,700

Accounts payable $88,040 $161,670 = -73,630

Salaries payable 25,200 31,000 = -5,800

Notes payable (current) 36,700 88,000 = -51,300

Bonds payable 213,000 0 FINANCING ACTIVITY

2) Equipment costing $20,000 with a book value of $6,300 was sold for $7,950 = 13,700 added to accumulated depreciation, -1,650 gain on sale

3 0
2 years ago
What is a normal good?​ a. ​ A good whose demand increases when income decreases b. ​ A good whose demand decreases when income
4vir4ik [10]

Answer:

. ​ A good whose demand decreases when income decreases

Explanation:

A normal good is a product whose demand increases as consumers' income increases. The demand may also increase as economic conditions in the country improve. Similarly, when income decrease, the demand also declines.

As people income increase, the purchasing power increase. They prefer more costly goods than give them more satisfaction. Increased income tends to make consumers abandon goods that offer less utility.  Normal goods tend to be associated with customers in high-income.

4 0
3 years ago
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