Answer:
The balance in the account = $851.8
Explanation:
The future value of a lump sum is the amount expected at a future date when a sum of money is invested today at a particular rate of interest for certain number of years
.
This implies compounding the initial amount invested ($300) at the given interest rate(11%) for 10 years.This will be done as follows:
<em />
FV = PV × (1+r)^(n)
FV-Future value
r- rate of return per period
n- Number of period
PV - 300
r-11%
DATA
FV- ?
PV - 300
n- 10
FV= 300 × 1.11^10 = 851.83
The balance in the account = $851.8
Answer: $53,600
Explanation:
Credit sales increase the balance on Accounts Receivables because they represent that people owe the business.
It is therefore included in the formula for calculating the ending balance of Accounts Receivables:
Ending accounts receivables = Beginning accounts receivable + Credit sales in May - Customer payments during May
19,000 = 24,600 + Credit Sales in May - 59,200
Credit Sales in May = 19,000 + 59,200 - 24,600
= $53,600
Answer:
Loss on the retirement of $4,750
Explanation:
The following have the effect on the income statement which is a loss on the retirement and it amounts to $4,750
It is computed as:
Loss on retirement = Retirement value of the bonds - Issued price of the bonds
= $71,150 - $66,400
= $4,750
Working Note:
Issued Price of bonds = Face value - Discount on bonds payable
= $70,000 - $3,600
= $66,400
A simple discount note results in i<span>nterest that are deducted in advance, this can just be simply called a discount. </span><span> It is usually being confused with markdown. </span><span>Discount is a deduction in the price of a product base on the purchase of the customer while markdown is a reduction of price based on inability to be sold. </span>
Answer:
Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts
Explanation:
Productivity increases when human capital increases due to higher education and training, when physical capital increases due to higher investments or when new technological breakthroughs increase productivity.
By encouraging savings, investments will increase as well as physical capital which results in an increase in productivity.
