Explanation:
i=interest rate
X=current rate
2X = double current rate
n = number of years
Calculate time it takes to double at 3%:
2X = X(1+i)^n
simplify by cancelling out X
(1+i)^n = 2
substitute i = 3%
(1.03)^n =2
take log
n*log(1.03) = log(2)
n = log(2)/log(1.03) = 0.6931/0.02956 = 23.45 years
Similarly, for growth rate of 7%,
n = log(2)/log(1.07) = 0.6931 / 0.06766 = 10.24 years
So the difference is 23.45-10.24 = 13.21 years (to the hundredth) sooner
Answer:
$3.344,67
Explanation:
Investment A( Simple interest) = Cf= Ci x(1+(ixn)) = $10.000 x(1+0,0775*10)=
$17.750
Investment B (Compound interest)= Cf= Ci x(1+i)^n = $10.000 (1+0,0775)^10=
$ 21.094,67
A - B = $17.750 - 21.094,67 = - $3.344,67
Answer and Explanation:
The Journal entry is shown below:-
Bad debts expense Dr, $2,000
To Accounts receivable-Hopkins $2,000
(Being write off is recorded)
Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done
