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3 years ago

What is the future value of your money

Business

2 answers:

babunello [35]3 years ago

5 0

Answer:

The future value of money by definition is the present value plus the interest earned. It relates to the concept that one dollar today is worth more than one dollar tomorrow because money has the capacity of earning interest.

The difficulty is to determine what interest does money earn. If you just invest your money in a CD, you will know beforehand what interest you are going to earn and can determine the future value of the CD, but if you invest in other type of assets things are not so simple. When you calculate the future value of money you assume that it will have a constant growth rate, or constant interest earned.

GalinKa [24]3 years ago

4 0

Future value is the value of an asset at a specific date. It measures the nominalfuture sum of money that a given sum of money is "worth" at a specified time in thefuture assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function.

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What does total number of allowances you are claiming mean.

Svetach [21]

Answer:

mean the amount you are getting

Explanation:

Hope this help

3 0

2 years ago

1. Albacore Corporation purchased a new machine costing $27,600 on January 1, 2017. The machine is expected to have a $1,800 sal

docker41 [41]

Answer:

Annual depreciation= $4,300

Explanation:

Giving the following information:

Purchasing price= $27,600

Salvage value= $1,800

Useful life= 6 years

To calculate the depreciation expense using the straight-line method, we need the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (27,600 - 1,800) / 6= $4,300

7 0

3 years ago

Kate is an accrual basis, calendar-year taxpayer. On November 1, 2019, Kate leased out a building for $4,500 a month. On that da

katrin2010 [14]

Answer:

$31,500

Explanation:

On November 1, 2019, Kate leased out a buliding for $4,500 per month.

On the same day( November 1, 2019) she received seven months payment for the building. Which means she received $31,500 (4,500* 7 months).

Accural taxpayers must be able to include all amount they are to receive for payments of services, once they earn it.

Since Kate is an accural taxpayer, and she receive the $31,500 payment on November 1, 2019, she must include the whole $31,500 on her 2019 tax return as a result of this transaction.

4 0

3 years ago

A company purchases merchandise with a catalog price of $30,000. The company receives a 40% trade discount from the seller. The

Svet_ta [14]

Answer:

$17,820

Explanation:

Data provided in the question:

Catalog price of the merchandise = $30,000

Trade discount received = 40%

The amount of discount received = 40% of $30,000

= 0.4 × $30,000

= $12,000

Therefore,

Cost of Merchandise = Catalog price - Discount

= $30,000 - $12,000

= $18,000

also,

credit terms = 1/10, n/30

since, the payment was made within the discount period

1% of discount will be provided

thus,

amount of discount = 1% of cost of merchandise

= 0.01 × $18,000

= $180

hence,

Net cost of the merchandise

= Cost of merchandise - Discount on credit terms

= $18,000 - $180

= $17,820

3 0

3 years ago

The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues a

Kruka [31]

Answer:

Gross Margin = $ 115,000 Contribution Margin= $ 144,500

Explanation:

Nile Castings

Income Statement

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Fixed Manufacturing Costs $ 41,000

Gross Margin $ 115,000

Less Marketing & Administrative Costs

Fixed Marketing Costs $ 38,000

Variable Marketing Costs $ 11,500

Net Profit $ 65,500

Nile Castings

Income Statement Under Absorption Method

Year 2

Sales Revenue $ 270,000

Direct Materials $63,000

Direct Labor $ 33,000

Variable Manufacturing Overheads $ 18,000

Variable Marketing & Administrative Costs $ 11,500

Contribution Margin $ 144,500

Less Fixed Costs

Fixed Manufacturing Costs $ 41,000

Fixed Marketing Coss $ 38,000

Net Profit $ 65,500

3 0

3 years ago