Answer:
$26250
Explanation:
The capitalized interest wil be = Average Accumulated Expenditures * Rate of Interest.
= 375000 * 7% = $26250
Answer:
a. Plan I is better is we drive 300 miles in a day.
b. 150 miles.
Explanation:
a. if mileage is 300 then rental charges will be,
Plan I : $36 + 17 cents * miles
$36 + 0.17 * 300 = $41.10.
Plan II : $24 + 25 cents * miles
$24 + 0.25 * 300 = $99.00
Plan I total cost for 300 miles is $41.10 whereas Plan II total cost for 300 miles is $99.00. Plan I is better plan and cost effective.
b. For mileage (m) calculation we will use equation;
Plan I = Plan II
$36 + 0.17m = $24 +0.25m
0.25m - 0.17m = $36 - $24
m = $12 / 0.08
m = 150 miles.
Answer:
Interest paid each year = 5% of 1000 = $50
$1000 is to be paid at the end of 10 years.So payment each year = pmt(rate,nper,pv,fv) where rate = 0.04,nper=10 and fv =1000.
Payment into the fund =pmt(0.04,10,0,1000) = $83.29 each year
Value of the sinking fund at the end of the 4th year =pv(rate,nper.pmt) =pv(0.04,4,83.29) = 302.34
Interest earned by sinking fund in year 5 = 0.04*302.34 = 12.09
Interest on loan in 5th year = $50
So difference between the interest payment on the loan and the interest earned by the sinking fund in the fifth year. = 50-12.09 = 37.91 = $38 (to nearest whole number)
Landscaping is a good example.
