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Setler [38]
3 years ago
15

The cash price for a stereo system is $900. You choose to buy it on credit and give a $100 down payment, and the balance due is

24 equal payments of $42. Installment Total= $Total of Payments + Down Payment What is the total installment price?
Business
1 answer:
rosijanka [135]3 years ago
8 0

Answer:

$ 1108 is the total installment price

Explanation:

Cash price for a stereo system = $900

Down payment made to buy stereo on credit = $ 100

Remaining amount after paying down payment = $900 - $100 = $ 800

Installment Total= $Total of Payments + Down Payment

Installment Total= $ 100 + 24 * $42 =$ 1108

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Answer: $85,000

Explanation:

Drawings are debited/deducted from the Equity account to reflect that the owner's holdings in the business has reduced.

Profit is added to the Equity account in the form of Retained Earnings.

The closing Balance on Equity is;

Closing Balance = Opening Balance + Profit - Drawings

Profit = Closing Balance - Opening Balance + Drawings

Profit = 175,000 - 120,000 + 30,000

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Answer:

12%

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