Answer:
The owner's equity amounts to $1,040,000
Explanation:
The formula to compute the owner's equity is as:
Owner's equity = Assets - Liabilities
Where
Assets = Land + Machinery + Cash
= $1,500,000 + $30,000 + $10,000
= $1,500,000 + $40,000
= $1,540,000
Liabilities = Loan
= $500,000
Putting the values above in the formula:
= $1,540,000 - $500,000
= $1,040,000
Answer:
Interest= $26,131.91
Explanation:
Giving the following information:
Annual deposit= $2,000
Number of periods= 20 years
Interest rate= 5%
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.05^20) - 1]} / 0.05
FV= $66,131.91
<u>Now, we can determine the interest earned:</u>
Interest= future value - total investment
Interest= 66,131.91 - 20*2,000
Interest= $26,131.91
Answer: True
Explanation:
Something that has caught the attention of many has been how electronic money has been used in countries like Kenya and Somalia. A study has confirmed that the use of mobile money has reduced poverty in places like Kenya. Mobile money is defined as money where people can make financial transactions through their phones.
This type of activity has greatly influenced poverty reduction and the high rates that occurred when people had to send money over certain distances. In countries like Somalia, there are no longer any traces of physical money, everything is virtual. In this way, the country has achieved economic stability for years. People increasingly consume through their mobile phones, making in an easier way all kind of payments.
Answer:
A. 8%
Explanation:
Profit margin = (Operating income / Revenue)
Profit margin = ($80,000 / $1,000,000)
Profit margin = 0.08
Profit margin = 8%
