The rate of interest banks charge on short-term
loans to their best customers is called the prime rate. This is given to
customers who have good credit record. It serves as the basis of
the lending rates that will be given to other customers. Usually, prime rates are feasible to large corporations and not with sole borrower.
After you multiply 7% to 80 you will be left with 5.60, then you add 5.60 to 80 to get $85.60. So if she has any more than $85.60 then she will be able to buy the skateboard
Answer:
Over the economic life of the asset.
Explanation:
An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.
In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).
Answer:
Final Value= $502,257.52
Explanation:
Giving the following information:
You decided to contribute $500 a month into a fund that is expected to earn 6 percent, compounded monthly. You start the contribution a month from today for 30 years.
To calculate the final value, we need to use an alternative version of the final value formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit= 500
n= 30*12= 360
i= 0.06/12= 0.005
FV= {500*[(1.005^360)-1]}/0.005= $502,257.52
