This problem is solved by using the compound interest formula:
A=P(1+(I/period))^(number of periods)
Where A = amount accumulated and P = amount loaned and I = Interest
A = ? P = $2, 000, I = 0.115, Period = 2 (semi annually) Number of period = 2
*7 (I. e paid twice over a 7 yrs span)
So we have
A = 2000 ( 1 + 0.115/2)^(14)
A = 2000 ( 1 + 0.0575)^(14)
A = 2000 (1.0575)^(14)
A = 2000 (2.1873851765154) = 4374.77035
So we have 4374.80 to the nearest cent.
Answer:
Option B, IRR is 14.42%
Explanation:
The IRR is the rate of return that equates the cost of the project to the present value of cash flows receivable from the project in future.
Using an excel approach, the formula formula IRR is given as:
=irr(values)
The values in this case are
-$1300 in year 0
$450 in year 1
$450 in year two
$450 in year 3
$450 in year 4
The irr gives 14.42% as shown in the spreadsheet attached
The cost of the investment of the investment project of $1300 equals the present values of its cash flows at 14.42% rate of return
Answer: $57,600
Explanation:
Accounting works by the Accrual basis. What this means is that transactions are recorded in the period they occur not in the period they are paid for.
In the above, Lee Inc. billed its customers $57,600 for services performed during the year. This is a service company and since their revenue comes from billings, this is their revenue for the year.
It does not matter that some of the services have not been paid for, it matters that the services were performed during the year.
Answer:
The correct option is 2
Explanation:
Let us assume the current value of the investment be x
And the annual growth factor of the investment is 1.2
1. The investment value has increased or risen by 44% since it was first made
It is known that the combined growth factor of the investment is 1.44 and no information is stated regarding the actual ($) values. Therefore, the unique value could not be computed.
So, this statement lacks information and insufficient to solve for x.
2. 1 year ago, the withdrawn money worth is $600 and at present the worth of the investment would be 12% less than the actual worth.
1 year ago, the value of the investment was x / 1.2. So, the equation could be set up regarding the withdrawal.
The equation would be:
= (x/ 1.2- 600) × (1.2)
=0.88x
Therefore, the unique value to could be answered and the sufficient to answer.
NOTE: The options are missing. So I am providing the answer with the options.
Answer:
d. $234.00
Explanation:
The computation of the service fees every year is shown below:
= Service fee × weekly charge method × total number of weeks in a year
= $2.25 × 2 × 52 weeks
= $234
Since we have to compute for the year so we multiplied all three above components. Moreover, it is given in the question that if Faye use out of network than the bank service charge will be double, so we multiplied it by 2
