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lukranit [14]
3 years ago
7

Jane bought a $3,000 audio system and agreed to pay for the purchase in 10 equal annual installments beginning one year from tod

ay. The interest rate is 12%. What is the amount of the annual installment?
Business
1 answer:
Papessa [141]3 years ago
7 0

Answer:

Jane

The amount of the annual installment is:

$530.98

Explanation:

Present value of audio system = $3,000

Interest rate (r) = 12%

Number of years for installments (n) = 10 years

The future value = PV * (1 + r)∧n

= $3,000 * (1 + 0.12)∧10

= Future value of the audio system

= $9,318 ($3,000 * 3.106)

Jane will need to contribute $530.98 at the end of each period to reach the future value of $9,318.00.

From online financial calculator:

FV (Future Value) $9,318.00

PV (Present Value) $3,000.15

N (Number of Periods) 10.000

I/Y (Interest Rate) 12.000%

PMT (Periodic Payment) $530.98

Starting Investment $0.00

Total Principal $5,309.78

Total Interest $4,008.22

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Answer:

$35,000

Explanation:

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Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000

7 0
3 years ago
Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory cos
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Answer:Inventory on hand Balance at the end = $4620

Explanation:

The question is unclear with regards to the requirements. however having dealt with questions of this nature in the past, I will assume the question requires us to calculate the cost of inventory on hand.

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Inventory on hand Balance = 5040+ 8700 - 14520 + 7820 - 2420

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8 0
3 years ago
An investor purchases 1,000 mutual fund shares with a Net Asset Value of $10 each, where the fund imposes a 5% contingent deferr
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Answer:

B. $9,600

Explanation:

Calculation to determine the amount he or she will receive

Amount Received=(1000*$10)*[100%-( 5% contingent deferred -1%Decrease in sales charge)

Amount Received=$10000-(100%-4%)

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4 0
3 years ago
In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then __________ are said to exist.
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In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.
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3 years ago
The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beg
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Answer:

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Include both Mark-ups and Mark-Downs and Exclude beginning inventory

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the Previous year Ending inventory :

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Kindly check the attached images below to see the step by step explanation to the question above.

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