Answer:
Compound interest is better than simple interest
Explanation:
Compound interest is better than simple interest especially when it comes to investing. Funds grow at a faster rate in compound interest than simple interest.
Simple interest is the interest on only the principal while compound interest is the interest on principal and on the previous accumulated interest (that is, interest on interest).
The formula for simple interest is:
P x r x t
Where P is the principal
r is the interest rate
t in the time.
For compound interest:
A=P(1+r/n)^nt.
A is the amount after compounding.
P is the principal.
r is the interest rate
n is the number of times interest compounds(adds up) per year
t is the number of years.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
The owner thinks that 10,000 pizzas could be sold per month by cutting the selling price per pizza from $ 5.50 a pizza to $ 5.00.
Total revenues – Total costs = Monthly profit 5,000 pizzas 13750 – 8000 =
I will assume that at $5.50 the total sales in units are 5000. And that the variable cost per unit is $2.75 ($13750/5000) and fixed cost are $8000
Actual profit= (5000*5.5- 5000*2.75) - 8000= $5750
New price profit= (10000*5 - 10000*2.75) - 8000= $14500
I think it’s true
(Not sure)
Answer: D) present value of the remaining lease payments.
Explanation:
When recording a capital lease in the balance sheet of the lessee, the amount recorded is the<em> lower amount </em>between the present value of the remaining lease payments or the cost of the leased asset.
As the <em>cost</em> of the leased asset is <em>equal</em> to the <em>initial</em> present value of the payments, the cost will therefore be higher than the current present value of the remaining payments so the appropriate amount to put in the balance sheet will be the current present value of the remaining lease payments.
Answer:
B. $29,000
Explanation:
The cashflow from operating activities is calculated as below:
Cashflow from operating activities = Net income + Depreciation - Working capital investment
= Net income + Depreciation - (Change in inventories + Change in account receivables - Change in account payables)
Putting all the number together, we have:
123,000 = Net income + 38,000 - [(-27,000) + 31,000 - 48,000 - 12,000),
Solve the equation we get Net income = 29,000.
