Answer:
$159,000
Explanation:
We are going to compute an A which is equivalent to $100,000 at the end of 10 years.
Therefore:
A= $100,000 (A/F, 5%, 10)
= $100,000 (0.0795) = $7,950
Infinite series is :
P= A/i= $7,950/0.05= $159,000
Therefore the money needed is $159,000
Answer:
C
Explanation:
Escrow service is a form of risk mitigation medium in the course of a transaction , where a third party receives and disburses money for the main transacting parties as can be seen in the scenario given .
Nothing is really wrong in the transaction as suspected by the Wrights but a difference in the rules guiding escrow in North and South Carolina.
Escrow instruction are due for signing in South Carolina by both parties immediately after they have all signed the purchase agreement , about 60 days ahead of the actual close of the escrow date , while in North Carolina , escrow are not signed until the day before the actual close of escrow.
Answer:
5. 11.1%
Explanation:
the options for this question are missing:
- 5%
- 7.8%
- 10%
- 10.5%
- 11.1%
I prepared the following equation:
$100,000 = $45,000(1 + i)³ + x(1 + i)⁵
There is something that we must remember about zero coupon bonds, and that is that they are sold in thousands. This equation is complex, but there is an easier way to solve it. We can plug in the options to determine which % will result in a possible answer.
The answer is 11.1%, since the other options resulted in numbers which are not even close to a thousand.
$100,000 = $45,000(1.111)³ + x(1.111)⁵
$100,000 = $61,709.88 + 1.2763x
$38,290.12 = 1.2763x
x = $38,290.12 / 1.2763 = $30,000
The authoritative body designated to promulgate standards concerning an accountant's association with unaudited financial statements of an entity that is not required to file financial statements with an agency regulating the issuance of the entity's securities is the: <u>accounting and review services committee</u>.
<u>Explanation</u>:
The Accounting and Review Services Committee is a committee that engages in reviewing or compiling the unaudited financial statement.
An unaudited financial statement is a document that is not submitted by an individual for verification and review process. The financial statement is said to be unaudited until they are reviewed and approved by a certified external auditor.
The accounting and review services committee are responsible for promulgating standards regarding accountant association. The auditor helps in reviewing the financial statement of the individual.
Answer:
B. Avoidable
Explanation:
A relevant cost is a cost that only relates to a specific management decision. This means that a relevant cost is a cost that differs between alternatives being considered . Fixed , Variable and Sunk cost will always exists so they are not relevant when comparing two alternatives.
Avoidable costs, will exists if we choose a particular alternative. So it's relevant for your decision.
