This situation is an example of Psychology Pricing. Psychology Pricing refers to an approach of the businessman to encourage the marketers to react on emotional levels rather than logical ones. Like with this problem, the marketers usually attracted to the first number of a price than the last.
Answer:
$1, 154.873
Explanation:
The appropriate formula is
P = PV × <u> r </u>
1 − (1+r)−n
P is the amount that needs to be set aside every year
Where PV is $5000
r is 5% or 0.05
n is five years
P = 5000 x <u> 0.05 </u>
1-(1+0.05)-5
P= 5000 x <u> 0.05 </u>
1-0.783526166
P= 5000 x (0.05/0.216473834)
P = 5000 x 0.2309747976
P= 1, 154.873
What ? Getting a good grade I guess or $20 for A+
Answer:
6.25%
Explanation:
The formula for calculating interest rate is as follows
I= P x R x T
Where
I= interest, P= principal amount, T is time
in this case: I= $60.94, P=$975, T=1 year
Therefore:
$60.94 = $975 x( r/100) x 1
$60.94 =975(r/100) multiply both side by 100 to get rid of the fraction.
6094=975r
r = 6094/ 975
r = 6.2502
interest rate = 6.25%
A major difference between IFRS and GAAP relates to the A Revaluation Surplus Account.
A revaluation reserve is an equity account that stores changes in the value of fixed assets. If the revalued assets are subsequently disposed of by the company, the remaining revaluation reserve is credited to the company's retained earnings account.
This reserve is only used when the organization prepares its financial statements in accordance with International Financial Reporting Standards. No revaluation reserve is allowed for companies using generally accepted accounting principles.
A revaluation reserve is an equity account that stores changes in the value of fixed assets. If the revalued assets are subsequently disposed of by the company, the remaining revaluation reserve is credited to the company's retained earnings account.
Learn more about Revaluation here: brainly.com/question/19908089
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