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-Dominant- [34]
2 years ago
13

On January 1, a company agrees to pay $20,000 in three years. If the annual interest rate is 10%, determine how much cash the co

mpany can borrow with this agreement?
Business
1 answer:
Step2247 [10]2 years ago
5 0

Answer:

Amount borrow P = $15,026.296

Explanation:

Given:

Amount pay A = $20,000

Number of year n = 3

Rate r = 10% = 0.10

Find:

Amount borrow P

Computation:

A = P[1+r]ⁿ

20,000 = P[1+r]³

20,000 = P[1+0.10]³

20,000 = P[1.10]³

20,000 = P[1.331]

Amount borrow P = $15,026.296

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Why is compound interest preferable to simple interest when investing?
lions [1.4K]

Answer:

O Compound interest pays interest both on the principal and the interest earned in each period.

Explanation:

Compound interest is preferred as it measures the interest on the principal amount and the accrued interest. In the compounding interest, the interest i.e. earned should be added to the principal in order to create the new principal amount. The interest earned at the closing of every year should be more than the last period as the principal amount rises at the starting of the period

Also, the interest earned via the compound interest should be grown much faster as we compared to the fixed rate interest

Therefore the last option is correct

3 0
3 years ago
Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 o
agasfer [191]

Answer:

a) Jenna's tax basis = $45,000 + ($13,000 - $10,000) = $48,000

loss allocation = $65,000

loss limited by her tax basis = $65,000 - $48,000 = $17,000

b)  Jenna's at risk loss = $48,000 - $13,000 = $35,000

c) Jenna's loss limited by passive activity = $35,000 - $4,000 = $31,000

4 0
3 years ago
Logan owns a horse ranch. Logan dislikes horses, but he opened the ranch because he heard it was a lucrative business and he wan
Mama L [17]

Answer:

Logan Horse Ranch

The most accurate is:

e. None of the above are correct

Explanation:

Logan's payment to his brother, Luke, of $500 per hour, is not a reasonable business expense that can be deductible.  Surely, $500 per hour is not a going rate for cleaning the horse stalls per hour.  With Lucy doing grocery shopping for Logan, it does not resonate like an ordinary and necessary expense for the business. Therefore, options A to D are not correct.  This leaves only option E as the most accurate.

3 0
3 years ago
What were the origins of the Asian currency crisis?
valina [46]

Answer:

East and South east Asia

Explanation:

The crisis that later blew up to become a financial crisis over the year started from the east and south east Asia countries of Thailand , Indonesia and South korea in 1997 before spreading to other counties  leading to a fall  in value of the currencies ,and fall in stock market and assets prices as the exchange rate continued to nosedive.

It was sparked up by the inappropriate borrowing by the private sector in the previous years

8 0
3 years ago
Routine purchases may only require ______ information search, whereas one-time high expense purchases require more ______ inform
natta225 [31]

Routine purchases may only require internal information search, whereas one-time high expense purchases require more external information search time.

<h3>What is Routine purchases?</h3>

The  routine purchases are one that people make to seek for  little decision-making, however this purchases are made with “programmed behavior.

Hence , Routine purchases may only require internal information search, whereas one-time high expense purchases require more external information search time.

Find out more on Routine purchases at brainly.com/question/26242633

#SPJ1

7 0
2 years ago
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