I have a friend, and he wants to lend an amount of ₱250,000 today. Then he wanted to pay it back in twenty annual installments of ₱30,000 starting three years from today and he said, I can earn 8% of it. Will I accept his request under these terms?
Q: Mission Manufacturing’s depreciation expense for the most recent year was $72,000 and its net income…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: On December 28, 2022, Anne Company commits itself to purchase a financial asset to be classified as…
A: The gain to be recognized on the settlement date concerning the held for trading security is the…
Q: In a payroll journal entry, a credit to Federal Withholding Tax Payable indicates a.Federal taxes…
A: Solution: In payroll journal entry, Payroll expense are debited, amount paid to employee is credited…
Q: Question 5 Nike was organized in November 1971 by Bill Bowerman and Phil Knight It has shares 76,000…
A: Dividends are the part or share of profits which is being distributed to the shareholders. It can be…
Q: With respect to manufacture and sale of shirts, the salary of the factory manager would be…
A: Variable cost is the cost that changes with the change of output but per unit variable cost is fixed…
Q: Depreciation Choices and Outcome. Mulligan Co. purchased a new machine on January 1. The following…
A: Cost to be capitalise all expenses incurred to acquire an asset to get asset ready to use.…
Q: Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin…
A: Answer - Part 1 - Journal Entries : s.no Date Accounts Debit Credit 1…
Q: ABC and XYZ enter into a contract to set up a separate vehicle (entity 123) for the purpose of…
A: Introduction: The amount generated by an individual or company after deducting costs, allowances,…
Q: Required information [The following information applies to the questions displayed below.] Mary and…
A: The partnership is a form of business. A partnership is a business in which two or more people come…
Q: Cobe Company has already manufactured 22,000 units of Product A at a cost of $15 per unit. The…
A: calculation of above requirement are as follows
Q: H O CONSUMER MATHEMATICS Calculating and comparing simple interest and compound.... Linda deposits…
A: Simple interest Principal * rate* time Compound interest is interest on interest =Principal amount…
Q: A company reports the following for one of its products. Direct materials standard (4 pounds @ $3…
A: Lets understand the basics. Material price variance is a variance between the rate at which material…
Q: Which of the following statement is true? A. Lifetime learning tax credit is available for each…
A: Income Credit: The Earned Income Tax Credit, sometimes known as the EITC, is a kind of tax credit…
Q: Discount-Mart issues $17 million in bonds on January 1, 2021. The bonds have a eight-year term and…
A: One of the source used by the business organizations in order to meet their financial requirements…
Q: Perform a horizontal analysis providing both the amount and percentage change. (Round Percentage…
A: The horizontal analysis of financial statements reviews the data over multiple periods. The changes…
Q: Company X purchased trading securities in February. Company Y purchased available-for-sale…
A: The resources that a business has and anticipates turning into cash within a period of one year are…
Q: Jackson is the sole owner of JJJ Corporation (an S corporation). At the beginning of 2022, Jackson's…
A: Ordinary business loss refers to the loss which is realized through the taxpayer when the expenses…
Q: Nine Corporation contributes inventory (computers) to State University for use in its mathematics…
A: Solution:- Given, Nine Corporation contributes inventory to State University for use in its…
Q: Sandhu Travel Agency Ltd. has 400,000 common shares authorized and 126,000 shares issued on December…
A: It is given that:authorized shares – 400,000 Issue shares – 126,000 Purchase price of new shares -…
Q: So what was the cost of products sold and ending inventory under (4) LIFO, (5) FIFO, and (6) Average…
A: LIFO Method Date Purchase Cost of goods sold Balance Inventory Quantity Cost per Unit (In…
Q: Compute bond proceeds, amortizing premium by interest method, and interest expense Ware Co. produces…
A: Bond's :— It is one of the source of debt capital. It pays Fixed rate of return Periodically to…
Q: Atlantis Inc. wants to analyze the variances in its actual and budgeted gross profit. Compute for…
A: The correct option with proper calculation areas follows
Q: Linis Company produces a commercial cleaning compound known as Zide. The direct materials and direct…
A: The salary and wages provided to workers who are directly involved in the production of a particular…
Q: Revenue from property taxes should be recorded in the General Fund: O When received. O When there is…
A: The revenues earned by the government or state from the taxes, fees, interest etc. are recorded in…
Q: Question 1 The following information represent Mooncake Corporation RM 3,549,000 179,000 911,000…
A: Assumption :— All Sales are on Credit. Current Assets includes Marketable securities.
Q: Farrow Co. expects to sell 300,000 units of its product in the next period with the following…
A: Incremental income is the monetary gain or loss that results from a specific administrative…
Q: During two consecutive balance sheet dates, accumulated depreciation for Durand Corporation climbed…
A: Businesses' routine expenses and income are included in operating activities. In order to calculate…
Q: ick correct one Which of the following statements is true? A. Realized gain and recognized gain…
A: If boot is received in a like kind exchange the recognized gain cannot exceed the realized gain is a…
Q: The equation for part A, also needs the "Excess capcity" for Kitchen (meals
A: In the bar there are dining room , parking lot and kitchen. Customers come and use the services, but…
Q: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of…
A: FIFO (first in first out) refers to the inventory method under which the inventory is valued on the…
Q: Sandhu Travel Agency Ltd. has 400,000 common shares authorized and 128,000 shares issued on December…
A: The equity method is an accounting method for the investment in another company The company uses…
Q: If P 1,000 is saved for a year at a rate of 10% interest compounded quarterly, calculate the…
A: The interest on a mortgage or bank that is calculated based on both the initial principle and the…
Q: LaLa Company has income from operations of $23,280, invested assets of $97,000, and sales of…
A: ROI measures the business income in respect to the investment in the business. Higher ROI is…
Q: Lamina Equipments Company's current capital structure consists of 8% debt with a market value and…
A:
Q: Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal…
A: Stand-alone selling price is the price separately charged from the customer for the good or service.…
Q: A. The following accounts and their balances were selected from the adjusted trial balance of Point…
A: Paid in capital is the amount of cash or any other kind of consideration such as assets which is…
Q: In preparing its bank reconciliation for the month of April 2021, Waterway, Inc. has available the…
A: A bank reconciliation statement is a method of matching the cash balance with the book balance at a…
Q: C4-2 (Algo) From Recording Transactions (Including Adjusting Journal Entries) to Preparing Financial…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: DETAILS DR CR Management Fees 50,000 Wages and Salaries 124,000…
A: Statement of profit or loss is the statement which shows the revenue or expenditure, which exceeds…
Q: produces two types of glass shelving: rounded edge and squared edge. The company reports the…
A: Activity-based costing refers to the type of costing method under which the company allocates the…
Q: A company sells two types of products: standard and deluxe. It prepares the following analysis…
A: An organization's activities are identified using the activity-based costing (ABC) technique, which…
Q: janaruary, Prahbu purchased a new machine for use in the existing production line of his…
A: The Assets are recorded at Cost. The cost of Assets includes Purchase Price, installation cost…
Q: When using a standard cost system what term refers to the differences between actual and standard…
A: Difference of actual and standard cost is measured to calculate the variance. The variances of cost…
Q: In 2021, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are full-time…
A: Earned income credit is a credit against the tax payable on taxable income. It is allowed to…
Q: Happy Woolly Inc. provides the following information about its postretirement benefit plan for the…
A: Pension is a kind of income an employee starts receiving on monthly basis after his/her services…
Q: g and noncontrolling interests was $500,000 over the book value of the subsidiary’s Stockholders’…
A: The subsidiary company refers to the concept when a business owns partially or some percentage of a…
Q: About $140,000, Lamar Corporation bought a piece of property. Later this year but, the business sold…
A: Financial statements are a group of summaries of information regarding the cash movements, cash…
Q: Question 1 Using the following data, prepare the operating activities section of a statement of cash…
A: Note: As per our guidelines, only the first question shall be answered. 1. Statement of Cash…
Q: (b) Classify whether the items below refer to direct material cost (DM), direct labour cost (DL), or…
A: Direct Material Cost :— It is the cost of materials that is directly traceable to product. It means…
Q: e Corporation has a single class of common stock outstanding. Joe owns 450 shares, which he…
A: Shares and Share Capital : Share is the part of capital, the company's capital divided into a number…
Deffered Annuity
Show solution and
I have a friend, and he wants to lend an amount of ₱250,000 today. Then he wanted to pay it back in twenty annual installments of ₱30,000 starting three years from today and he said, I can earn 8% of it. Will I accept his request under these terms?
Step by step
Solved in 2 steps
- Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?Engineering Economics. Please show your solution. Mr. Y bought a house and lot for Php2,800,000 with a downpayment of Php300,000. Interest is 5% to be paid for 30 years on a monthly basis. What is the present worth of our annuity?Answer the following question correctly refer to the given problem below and show your Complete Solution (Given, Required, Equation, Solution, Answer). Mr. Quiton loans an amount of Php 30,000.00 which is to be paid monthly for 5 years that will start at the end of 4 years , if converted monthly at 12%, how much is the monthly payment ? 1. What is the type of annuity illustrated in the given problem? A. Simple Annuity B. General Annuity C. Deferred Annuity D. Complex Annuity 2. Compute for the interest rate per period. A. 0.01 B. 0.05 C. 0.10 D. 0.12 3. Determine the present value of the loan. A. Php 12,000.00 B. Php 30,000.00 C. Php 60,000.00 D. Php 75,000.00
- (Solving for i of an annuity) You lend a friend $30,000, which your friend will repay in five equal annual end-of-the year payments of $10,000, with first payment to be received 1 year from now. What rate of return does your loan receive?Solve and show complete solutions. Mr. Santos will deposit P10, 000 at the ABC bank at the end of each quarter for 2 years. If the bank gives out 9% compounded quarterly, find the amount to his credit just after the last deposit? What monthly payment into a sinking fund at 8% compounded semi –annually will be needed to raise P50, 200 at the end of 2 years and 6 months?A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.29%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.) $
- A $6,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. ordinary annuity sinking fund amortization present value of an annuity present value (b) Answer the question. (Round your answer to the nearest cent.)A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.04%, compounded semi annually? (a)Decide whether the problem relates to an ordinary annuity or an annuity due. (B)Solve the problem. (round your answer to the nearest sent)A $3,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments. How much is each payment if the interest rate is 7.5% compounded annually? (a) State the type. A. present valueB.sinking fund C.present value of an annuityD.amortizationE.ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.)
- It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your 40-year work span. For simplicity, assume this is an annuity of $2,000 per year, starting with your 26th birthday and continuing through your 65th birthday. Solve, a. What is the future equivalent worth of your Social Security savings when you retire at age 65 if the government’s interest rate is 6% per year? b. What annual withdrawal can you make if you expect to live 20 years in retirement? Let i= 6% per year.Teal and Associates needs to borrow $65,000. The best loan they can find is one at 12% that must be repaid in monthly installments over the next 5 1/2 1 2 years. How much are the monthly payments? (a) State the type. A. ordinary annuityB.sinking fund C.present valueD.amortizationE.future value (b) Answer the question. (Round your answer to the nearest cent.)(Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $15,000 at the end of 7 years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 9 percent compounded annually, how much must you deposit each year to reach your goal? To reach your goal, your annual deposit must be $nothing. (Round to the nearest cent.)