John has receivables totalling £20,000 after writing off bad debts of £600, and an allowance for doubtful debts brought forward of £1,200. He wishes to carry forward an allowance equal to 5% of receivables. What is the effect on profit of adjusting the allowance? £600 decrease £200 decrease £200 increase £400 increase
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- Suppose I want to be able to withdraw $5,000 at the end of five years and withdraw $6,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If I can earn 5% on my balances, how much must I deposit today to satisfy my withdrawal needs? A. $8,394.92 B. $9,141.37 C. $8,402.55 D. $8,724.74 E. $7,568.94a man borrowed P2000.000 from a bank and promised to pay the amount for 1 year. He received only the amount of P1920 after the bank, collected an advance interest of P80.00. Determine: interest rate rate of discount difference between A&BA man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800000 down payment, P900000 at the end of the year, P1650000 at the end of the third year and the last payment at the end of the 6th. If money was worth 16%, what is the worth of the last payment? a. P 1,121,804.11 b. P 1,221,789.23 c. P 1,329,790.42 d. P 1,451,809.21
- Ian wishes to discharge a loan of ₱ 50,000 borrowed from JB by means of periodic payments of ₱5,000. JB charges 4% interest effective per period. (payments are made at the end of each period)1. How many regular payments of ₱5,000 should Ian make?2. How much extra payment X should he make along with the last regular payment to completely discharge this loan?3. How much payment Y should he make one period after the last regular payment to completely discharge this loan?4. How much payment Z should he make on the exact time after the last regular payment has been made to completely discharge this loan?ENGINEERING ECONOMICS Reginald borrowed a certain amount on June 2015 from Meldrick. Two years later, Reginald borrowed again from Meldrick an amount of P300, 000. Reginald paid P200, 000 on June 2018 and discharged his balance by paying P151, 000 on June 2019. What was the amount borrowed by Reginald on June 2005 if the interest rate is 8% compounded annually?Suppose I want to be able to withdraw P500,000 at the end of five years and withdraw another P600,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If I can earn 4% on my balances, how much must I deposit today to satisfy my withdrawal needs?
- You choose to invest $2,985 income tax refund check (rather than spend it) in an account earning 5% compounded annually. How much will the account be worth in 30 years?Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264A lump-sum payment of $1,040,000 right now, in which case 45% will be deducted for taxes. We do not know the level of Archie’s investment skills and therefore are unsure what rate of return he will earn on the lump-sum. What is the present value?
- An individual makes five annual deposits of P 2,000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn? Select one: a. P 16,701 b. P 12,356 c. P 15,824 d. P 14,223**please do not use excelRonald Gonzales, who recently sold his Bicycle, placed P10,000 in a savings account paying annual compound interest of 6 percent. a. Calculate the amount of money that will have accrued if he leaves the money in the bank for 1, 5, and 15 years. b. b. If he moves his money into an account that pays 8 percent or one that pays 10 percent, rework part (a) using these new interest rates. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have done above?Oliver owes GH¢500 due in 4 months and GH¢700 due in 9 months. What singlepayment (i) now, (ii) in 6 months, (iii) in 1 year, will liquidate these obligations if money is worth 11%.