Eleanor Shellstrop sells inventory in exchange for $1,000 today and $2,000 a year for 5 years (i.e., 5 payments of 2,000 starting in 1 year), starting 1 year from today. How much revenue does she recognize today? Enter a negative number if you credit revenue, positive number if you debit revenue. Assume an 8 percent effective interest rate.

Q: Jo deposits $5000 into an account on July 15, 2014. The account earns 4% compounded monthly. Just to…

A: Deposit amount (PV)=$5,000 Duration (n)=44 months and 12 days Rate of interest (i)=0.0033

Q: Payment rate = i 729.18 dollars per year Interest paid i 12395.98

A: We first need to determine the effective annual rate using the formula below: EAR = einterest rate -…

Q: Bea Fehr requires a personal loan to purchase appliances that cost S5000. She meets with the loan…

A: Cost of Equipment is  $5,000 Time period of loan is 3 years Interest rate of Institution- A is 934%…

Q: You are purchasing a home for $150,000 at an 8% APR.  Your loan period is 360 months.  If your…

A: Given Cost of home is $150,000 APR is 8%Loan period is 360 Payment is $1,100.65

Q: t is May 1. You have just bought $2600 worth of furniture. You will pay for it in 24 equal monthly…

A: The PV of an investment refers to the combined worth of the cash flows of the investment after they…

Q: Gerardo Norega bought a dinette set for $900, which he paid in 12 monthly payments of $81.90. (a)…

A: Formula used:

Q: 1) Student A has a credit balance of $20,000. The annual effective interest rate on the credit card…

A: A loan is an agreement where an amount is forwarded with the promise to pay it back in the future…

Q: a) i) Ali is paying off a loan by making $50 payments at the end of every month for 2 years, at 6%,…

A: Loan is a borrowed amount taken for the purpose of completing the shortage of funds. When an…

Q: Jean borrowed $3600 from the bank in order to buy a new piano. She will pay it off by equal payments…

A: Interest-  The monetary payment for the privilege of borrowing money is known as interest, and it is…

Q: Bill bought an oceanfront condominium for $79,900, with $6,900 down. Assuming an interest rate of 14…

A: Annuity: Annuity is defined as a series payments, whether received or made, that are equal and which…

Q: yments over two years. Find the total interest to be paid. e total interest to be paid is $ mplify…

A: In the add on interest method total amount is added to the loan amount at the beginning of the…

Q: Use a banker's year described above to answer this question. To complete the sale of a house, the…

A: Simple Interest: It is the interest charged on loan/savings account . Calculation: Daily interest is…

Q: annual

A: Introduction: The effective rate can be defined as the usage rate which a borrower would use to pay…

Q: ing a new refrigerator for $1899 at Sears. There is 7.25% sales tax added to her purchase. She plans…

A: Given, Cost of refrigerator = $1,899 Sales tax = 7.25% Annual percentage rate (APR) = 18.9% Monthly…

Q: O $352.28 (plus or minus 1 dollar) O $783.83 (plus or minus 1 dollar) O $360.70 (plus or minus 1…

A: Loan amount=8640Period=9 yearsNumber of payment=n=36Interest rate=9.57Quarterly interest…

Q: To be sure that you understand how to use the tables in Appendix A at the end of this book, solve…

A: Present value of future compounded value can be calculated by following way : Given required future…

Q: Eva Mendez decides to save up an additional down payment for a condo she hopes to purchase in 4…

A: Given information : Time period = 4 years Interest rate = 4% Quarterly payments = $970

Q: Jack sells his lawn-mowing business for $50,000 but the buyer wants to pay for it in two cash…

A: Present value of future amount is computed by following formula:-PV = wherePV = Present value of…

Q: Samantha wants to be able to withdraw $520 at the end of each month for two years while she travels,…

A: Future value of investment = C(1+r)n Where C = cash invested = 9200 r = periodic interest rate =…

Q: pose you are in a hurry to get your income refund. if you mail your tax return, you’ll receive your…

A: The interest are paid in the form of discount to the original amount but overall effective rate is…

Q: Sophia pays her rent quarterly in arrears and her year end is 31st December.  During the year she…

A: The rent expense for the period is based on the monthly rent incurred for the period whether paid or…

Q: Your parents lent you $932 to pay your rent 2 months ago.  You just paid them back today and gave…

A: Initial borrowing (P) = $932Excess paid or interest paid (i) = $60Period (n) = 2 monthsAnnual…

Q: You buy a home for $177,831 and put $11,459 down. You borrow the remainder. The mortgage company…

A: Loan is one of the alternative of financing. An individual or organization who is taking the loan…

Q: a. Andrea wants to know how much money she will have in 6 years if she deposits her $900 tax refund…

A: b. Determining the monthly deposit required to reach a total of $7,500 in 6 years:In Excel:Set up…

Q: Emily receives R1 500,00 from the bank now that charge 10,5% simple discount per annum. She has to…

A: To find the number of months after which Emily pays back the loan, we can use the formula for simple…

Q: How much will Lee receive at the end of 6 years? (Use the Table provided.) Note: Note: Do not round…

A: We can determine the amount to be repaid using the formula below:In the formula above r = annual…

Q: Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest…

A: The credit card information consists of the credit card number, expiration date, etc. The best thing…

Q: Use the following information to answer the next three questions below: You buy a house on July 1.…

A: Laon amortization schedule means where repayment during the life of loan is written with interest.

Q: Linda is buying a car for $12,560.00. Her down-payment is S3000.00 followed by 24 monthly payments…

A: The real interest that an investor earns on the investment and a borrower pays on the loan after…

Q: You are financing a car worth $26194.15 with tax included. Interest rates are 11.9% compounded…

A: A finance charge on a loan refers to the total amount of money a borrower has to pay in addition to…

Q: Nona purchased a new car earlier today for $24,000. She financed the entire amount with a five-year…

A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…

Q: Interest Earned. Lisa is depositing ​$3,500 in a​ six-month CD that pays 3.73​% interest. How much…

A: 3.73% is annual rate of interest   use formula Deposit* interest rate*6/12

Q: LO.2 On January 1, 2020, Kunto, a cash basis taxpayer, pays $46,228 181 to yield 4% (the effective…

A: Gross Income Wages, dividends, capital gains, company revenue, retirement distributions, and other…

Q: Philo needs to borrow $310,000 to purchase a home. He is able to obtain a fifteen year mortage with…

A: Loan Amount 310000 Time Period 15 Interest Rate 12%