You have saved $6.000 toward the purchase of a car costing $19.000 How long will the $6,000 have to be invested at 10% compounded monthly to grow to $19,000? Identify the formula required to solve this problem. OA. m A=P(1+ where i and A is the amount at the end of n periods, P is the principal value, is the annual nominal rate, mis number of compounding periods per year, I is rate per compounding period, and n is total number of compounding periods OB. A-P(1+) where A is the amount, P is the principal, r is the annual simple interest rate and t is the time in years OC A P where A is the amount at the end of 1 years # P is the principal invested at an annual rate r compounded continuously OD. 1 Prt, where 1 is the interest, P is the principal, r is the annual simple interest rate, and t is the time in years It will take months for the investment to grow to $19,000 (Round up to the nearest integer)

11 03:03:45 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $61, 339 28,418 156, 774 Cash flows from operating activities: 2,395 259, 520 (138, 830) 194, 180 $563, 796 $65, 792 24, 267 253,000 220, 737 $563,796 $1,495,000 (794,543) 700,457 (20,610) (22,540) (259, 320) (258,350) $139,637 Year 1 $41, 170 20, 840 450 172, RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 4,790 287,678 (230,570) 81, 188 $377,538 Depreciation expense Rent expense Salaries expense other operating expenses Net income Other…

Distinguish between Income and Expenditure Account and Receiptand Payment Account.

Definitions of Common Income and Expense Items