Answer:
$6,225.08
Explanation:
The computation of the future value of these cash flows in year 4 is shown below:
= Year 1 cash flow × (1 + interest rate)^year + Year 2 cash flow × (1 + interest rate)^year + Year 3 cash flow × (1 + interest rate)^year + Year 4 cash flow × (1 + interest rate)^year
= $950 × 1.08^3 + $1,180 × 1.08^2 + $1,400 × 1.08^1 + $2,140
= $950 × 1.259712 + $1,180 × 1.1664 + $1,400 × 1.08 + $2,140
= $1,196.7264 + $1,376.352 + $1,512 + $2,140
= $6,225.08
Open-ended credit is credit that can be used repeatedly.
Example: A credit card
Close-ended credit is credit that has to be paid in full by a certain date
Example: A house loan (mortgage)
Answer:
(-$10,000) Unfavorable
Explanation:
Direct materials:
Quantity = 15 pounds
Standard price = $16 per pound
Actual price = Purchase Price ÷ Purchase quantity
= 170,000 ÷ 10,000
= 17
Material price variance:
= Actual purchase quantity × (Standard price - Actual price)
= 10,000 × ($16 - $17)
= 10,000 × (-$1)
= (-$10,000) Unfavorable
Answer: Trade associations are non-profit organizations whose primary purpose is to <u>provide different learning tools for businesses in a particular industry.</u>