We need to equate the total payments to the total obligations due at the end of year three. Debts The values of the R780 and R7 000 debts must be moved to the end of year three. source: helpinhomework.org For the R780 debt The future value is = P (1 + R) T S = 780 (1 + 0.11) 1 S = 865.80 For the R7 000 debt The value of the R7 000 debt at the end of year three is = P (1 + R) -T S = 7000 (1 + 0.11) -1 S = R6 306.31
Payments
There are two payments, namely R1 300 at the end of year one and R x at the end of year three. For the R1 300 payment The future value is = P (1 + R) T S = 1300 (1 + 0.11) 2 S = R1 601.73Total payments = Total obligations1601.73 + x = 865.80 + 6306.611601.73 + x = 7172.11 x = 7172.11 – 1601.73x = R5 570.38
Basic transaction processing . On November 1 of the current year, Richard Parkerestablished a sole proprietorship. The following transactions occurred during the month:
1: Parker invested $19,000 into the business.2: Paid $9,000 to acquire a used minivan.3: Purchased $1,800 of office furniture on account.4: Performed $2,100 of consulting
services
on account.5: Paid $300 of repair expenses.6: Received $800 from clients who were previously billed in item 4.7: Paid $500 on account to the supplier of office furniture in item 3.8: Received a $150 electric bill, to be paid next month.9: Parker withdrew $600 from the business.10: Received $250 in cash from clients for consulting services rendered.
