Answer:
The correct answer is letter "C": Time preferences for consumption.
Explanation:
American economists Irving Fisher (1867-1947) proposed the Time Preferences for Consumption theory that contrasts saving money to spending it today. According to the theory, people will weight the return of spending or saving money based on their expectations. It means, how much the goods an individual can purchase today are worth versus the return of the savings in the future.
Thus, in the case, <em>there is an evaluation of investing in Treasury Bonds versus investing today in a friend's business. The time preferences for consumption is applied when the individual compares the expected return of the Treasury bonds with what investing today could provide.</em>
The future value of a 500 annuity payment over wight years if interest rates are 14 percent is $6,616.38.
The value of an asset at a future date is its future value. It is the present value multiplied by the accumulation function, and it estimates the nominal future sum of money that a certain amount of money is "worth" at a given point in the future under the assumption of a specific interest rate, or rate of return. The value is unadjusted for inflation or any other future-related variables that may impact the real value of money. Calculations of the time worth of money use this.
The value of money changes over time; for example, $100 now is worth less than $100 in five years. This is because $100 invested today in a stock, a bond, or any other investment will grow or decrease depending on the rate of return. Additionally, due to inflation (an increase in the purchasing price), if $100 is used to acquire an item today, it's probable that $100 won't be enough to do so in five years.
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Answer:
$464
Explanation:
Periodic Inventory method is being used. That means valuation of inventory is done at the end of a specific period.
LIFO method is also used for determining the cost of inventory sold. FIFO stands for Last In First Out.
<u>Calculation of Cost of Goods Sold :</u>
41 unit × $10 = $440
3 units × $8 = $24
Total = $464
The cost of goods sold for the month is: $464
Answer: B. must pay a commission of $24,000 to the listing agent.
Explanation:
An exclusive listing agreement is a contractual agreement whereby a listing broker acts as the agent and in this case, the seller will pay a commission to the listing broker.
Since the homeowner has already signed an exclusive-listing agreement, which requires payment of 6% commission to the real estate agent but later finds a couple who purchases it for $400,000. In this case, the homeowner must still funlfil the terms of the contact and pay the listing agent the percentage that was agreed as commission and this will be:
= 6% × $400000.
= $24000
Therefore, $24000 must be paid to the listing agent.
Answer:
The cyclical unemployment rate is 4.2%
Explanation:
There is a natural unemployment rate which contains every unemployment rate which is cyclical unemployment plus structural unemployment plus frictional unemployment, so then in order to get cyclical unemployment we will use the below formula:
natural unemployment = Frictional unemployment + Cyclical unemployment +structural unemployment
therefore we are given the natural unemployment rate of 11%
Frictional Unemployment Rate of 4.4%
Structural unemployment rate of 2.4%
then we substitute on the above mentioned formula and solve for cyclical unemployment
11% =4.4% + Cyclical Unemployment Rate+ 2.4% then we transpose and solve for cyclical unemployment rate
11% - 4.4% -2.4% = Cyclical Unemployment Rate
4.2 % = Cyclical unemployment rate
this unemployment rate goes with the business cycle of any business in which if there is a recession in an economy it is accounted for even if there is economic growth it is accounted for.
