Answer:
The equivalent present worth of the series is $27,714.
Explanation:
We have a series of five payments (n=5), paid at the end of the year, starting with $6,000 and increasing at a rate of 5% per year.
The inflation rate is 4% and the market interest rate is 11%.
The equivalent present worth of the series, where we take into account yearly increments and discount the value by inflation and interest rate, is:
Where:
h: increment in the payments (5%)
i: rate of inflation (4%)
r: market interest rate (11%)
Then,
Answer:
13%
Explanation:
The accounting rate of return (ARR) of an investment project is the accounting profit (usually before interest and tax) expressed as a percentage of the capital invested.The essential feature of ARR is that it is based on accounting profits, and the accounting value of assets employed.
Annual Net income per year=20,000
Capital employed= (Initial cost of machinery+residual value)/2
Capital employed=(280,000+30,000)/2=155,000
Project A Accounting rate of return=Annual net income per year/Capital employed
Project A Accounting rate of return=20,000/155000
=13%
When the fed sells bonds to financial institutions, new money moves directly "out of the loanable funds market".
The Federal Reserve System,sometimes alluded to as the Federal Reserve or essentially "the Fed," is the national or central bank of the United States. It was made by the Congress to give the country a more secure, more adaptable, and more steady fiscal and budgetary framework. The Federal Reserve was made on December 23, 1913, when President Woodrow Wilson marked the Federal Reserve Act into law. Today, the Federal Reserve's obligations fall into four general zones.
Answer:
B. shortage of 1,000 gallons per week
Explanation:
Price = $1
Quantity demanded = 2,000
Quantity supplied = 1,000
Shortage = Quantity demanded - Quantity supplied
= 2,000 -1,000
= 1,000 gallons per week
Therefore, As per question Quantity demand that is 2,000 and quantity supplied that is 1,000. So, in this given case the Quantity demand is more than the quantity supplied.
Hence, there is shortage of 1,000 gallons per week.
Answer:
The correct answer is d.
Explanation:
The fallacy of composition consists in inferring that something particular is true, and that therefore it is also true about a whole, basing this only because it is true about one or more of its parts. For example, if we establish that a piece of metal can not break at high temperatures, therefore the machine of which it is part will not break at high temperatures.
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