A wise response is to choose (d). Henrie purchased a stereo from his cousin. Henrie will pay $250 over the course of four years. Henrie paid $1,143 for the stereo if 9% interest is added to the installment amount.
What is the anticipated value of the annuity?The future value of an annuity is the value of a series of repeated payments at a particular future date, assuming a particular rate of return, or discount rate. With the discount rate falling, the annuity's future value rises.
How will I determine worth going forward?F = P * ([1 + I]N - 1)/I, where P is the payout amount, is the formula used to determine the future value of a regular annuity. I represents the rate of discount interest. The "" indicates that N payments will be made, where N is an exponent. F represents the annuity's future value.
The following is the future value (FV) of an Annuity (A):
FV= A [tex]{\frac{(1 + R)^{N} -1 }{R} }[/tex]
where N is the number of years and R is the interest rate.
In the given case N= 4, R= 9% and A = $250
Thus,
FV = $250[tex]\frac{(1+ \frac{9}{100}) ^{4} -1}{\frac{9}{100} }[/tex]
FV= $250 X 4.5731
FV= $ 1,143.28
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if a cash budget is prepared by quarter, the beginning cash balance for the year is the same as the beginning cash balance for the quarter and the ending cash balance for the year is the same as the ending cash for the
If a cash budget is prepared by quarter, the beginning cash balance for the year is the same as the beginning cash balance for the first quarter and the ending cash balance for the year is the same as the ending cash for the fourth quarter.
What is a budget?A budget is a financial plan that is typically used for the estimation of revenue and expenditures of an individual, business organization or government for a specified period of time, often one (1) year.
The types of budget.Generally speaking, there are different types of budget and this include the following:
Master budgetProduction budgetSales budgetFlexible budgetStatic budgetCash budgetIn conclusion, a cash budget is typically prepared towards the end of a master budget process or on a quarterly basis.
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Complete Question:
If a cash budget is prepared by quarter, the beginning cash balance for the year is the same as the beginning cash balance for the _____ quarter and the ending cash balance for the year is the same as the ending cash for the _____.
delta diamonds had 5 diamonds available for sale this year: june 1 - purchased 1 for $500; july 9 - purchased 2 for $550 each; and on september 23 - purchased 2 for $600 each. on december 24, it sold 1 of the diamonds. using lifo periodic, its ending inventory is .
Since the first purchase will be made and sold first, the cost of goods sold for this transaction will be $500. This year, Delta Diamonds had five diamonds available for purchase. On June 1, one diamond was bought.
Specification Identification Method will cost $550 as of June 9.
Since the last item purchased will be sold first, LIFO, the cost of the goods sold is $600.
The direct expenses incurred in creating the products a business sells are referred to as cost of goods sold. The cost of the materials and labor used directly to make the good are included in this sum. Indirect costs like those associated with the sales force and distribution are not included.
Due to the fact that cost of goods sold is deducted from revenues to calculate gross profit, it is a crucial financial statement indicator. The gross profit is a profitability indicator that assesses a company's capacity to effectively manage its work force and resources during the production process.
Due to the fact that cost of goods sold is an operating expense, it is shown as such on the income statements. Analysts, investors, and managers can more accurately predict the company's bottom line by being aware of the cost of goods sold. Net income will fall down as cost of goods sold rises. The business will make less money for its shareholders even though this change is advantageous for income tax purposes. In order to increase net profits, businesses attempt to keep COGS low.
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In which situation would fdi deteriorate the current account of the host country’s balance of payments?.
When a foreign subsidiary purchases a sizable portion of its raw materials.
Which could have a negative impact on a host country's balance of payments?The stated negative economic effects of FDI, particularly in the heavy industries, include balance of payments deficits, less domestic R&D, diminished competition, crowding out of domestic enterprises and lower employment.
Which of the following scenarios would an increase in FDI help the host country's current account and balance of payments?When jobs are created as a result of FDI in local suppliers as well as when employees of the MNE boost their local spending, these are considered indirect benefits of FDI.
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suppose that a certain country has an mpc of 0.9 and a real gdp of $400 billion. if its investment spending decreases by $5 billion, what will be its new level of real gdp?
$375 billion will be its new level of real GDP.
What is GDP?One of the most well-known is GDP, or gross domestic product. It is regularly cited in books, newspapers, television news, and reports by governments, central banks, and the corporate world. These days, it is commonly used as a benchmark to gauge the health of both national and global economies.
The gross domestic product is a commonly used indicator of the value added produced by the production of goods and services in a country over a certain time period. As a result, it also takes into account the money made from that manufacturing, or the sum of money spent on finished goods and services.
Thus, it is $375 billion.
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a model has shipment, product, and shipper entities. the shipment entity has no unique attributes. each shipment is identified by productnumber, shippercode, and shipmentdate. shipment is a(n) entity.
a model has shipment, product, and shipper entities. the shipment entity has no unique attributes. each shipment is identified by productnumber, shippercode, and shipmentdate. shipment is weak ntity.
What is shipment?
The actual act of moving goods and cargo such as commodities and merchandise is known as shipment. The term "shipping" originally referred to transportation by sea, but American English has expanded it to include transportation by land and air as well (international English: "carriage"). The term "logistics," which was adopted from the military context, is also used in the same way. Door-to-door shipping, also known as DTD or D2D shipping, is the process of transporting goods domestically or internationally from the point of origin (POI) to the location while generally using the same piece of equipment as well as avoiding multiple transactions, transloading, as well as cross-docking without interim storage. Many global shipping companies offer an international DTD service, which may include intermodal shipment utilising containerized cargo.
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jared was shopping for a new lawnmower. one of the brands he was looking at would give him $25 back on his purchase if he mailed in a form with a copy of his receipt. this type of sales promotion is called a .
Jared was shopping for a new lawnmower. one of the brands he was looking at would give him $25 back on his purchase if he mailed in a form with a copy of his receipt. this type of sales promotion is called a personalized promotion.
Advertising has 3 number one objectives: to inform, to persuade, and to remind. Informative Advertising creates recognition of brands, merchandise, services, and ideas. It pronounces new merchandise and applications and might teach human beings approximately the attributes and blessings of latest or set up merchandise.
Today, sales marketing entails growing smooth two-manner verbal exchange among clients and the business, monitoring consumer sports and imparting tailor-made records to clients primarily based totally on the one's sports.
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Assume that stock prices and home values have increased, raising household wealth. At the same time, productivity increased due to new technology. What is the likely short-run impact on the economy?.
In the short term, some business economy inputs will be set at some time in the future while others will be flexible depending on the state of the economy. "Short run," as in.
The idea that an economy would act differently depending on how much time it had to process new information and react to it is known as time preference in economics. Short-term/in actuality short-run growth is driven by an increase in aggregate demand. The four pillars of AD (consumer, investment, government, and net trade) are interdependent, therefore any change to one of them will have an impact on economy growth.
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you are planning to purchase a new computer in one year and you know it will cost you $1,100. if your bank pays an annual interest rate of 10%, how much money do you need to save this year to be able to afford the purchase?
$1000 need to save this year to be able to afford the purchase of a new computer.
In order to find the money which is to be saved now for future purchases can be found by calculating the present value. It can be calculated by dividing the future cash flow by one plus the discount rate raised to the number of periods, present value is a notion based on the time value of money that argues that money earned today is worth substantially more than money earned tomorrow.
The formula for finding the present value is,
PV= [tex]\frac{FV}{(1+i)^{n} }[/tex]
Here PV is the present value which is the money to be saved for purchasing the computer which is to be found.
FV is the future value as it is known to be after 1 year. It is given by,
FV= $1,100
i is the annual interest paid by the bank. It is given by,
i= 10%
i=0.1
n is the number of years in which the interest is calculated. It is given by,
n= 1
Now, put the values in the above formula. Therefore,
PV= [tex]\frac{1100}{(1+0.1)^{1} }[/tex]
=[tex]\frac{1100}{0.1}[/tex]
=1000
So, $1000 is to be saved this year for purchasing the new computer.
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As the degree of customer contact increases in a service operation, what generally happens to the efficiency of the operation?.
The efficiency of the operation typically diminishes as the level of customer engagement rises in a service operation.
Are customer-facing service activities more or less challenging to manage than those that have less touch with customers?This conception implies that high customer contact service systems are more difficult to govern and to justify than low customer contact service systems.
What name is given to the collection of products and services that each service company offers in a particular setting?The Service Bundle A service package is described as a collection of products and services offered in a certain setting.
What name is given to the collection of products and services that each service operation offers in a certain setting?Every service system offers a particular mix of services and products in an environment that the client engages with on some level. The term "service package" refers to this entire combo.
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a local starbucks sells gift cards of $10,000 during the year. by the end of the year, customers have redeemed $8,000 of gift cards. what will be the year-end balance in the deferred revenue account?
The year - end balance in the deferred revenue account = $ 2000
Deferred revenue account :
Deferred revenue profit is plutocrat entered in advance for products or services that are going to be performed in the future. Rent payments entered in advance or periodic subscription payments entered at the morning of the time are common exemplifications of deferred revenue.
Calculating year end :Year end balance of deferred account = gift cards during year - redeemed gift cards .
= $10,000 - $8,000
= $ 2000
Hence , the year end balance = $2000.
What's year end balance?
financial year- end balance The unexpended balance at the end of a financial year . These balances are generally calculated as total operating budget less total expenses.Year end – also known as an account reference date – is the completion of an account period. At this time, businesses need to carry out specific procedures to close their books.
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broker bob uses a trust fund account at abc bank to deposit funds received from his clients and customers. who is authorized to withdraw funds from the broker’s trust fund account?
So, in the case when bob uses a trust fund account to deposit funds generally, only the broker or, if specifically allowed in writing by the broker, one or more of the following individuals may sign withdrawals from a trust fund account of an individual broker:
(1) A sales man/ person who holds a broker license.
(2) A person holding a broker license and who has a written contract in place with the broker in accordance.
(3) A broker employee who is not licensed who has fidelity bond insurance that is at least equivalent to the whole amount of the trust funds to which the employee has access at any given time.
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For a consumer who loves almonds but has a limited budget, what is this new headline likely to trigger?.
The income effect describes how consumer demand for goods and services changes as a function of income.In general, people will start to desire more items as their money increases.In a similar vein, falling income leads to falling demand.
How does the income effect affect demand?In contrast, when earnings drop or the economy weakens, the demand for subpar goods rises.When this occurs, less priced alternatives to more expensive goods are made available.Even while certain inferior goods may be of poorer quality, the term "inferior good" refers to affordability rather than quality. While demand for inferior items declines as wealth rises, demand for typical goods rises as income rises. For the majority of commodities, a consumer's income and the amount of the good they are willing and able to purchase are positively correlated (directly).In other words, for these items, as income rises, so does demand for the product; conversely, as income declines, so does demand for the product. Both a direct and an indirect revenue effect are possible.The income effect is said to be direct when a consumer decides to alter their spending habits as a result of a change in income.For instance, if a consumer's income has decreased, they can decide to spend less on clothing. The term "income effect" describes the change in demand for a good as a result of a consumer's income changing.It is crucial to remember that we are only interested in relative income, or income calculated using market pricing. Although not always, a gain in income causes a rise in demand for products and services whereas a loss in income causes a fall in demand.When assessing the implications of the income effect, the marginal propensities to spend and save are taken into consideration.
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concord coporation developed the following information about its inventories in applying the lower of ocst or market basis in valuing inventories 91000
After Concord Company values its inventory at the lower of cost or net realizable value, the value of the inventory reported on the balance sheet would be $217,600
Inventory valuation is a process in accounting that businesses use to determine the worth of unsold inventory items when they are producing their financial accounts. For an organization, inventory stock is an asset that must have a monetary value in order to be recorded on the balance sheet. Your inventory turnover ratio may be calculated using this number, which can help you plan your purchase selections.Product A
Cost = 69,100
Nrv = 75,200
Lower of above as Inventory = $69,100
Product BCost = 49,300
Nrv = 47,700
Lower of above as inventory= $47,700
Product CCost = 100,800
Nrv = 103,000
Lower of above as inventory= $100,800
Total inventory= 69,100 + 47,700 + 100,800
= $217,600
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Concord Company developed the following information about its inventories in applying the lower of cost or market basis in valuing inventories:
Product Cost NRV
A $ 69100 $ 75200
B 49300 47700
C 103000 100800
After Concord Company values its inventory at the lower of cost or net realizable value, the value of the inventory reported on the balance sheet would be
$227500.
$219200.
$225900.
$217600.
verizon offers to sell cellular phones listing for $99.99 with a chain discount of 15/10/5. cellular company offers to sell its cellular phones that list at $102.99 with a chain discount of 25/5. if irene is to buy six phones, how much could she save if she buys from the lower-priced company
If Verizon offers to sell cellphones listing for $99.99 with a chain discount of 15/10/5, she might save $4.20 if she purchases through the selling price less expensive provider.
The ultimate price set by the seller—that is, the amount the consumer pays—is known as the selling price of a good or service. The exchange can be for a certain amount, weight, or measurement of a good or cellphones service. It is one of the most crucial elements that a business must consider. It is crucial since it will determine whether or not it survives.
Verizon : Cost = $ 99.99
Chain discount of 15/10/5
Total discount = (1-0.15)*(1-0.10)*(1-0.05)
= 0.72675
First 15% discount
The New Cost will be = 99*(1-15/100)
= 99.9980.85
On the new 10% discount is given
Now the price will be = 99.99*0.85(1-10/100)
= 99.99(0.85)(0.90)
After , a discount of 5% is given
The selling price will be = 99.99(0.85)(0.90)(1-5/100)
= 99.99*0.85*0.90*0.95
= 72.667
= $ 72.7
Similarly , For cellular
The sell price will be = 102.99(1-0.25)(1-0.05)
= 102.99
= 73.38037
$ 73.4
Irene wants to buy 6 phone
The amount she save if she buy from the lower- priced cellphones
of the company = 6(73.4-72.7)
= $4.20
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Serving as the first step in data reduction, ____________ analytics summarizes what has happened in the past and enables decision makers to learn from past behaviors, such as average dollars spent per customer and year-over-year change in sales.
Serving as the first step in data reduction, Predictive Analytics summarizes what has happened in the past and enables decision-makers to learn from past behaviors, such as average dollars spent per customer and year-over-year change in sales.
This is further explained below.
What is Predictive Analytics?Generally, The term "predictive analytics" refers to an umbrella term that covers a wide range of statistical methods, such as "data mining," "predictive modeling," and "machine learning," which examine recent and past events in order to produce forecasts about upcoming or otherwise unknowable occurrences.
Predictive Analytics, the initial stage in data reduction, summarizes what has already occurred and helps decision-makers to learn from prior behaviors, such as average consumer spending and year-over-year change in sales.
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in its fiscal 2018 annual report, nike, inc. reported cash of $3,337 million at year end. the statement of cash flows reports the following (in millions):
In its fiscal 2018 annual report, Nike, inc. The Opening cash and cash equivalents is $2317 millions.
Closing cash balance = Opening cash and cash equivalents + Net cash from operating activities + Net cash from investing activities + Net cash from financing activities
3337 = Opening cash and cash equivalents+3027 +(1067)+(940)
3337 = Opening cash and cash equivalents+1020
Opening cash and cash equivalents = 3337-1020 = $2317 millions
In the United States, sales of Converse and the NIKE Brand contributed for around 42% of total revenues in fiscal 2018, compared to 46% and 47% in fiscal 2017 and fiscal 2016, respectively. In the United States, we distribute our products under the NIKE Brand, Jordan Brand, Hurley, and Converse brands to thousands of retail customers, including shoe stores, sporting goods shops, athletic specialty shops, department stores, skate, tennis, and golf shops, among others. To encourage such sales, we work with NIKE sales offices throughout the US. About 21% of sales in the United States during the 2018 fiscal year were generated by our top three clients.Learn more about NIKE, here
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price company, a wholesaler, records annual sales revenue of $425,000, and reports cost of goods sold of $145,000. what would price report as its gross profit for the year?
Answer: 280,000.00
Explanation:
which one can be classified as manufacturing overhead? group of answer choices sales commissions paid to sales person cost of electricity to produce the tables salary of the assembly-line workers advertising cost paid to the newspaper
The price of the electricity used to make the tables might be categorized as manufacturing overhead.
The news paper's advertising charge is a selling expense that appears in electricity the revenue statement but is excluded from the production cost.
Sales commission paid to salespeople is a selling expense that is not electricity included in manufacturing expenses as reflected in the manufacturing income statement.
The wages of assembly-line employees are an administrative cost that is manufacturing excluded from production overhead.
Even without financial support and with declining oil prices, the cost of electricity generation at coal, gas, and diesel power plants is equivalent to or lower than the cost of generation at onshore wind power plants, geothermal and hydropower, and biomass-based power plants.
One of the most competitive sources of additional energy capacity may be found in many nations, including Europe, using wind energy. Individual electricity wind energy plants typically provide electricity at a cost of $0.04 per kWh without outside funding.
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what would be the effect on the income statement if the adjustments for equipment depreciation and unearned fees were omitted at the end of the year? enter all amounts as positive numbers.
If the adjustments for equipment depreciation and unearned fees were omitted at the end of the year asset will be seen as overstated.
Assets on the income statement would be exaggerated if depreciation adjustments were not documented. Moreover, expenditures would be underestimated on the financial statements, resulting in an overestimation of net earnings. If net revenue is overstated, so are retained earnings on the balance sheet. Depreciation is apportioned so that a good portion of the accumulated depreciation is charged for each fiscal period during the asset's anticipated useful life.
The main purpose of charging depreciation is to allow the company to purchase the asset later, when the life of existing machine will get over, basically by charging depreciation, the company set aside a sum of money to purchase the asset.
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city farm insurance has collection centers across the country to speed up collections. the company also makes its disbursements from remote disbursement centers, so the firm's checks will take longer to clear the bank. collection time has been reduced by four days and disbursement time increased by two days because of these policies. excess funds are being invested in short-term instruments yielding 4 percent per annum. a. if city farm has $4.15 million per day in collections and $3.20 million per day in disbursements, how many dollars has the cash management system freed up? (enter your answer in dollars not in millions (e.g., $1,234,567).)
Excess funds are invested in short-term instruments yielding 4 percent per annum. a. if city farm has $4.15 million per day in collections and $3.20 million per day in disbursements, Total cash freed up = $22,750,000
Cash freed up from collection equals daily collection amount times the shorter collection period.
= 4,500,000 x 3.5 days
= 15,750,000
funds freed up from Disbursement = Daily disbursement amount times lengthened disbursement period
= 3,500,000 x 2 days
= 7,000,000
15,750,000 plus 7,000,000 in total cash were released.
Short-term instruments include, but are not limited to, certificates of deposit, bankers' acceptances, commercial paper, treasury bills, and agency discount paper. Short-term instruments are issued by a variety of different issuers, such as governments and businesses, and have a maturity of less than one year.
the complete selection of Desjardins investment funds to suit your requirements. Your ability to pursue your most exciting dreams is made possible by our finances! Web-based services
= 22,750,000
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under the modified accrual basis of accounting, gasb standards for property tax revenue recognition provide that revenue should not be recognized for property taxes collected:
Revenue for property taxes collected more than 30 days after the fiscal year's end should not be recognised on the accrual method of accounting, according to GASB guidelines.
For state and municipal governments in the United States, generally accepted accounting principles (GAAP) are developed by the Government Accounting Standards Board (GASB), a private non-governmental organisation.
The transaction process must be initiated by a crucial event in accordance with generally accepted accounting standards (GAAP). According to GAAP, revenues are acknowledged when they are earned and realised, not necessarily when they are received. However, profits are frequently made and received in a single transaction.
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when comparing mutually exclusive alternatives with the same service lives, the alternative with the highest irr value is always the most economical.
The statement above is false.
The internal rate of return (IRR) for a project will increase if the initial cost of the project can be reduced or we can conclude that IRR increase if initial outlay decreases.
The internal rate of return (IRR) can be described as a metric used in financial analysis to estimate the profitability of potential investments. Internal rate of return (IRR) also can be described as a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. To calculate internal rate of return, it has same formula as NPV does.
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when grn manufacturing experienced a slowdown in sales, it laid off the two employees with the poorest attendance. one of the employees sued the company, saying it should have laid off the most recently hired workers. what defense would grn manufacturing most likely offer?
The layoffs were instances of employment at will.
The most commonplace reasons why employees are laid off encompass cost-slicing, a team of workers discounts, relocation, buyouts, and mergers. but, enterprise proprietors can pick out different alternatives in place of terminating their personnel contracts.
Being laid off the way you have got lost your activity due to changes that the agency has determined to make on its give up.
The difference between being laid off and being fired is that in case you are fired, the corporation considers that your moves have brought on the termination. If you are laid off, you failed to necessarily do whatever is incorrect.
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You have just graduated from college and purchased a car for $7000. your credit limit is $12,000. assume that you make no payments and purchase nothing more and that there are no other fees. the monthly interest rate is 8%. what is the growth factor of your credit card balance? a. 1.02 c. 1.08 b. 1.8 d. 1.2
The growth factor of your credit card balance is 1.08.
Credit score card debt extended via way of means of $67.1 billion throughout Q2 2022. The boom in credit score card debt throughout Q2 2022 become 3.5X large than the post-Great Recession common for the second one sector of a year. Outstanding credit score card debt extended via way of means of more or less 6% throughout Q2, as compared to the preceding sector.
Paying payments on time and paying down balances in your credit score cards are the maximum effective steps you could take to elevate your credit score. Issuers document your fee conduct to the credit score bureaus each 30 days, so superb steps can assist your credit score quickly.
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Clauss cutlery sells knives to the floral industry. These knives are designed to slice through foam blocks, cut wire, and perform other similar tasks. It also sells cutting utensils to the meat-processing industry. These large heavy-duty blades can saw through carcasses quickly. Clauss also sells a line of cutting tools to people in the woodworking industry for sawing and shaping wood cutouts. Clauss cutlery should use a _____ sales organization.
Claus cutlery should use a customer sales organization.
What exactly do you mean by "client"?An individual or business that purchases goods or services from another company is known as a customer. Customers are crucial to businesses because they generate income; without them, they would cease to exist.
Which four types of clients are there?It's analytical. This type of personality scans a sales presentation for facts and data.
The Pleasant. The Amiable are kind, friendly, and reliable.
The Expressional
The Operator.
What do you meaning by customer?A client is an individual or business that purchases another company's goods or services. Customers are crucial to businesses because they generate income; without them, they would cease to exist.
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kerry wants to start a business to sell handmade jewelry. she is very competent at making the jewelry and teaching others to make it, and she has saved a reasonable amount of money to start the business. who of the following would make the best partner for kerry? group of answer choices
Natalie, who has business experience with accounting, management, and marketing would make the best partner for Kerry.
An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business. Businesses can be for-profit corporations or charitable institutions. Work experience in general includes business experience.
Starting a new business demands a particular level of skill, including expertise in the industry to be entered into as well as an understanding of accounting and business management. Natalie, who has managerial, financial, and marketing expertise in the business world, will complement Amanda well because Gwyn has a plethora of knowledge in these areas.
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jones runs a television ad that shows her opponent, smith, in black and white and looking tired. toward the end of the ad, jones appears smiling and in full color. in the advertisement, jones uses
In a television commercial, Jones portrays Smith, who is her rival, as worn-out and in black and white. The advertisement ends with a full-color, smiling appearance of Jones. Jones employs skewed visuals to boost his level of support.
To draw attention to a product or service, advertising practices and strategies are used. The goal of advertising is to gain attention to your good or service so that people will buy it. Although there are numerous additional uses for advertising, it is typically used to promote a particular commodity that is currently on sale. In contrast to public relations, advertising involves a message that is paid for and controlled by the advertiser.
Since the message is impersonal, it varies from personal selling. Through "branding," in which consumers link a product name or image with specific traits, commercial advertising frequently aim to boost consumption of their goods or services.
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Consumers go through five stages in the process of adopting a new product. In the ________ stage, the consumer considers whether trying the new product makes sense.
if cindy deposits $12,000 into a bank account that pays 6% interest compounded semiannually, what will the account balance be in seven years? group of answer choices 18,151 16,987 14,356 15,555
The final account balance in seven years = $18,151.
Option A is correct .
Compound interest :Compound interest is interest calculated on the original star, which also includes all of the accumulated interest from former ages. Generating" interest on interest" is known as the power of compound interest. Interest can be compounded on any given frequence schedule, from nonstop to diurnal to annually.
Evaluation of interest :The formula of Compound interest ,
Final Amount = Principal {[1 + (Rate ÷ n) ]^ ( Time × n)}
where n = number of times interest applied per time period
Principal = $12000
Rate = 6% compounded Semiannually ,
so n = 2 as interest will be paid twice in a year.
Time = 7 Years
Final Amount = $12000 × {[1 + ( 6% ÷ 2)] ⁷ˣ²}
Final Amount = $12000 × [( 1 + 3% )¹⁴ )]
Final Amount = $12000 × [( 1 + 0.03)¹⁴ )]
Final Amount = $12000 × [( 1.03) ¹⁴ ]
Final Amount = $12000 × 1.51
Final Amount = $18151
Option A is correct .
What's amount of interest?The interest rate is the amount a lender charges a borrower and is a chance of the top — the amount lent. The interest rate on a loan is generally noted on an periodic base known as the amount principal rate( APR)
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per month excise tax is imposed on firms selling office space. d is the demand curve, s1 is the supply curve in the absence of the tax, and s2 represents the supply curve that includes the tax.
Producers will have larger tax incidence and excise tax fall on above people because the supply of office rental is more inelastic than its demand.
Tax incidence relates to the way the tax burden is divvied up between sellers and buyers. The tax incidence is ascertained by the price supply and demand elasticity. Buyers carry the largest portion of the tax burden when stock is more elastic than demand. When demand is much more elastic than supply, production companies bear the largest portion of the tax burden.
The larger the inelasticity of both demand and supply, the larger the tax income. A tax's incidence, or burden, typically falls on both consumers and producers of the paying tax good. However, if we want to predict which group will bear the majority of the burden, we only need to look at the elasticity of demand and supply.
The complete question is here:
The graph below shows the market for office rental space. A $400 per month excise tax is imposed on firms selling office space. D is the demand curve, S1 is the supply curve in the absence of the tax, and S2 represents the supply curve that includes the tax.
(Picture is given below)
Who has larger tax incidence?
producersConsumersThis excise tax falls on the above people because:
The supply of office rentals is more inelastic than the demand for office rentalsThe demand for office rentals is more inelastic than the supply of office rentalsThe supply of office rentals is more elastic than the demand for office rentalsFor office rentals, both demand and supply are highly price elasticLearn more about tax incidence is here:
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