11.68 $ a month, i believe thats the answer, if not its pretty close...
Answer:
Changes in the equilibrium interest rate
- affects both the size of the domestic output and the allocation of capital goods among industries.
Explanation:
Changes in interest rates affects the demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages industries to increase investment spending.
The aggregate demand is determined by consumption demand and investment demand. When the rate of interest falls the level of investment increases and vice versa
An increase in the equilibrium interest rate affects demand for money. This increase in demand raises the equilibrium interest rate.
Households and businesses then try to decrease their cash holdings by purchasing bonds affecting both the size of the domestic output and the allocation of capital goods among industries.
The equilibrium interest rate changes with the economy and monetary policy.
Answer:
It is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.
Explanation:
Since Eat at State is considering buying a new food truck, and it will cost $ 65,000, but is expected to generate $ 20,000 in sales over the next 4 years, and at the end of the 4th year, the truck will be sold to Eat Like a Wolverine in Ann Arbor for $ 10,000 (after taxes), and it will require $ 5,000 in additional Net Working capital that will not be recovered when the truck is sold, and the Dean of Food Services will only authorize the purchase if it is cash positive by the end of the 4th year, to determine, using the payback period method if the truck should be purchased and why, the following calculation must be performed:
-65,000 + 20,000 + 10,000 - 5,000 = X
-70,000 + 30,000 = X
-40,000 = X
Therefore, it is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.
Answer:
Amount invested in account paying 2% = $17,000
Amount invested in account paying 5% = $12,000
Explanation:
Total amount invested = $29,000
Total Interest earned = $940
Let the amount invested in account paying 2% interest be 'x'
Therefore,
the amount invested in account paying 5% interest will be '$29,000 - x'
Now,
( 2% of x ) + [ 5% of ( $29,000 - x)] = $940
or
0.02x + 1450 - 0.05x = $940
or
- 0.03x = $940 - $1450
or
- 0.03x = - $510
or
x = $17,000
Hence,
Amount invested in account paying 2% = $17,000
Amount invested in account paying 5% = $29,000 - $17,000 = $12,000
Sorry I’m not really sure of the answer
