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2 years ago

Capitalization of interest is adding accrued

1 answer:

6 0

It is true that capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

<h3>What is interest capitalization?</h3>

This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.

Hence, Capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

Learn more about interest capitalization here: brainly.com/question/417585

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16. GDP Growth Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2009 dollars) 2011 1

dmitriy555 [2]

Answer:

The percentage change in nominal GDP from 2013 to 2014 was 4.29%

The percentage change in real GDP from 2012 to 2013 was 1.48%

The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE

Explanation:

In order to calculate this we just have to calculate the percentages with a rule of thirds:

$\frac{GDP1}{100}= \frac{GDP2}{x}$

To calculate the first one we use the nominal GDP which is the GDP with the current market value:

$\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{16,663.2}{100}= \frac{17,348.1 }{x}\\x=\frac{(100)(17,348.1}{16,663.2} \\x=4.29%$

To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:

$\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{15,354.6}{100}= \frac{15,583.3}{x}\\x=\frac{(100)(15,583.3}{15,354.6} \\x=1.48%$

To calculate the 2011 to 2012 we insert the values:

$\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{ 15,020.6}{100}= \frac{15,354.6}{x}\\x=\frac{(100)(15,354.6}{ 15,020.6} \\x=2.22%$

So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012

5 0

3 years ago

If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost o

Luden [163]

Answer:

CAPM= RF+B(RM-RF)

= 9+1.6(13-9)

=15.4%

13=RS+1.6*(4)

13=RS+6.4

RS=13-6.4

RS=6.6%

Explanation:

3 0

3 years ago

"The Internet of everything (IOE) has created a lot of excitement in the business community. What evidence could you present to

joja [24]

Answer:

Yes, the Internet of everything (IOE) has created a lot of excitement in the business community.

Explanation:

IOT has come to revolutionalized our life in many ramifications. It is regarded as the best and fastest means of connecting to the people as well as machines around world. It effect ranging from Aviation, Education, Health Care Services, and so on. Business operation have witnessed significant improvement in the sense that things get done over the Internet easily. One buy and sell, services such as consultancy are rendered over the Internet.

Example

The example is Telecom Industry.

It effect could be seen in communication, is those days where there was no internet, mail or letter are delivered taking longer period and sometime may even get loss but with Telecommunications, introduction of e-mail come where letters is being delivered within seconds.

6 0

3 years ago

The nation itself with all its so called internal improvements meaning

vaieri [72.5K]

<span>Meaning our boundaries are ever-changing, defined by society, we don’t know what will happen next "so-called improvements" are only superficial, it's only a distraction, distracts oneself from the truth. The Society is unwieldy and overgrown, ruined by luxury and heedless expenses. </span>

8 0

3 years ago

Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the eco

viva [34]

Answer:

Y = 300

government multiplier 2

output demanded increase by 20

If income tax is applied:

Y = 272.72

multipliers: 2.253775

increase 22.53775 billons

As disclosure it has a larget effect when the income tax is levied based on income rather than a flat rate.

Explanation:

DI = Y - 100

C = 30 + 0.6(Y - 100)

C = 30 - 60 + 0.6Y

C = 0.6Y - 30

Y = C + G + I

Y = (0.6Y -30) + 120 + 30

Y = 120 / 0.4 = 300

C = (0.6)300 - 30 = 150

With C we solve for the multiplier:

150/300 = 0.5

1 / (1 - 0.5) = 2

10 x 2 = 20

If variable that:

C = 30 + 0.6 (0.75Y)

C = 30 + 0.45Y

Y = 0.45Y + 120 + 30

Y = 150/.55 = 272,72

C = 30 + 0.45Y = 152,72

Propensitivity to consume:

152.72/272.72 = 0,5563

multiplier:

1 (1 - PMC) = 2.253775073

10 nillon will icnrease x 2.25377 = 22.54 billons

8 0

3 years ago