Answer:
. A good whose demand decreases when income decreases
Explanation:
A normal good is a product whose demand increases as consumers' income increases. The demand may also increase as economic conditions in the country improve. Similarly, when income decrease, the demand also declines.
As people income increase, the purchasing power increase. They prefer more costly goods than give them more satisfaction. Increased income tends to make consumers abandon goods that offer less utility. Normal goods tend to be associated with customers in high-income.
Answer:
10,064 bonds
Explanation:
Given:
Amount to be raised = $2,800,000
Par value (FV) = $1,000
Maturity (nper) = 20×2 = 40 periods
Yield (rate) = 6.49 ÷ 2 = 3.245% or 0.03245
Coupon payment is 0 as it's a zero coupon bond.
Assume it's compounded semi-annually.
Calculate the price of the bond today using spreadsheet function =PV(rate,nper,pmt,FV)
Price of bond is $278.23
PV is negative as it's a cash outflow.
Number of bonds to be sold = Total amount to be raised ÷ Price of bond
= 2,800,000 ÷ 278.23
= 10,064 bonds
Company should sell 10,064 bonds to raise $2.8 million
Answer:
$ 2,209,797.96
Explanation:
Given:
Salary = $100,000
Salary investment rate = 13%
Salary increase rate(g) = 5%
number of year = 25
Annual rate of return(i) = 11%
Calculation:
Salary invested = $100,000*13% = $13,000
calculation of present worth
![P=A[\frac{1-(1+g)^n(1+i)^{-n}}{i-g}] \\P=13000[\frac{1-(1+0.05)^{25}(1+0.11)^{-25}}{0.11-0.05}] \\P=13000[\frac{1-(1.05)^{25}(1.11)^{-25}}{0.06}] \\P=13000[\frac{1-(3.386354)(0.073608086)}{0.06}]\\\\P=13000[\frac{1-0.249263}{0.06}]\\\\ P=13000[12.5122827]\\\\\\P= 162,659.675](https://tex.z-dn.net/?f=P%3DA%5B%5Cfrac%7B1-%281%2Bg%29%5En%281%2Bi%29%5E%7B-n%7D%7D%7Bi-g%7D%5D%20%5C%5CP%3D13000%5B%5Cfrac%7B1-%281%2B0.05%29%5E%7B25%7D%281%2B0.11%29%5E%7B-25%7D%7D%7B0.11-0.05%7D%5D%20%5C%5CP%3D13000%5B%5Cfrac%7B1-%281.05%29%5E%7B25%7D%281.11%29%5E%7B-25%7D%7D%7B0.06%7D%5D%20%5C%5CP%3D13000%5B%5Cfrac%7B1-%283.386354%29%280.073608086%29%7D%7B0.06%7D%5D%5C%5C%5C%5CP%3D13000%5B%5Cfrac%7B1-0.249263%7D%7B0.06%7D%5D%5C%5C%5C%5C%20P%3D13000%5B12.5122827%5D%5C%5C%5C%5C%5C%5CP%3D%20162%2C659.675)
THE PURCHASING MANAGER is the one who is responsible for the material price variance because he is the one in charge of buying materials that are needed for production at competitive prices. THE PRODUCTION MANAGER AND THE SUPERVISORS are the one who is responsible for the material quantity variance and the labor efficiency variance.
Answer:
$0
Explanation:
Alfred paid in premiums = $18,300
company paid Alfred = $125,000
Alfred died after 18 months, then,
Company collected the face amount of the policy = $150,000
Sale of policy = [ company compensation - premium paid]
= $125,000 - $18,300
= $106,700
In this situation, Alfred receives the submission price from the insurance company consequential in profit.
There is no gain in the income of the insurance policy that is purchased by the Alfred for the long term.
That's why he is not required to include the amount of sale of policy i.e. $106,700.
Hence, Alfred required to include in his gross income will be zero ($0).
