Answer:
For Jerry, the opportunity cost of building a fence is not making 2 dishes.
Explanation:
The opportunity cost refers to the benefit you lose when you choose one option over another one. In this case, the opportunity cost for Jerry when he decides to build fences is that he won't be able to make dishes. So, as he can build 7 fences or make 14 dishes in a day, the opportunity cost of building a fence is that he won't be able to make 2 dishes.
Answer:
$24,000 gain
Explanation:
Dr Cash 3,120,000
Cr Bonds payable 3,000,000
Cr Premium on bonds payable 120,000
premium amortization per coupon = $120,000 / 20 periods = $6,000
a total of 11 coupons were paid = $6,000 x 11 = $66,000
carrying value of the bonds = $3,054,000
gain/loss on retirement of bonds = carrying value - retirement value = $3,054,000 - $3,030,000 = $24,000 gain
Answer: The gradient of income growth is $12,59,741.59. This means that income must rise by $12,59,741.59 each year.
We follow these steps to arrive at the answer:
<h3><u>1. Calculating the total value of earnings after 15 years</u></h3>
We calculate the Future Value of the investment as follows:
This represents the total of revenues earned over 15 years from the investment.
<h3><u>2.Calculating the gradient</u></h3>
Since income increases linearly over 15 years, we can consider year 3 earnings as the base. Let the income increase in year 4 by x. Since income increases yearly, we can calculate income in each year as follows
Year Revenues
1 0
2 0
3 250000
4 250000 + x
5 250000 + 2x
6 250000 + 3x
7 250000 +4x
8 250000 + 5x
9 250000 + 6x
10 250000 + 7x
11 250000 + 8x
12 250000 + 9x
13 250000 + 10x
14 250000 + 11x
15 <u> 250000 + 12x</u>
Total 32,50,000.00 + 78x
Now we equate the values in steps 1 and above to find 'x' the gradient
Answer:
False
Explanation:
A certificate of Deposit or CD is a deposit made into a bank for a specific time. This deposit will earn a fixed interest rate that varies upon the days the deposit is made of. The rule is: Longer the days of the deposit, longer the interest rate paid.