Answer:
Explanation:
For this case we can use present value calculation for an ordinary annuity in order to calculate the PMT each month.
The formula is given by:
(1)
Where:
PMT represent the monthly payment
PV represent the present value on this case 45300
i represent the discount rate and for this case we know that i =4.25 % = 0.0425
n represent the number of periods that the interest is compound in 1 year, we can assume that n =12 for this case
t represent the number of periods for which the annuity will last t= 10 years
If we solve for the PV from formula (1) we got:
(2)
And replacing the values we got:
And that would be the final answer for this case 464.042
Answer:
lost value compared to the German mark because inflation was lower in Germany
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
If inflation of the currency of a country increases relative to that of another country, the value of that currency decreases
Answer:
Cost incurred while running a restaurant:
Salary paid = $200,000 per year
Ingredients cost = $50,000 per year
Before running this restaurant, he was earning $150000 per year.
Here, we are using a concept called opportunity cost.
Opportunity cost refers to the benefit of a commodity that is forgone to produce one extra unit of some other commodity.
It is also refers to the value of next best alternative that is given up by choosing some other alternative.
In this question, opportunity cost of running a restaurant is the income that is earned when he was a lawyer, i.e, $1,50,000 per year. This is the income that is foregone when he started running a restaurant.
Answer:
<em>Shrinkage. </em>
Explanation:
<em>Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage, and cashier error. </em>