Answer:
The answers are:
- The CPI for 2009 is 100 (since it is the base year)
- The CPI for 2010 is 129.17
- The inflation rate for 2010 is 29.17%
Explanation:
<u>CPI basket for 2009</u>
- 6 razors x $20 per razor = $120
- 4 bottles of cologne x $30 per bottle = $120
The total value of the CPI basket for 2009 is $240
<u>CPI basket for 2010</u>
- 6 razors x $25 per razor = $150
- 4 bottles of cologne x $40 per bottle = $160
The total value of the CPI basket for 2010 is $310
- The CPI for 2009 is 100, since it is the base year
- The CPI for 2010 = (CPI basket 2010 / CPI basket 2009) x 100 = ($310 / $240) x 100 = 129.17
- The inflation rate for 2010 = [(CPI basket 2010 / CPI basket 2009) - 1] x 100 = (1.2917 - 1) x 100% = 29.17%
Answer:
That statement is true
Explanation:
In order to conduct a total cost analysis, a company need to calculate every single relevant cost that occurs within an operation or project from start to finish. From this, the company usually can find out about hidden costs that might occurs outside the initial plan.
The decision makers can use this options to make their decision in the future. If the total hidden cost is larger than ideal, they can either implement a new budgeting plan or implement policies that minimize the hidden cost.
The inflation rate formula is ( CPI2 - CPI1 )
-------------------- x100
CPI1
CPI2 = Price of the latter date
CPI1 = Price of the earlier date
So the latter price is $32.7 and the earlier is $32 (I'm assuming you mean the inflation from January to February)
Then plug in the numbers ( 32.7 - 32 )
---------------- x100
32
32.7 - 32 = .7/32 = .021875 x 100 = 2.1875
Which means the answer would be if you round 2.2%
Answer:
b. Establish the most probable price that would be paid for a property under competitive market conditions
Explanation:
Property appraisal is the process by which real estate property value is estimated. It is an opinion by the appraiser of the value of a property at a particular period and in a particular market.
Real estate do not tend to be identical as such different properties will have different appraisal value.
Buyers can use property appraisal as a guide when paying for a property so that they can get get the most competitive price.
Answer:
Option (c) is correct.
Explanation:
Interest expense on Nov 30, 2016:
= (Purchase amount × Rate of interest) ÷ No. of months in a year
= ($288,000 × 12%) ÷ 12
= $2,880
Principal repayment on Nov 30, 2016:
= Monthly payment - Interest expense on Nov 30, 2016
= $25,588 - $2,880
= $22,708
Interest expense on Dec 31,2016:
= (Purchase amount - Principal repayment) × Rate of interest] ÷ No. of months in a year
= ($288,000 - $22,708) × 12%] ÷ 12
= $2,653
Therefore,
Interest expense for the year ended December 31, 2016:
= Interest expense on Nov 30, 2016 + Interest expense on Dec 31,2016
= $2,880 + $2,653
= $5,533
