Answer:
Explanation:
The formula to be used in calculation is FV = PV*(1+I)^n
FV - Future value at the end of periods
PV - Present value
r - interest rate
n - number of years
a. The amount due f the loan is repaid at the end of year 1
FV = 200*(1+0.14)^1 = 200*0.14 = $228
b. Repayment at the end of year 4
FV = 200*(1+0.14)^4 = 200* 1.6889 = $337.79
c. The amount due at the end of 8 year
FV = 200*(1+0.14)^8 = 200* 2.85 = $570.51
Answer:
The correct answer is option b.
Explanation:
An increase in government expenditure will have a smaller effect on the aggregate demand if the MPC is smaller. This happens because the consumers will save the major share of their income and not consume it if MPC is small.
This will not increase consumer spending as much as they should. And thus aggregate demand will increase by a small amount.
The change in aggregate demand will also be smaller if the investment is interest elastic. The government increases spending by borrowing from the loanable funds market.
This increases the demand for loanable funds. The interest rate, as a result, increases. This increase in interest rate makes borrowing costlier for private investors.
This further causes the investment expenditure to increase as much as it should. And thus aggregate demand will increase by a small amount as well.
Developed nations tend to have LIMITED LABOUR SUPPLIES BUT LOTS OF CAPITAL. There are two major types of labour; skilled and unskilled labour. Developed nations of the world generally have low supply of labour which are needed to carry out the required activities in the economy, but they usually have huge capital, that is why people from less developed nations migrate into these countries.
Answer:
a. Define the basic business functions that you need the software to be able to perform.
Explanation:
The main function of a business needs to be determined so that business strategy can be formulated. The office manager has made an agreement to spend up to $1000 on the new software. It is now required to determine the basic functions which are needed in the new software for business functioning.
Answer:
$7,300 loss
Explanation:
The computation of the net foreign exchange gain or loss included in the income statement is shown below:
Since the merchandise purchased value is $62,900
And, the paid amount is $53,200
So, the gain on transaction is
= $62,900 - $53,200
= $9,700
The borrowed amount is $305,000
And, the principal amount is $322,000
So, the loss is
= $305,000 - $322,000
= $17,000 loss
So in this case $7,300 loss is included which is a difference of $9,700 and $17,000
