Answer: 0.70; 0.30
Explanation:
Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.
Increase in income = $3,000
Increase in spending = $2,100
Increase in savings = $3,000 - $2,100 = $900
MPC = $2,100/$3,000
= 0.70
MPS = $900/$3,000
= 0.30
Answer:
So you can be prepared to handle future responsibilities about finances.
Explanation:
One prime example would be when you go to college you need to make decisions whether to keep the money or give it away for some fragile reasons/needs. Maintaining a checking account instills the habit to grow & safeguard the savings you might make working after school. Just my two cents! :)
Answer:
FV= $126,585.60
Explanation:
Giving the following information:
Monthly deposit (A)= $1,721
Interest rate (i)= 0.08/12= 0.0067
Number of periods (n)= 12*5= 60 months
<u>To calculate the future value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,721*[(1.0067^60) - 1]} / 0.0067
FV= $126,585.60
Answer:
True
Explanation:
The capital structure is defined as the careful balancing between the equity and the debt that the entity uses to finance its assets, day-to-day operations, and future growth. It combines debt and equity. Debt comes in the form of bond issues or loans, while equity may come in the form of common stock, preferred stock, or retained earnings. The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) of a company while maximizing its market value. However, in calculating the WACC and evaluating the capital investment, the timing of the capital inflow is not considered.
Answer:
$125,000
Explanation:
Given that,
Variable manufacturing overhead rate = $5.00 per direct labor hour
Budgeted direct labor cost = $20 per hour
Total budgeted fixed overhead = $25,000 per month
Total budgeted direct labor hours = 20,000
Total budgeted manufacturing overhead for July:
= Variable manufacturing overhead + Fixed manufacturing overhead
= (Budgeted direct labor hours × Variable overhead rate) + $25,000
= (20,000 × $5) + $25,000
= $100,000 + $25,000
= $125,000
