Answer:
Douglas can afford 21697.88 to borrow to purchase a car.
Explanation:
As the formula for calculating present value is given as:
PV = PMT * ( (1-(1+r)^-n) / r )
As Douglas can afford 240$ a month for five years for a car loan so
it means that payment = 240
$
As the APR is 8.5% which means after dividing by 12 the rate per month = 8.5%/12
Total number of Months = 5*12
Total number of Months = 60
Putting these values into the above formula, we get
PV = PMT * ( (1-(1+r)^-n) / r )
PV = 240 * ( (1-(1+8.5%/12)^-60) / (8.5%/12) )
PV = 11697.88
As the down payment = 10,000 so the total value of car
= 11697.88+10000
= 21697.88
Douglas can afford 21697.88 to borrow to purchase a car.
I think it's C
I hope it helped you!
Answer:
PPF : Downward Sloping Straight Line
Explanation:
PPF is the locus of product combinations that an economy can produce, given resources & technology.
It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.
Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.
∆ Good sacrifised / ∆ Good gained
If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line
Eg : Good1 Good2 MOC [∆Good2/∆Good1]
0 20 _
10 10 -10/10 = -1 (10-20)/(10-0)
20 0 -10/10 = -1 (0-10)(/20-10)
So , same (1) good 2 is sacrifised to attain a good 1 each time.
However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.
Answer:
correct option is c. $1,364
Explanation:
given data
purchases house = $174,000
cost of the home = $100,000
cost of the land = $74,000
solution
we know that here MACRS depreciation deduction is here on the $100000
because home only residential real property
and land is not depreciated assets
so here depreciation rate is 1.364 %
so that maximum depreciation deduction allowed is = $100,000 × 1.364
maximum depreciation deduction allowed = 1364
so correct option is c. $1,364
