<span>Who is better off: a person using credit cards or a person refraining from any loans? A person using credit cards is better off </span>from a person refraining from any loans. A person using credit can often purchase more and have more flexibility with their money over someone who only uses cash. There are items and services that do not take cash as a form of payment, so without a credit card the person can not make the purchase.
Explanation:
A cost-of-living index is a theoretical price index that measures relative cost of living over time or regions. It is an index that measures differences in the price of goods and services, and allows for substitutions with other items as prices vary.
Answer:
The answer is D. The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power
Explanation:
Substitution effect is a concept in which, as the price of a good or service increases, less of the good or service is substituted for other less expensive.
For example, if the price of Pepsi were to rise, the substitution effect would cause the consumer to buy less of it and substitute more coca-cola for now relatively more expensive Pepsi.
Option A. is wrong because we are talking about the quantity demanded and not just demand. (Please take note).
Answer: $651,000
Explanation:
From the above question, Apple's iPod carries a two-year warranty against manufacturer's defects.
warranty costs are expected to be approximately 3% of sales.
Total sales are $30.7 million, and actual warranty expenditures are $270,000.
Total warranty cost = $30.7 million x 3% = $921,000
During the 1st year only $270,000 of warranty expenses was made.
Therefore the company will carry as liability at the end of the year a total of $921,000 - $270,000 = $651,000
Answer:
9.78%
Explanation:
The yield to maturity can be determined using the rate formula in excel as shown below:
=rate(nper,pmt,-pv,fv)
nper is number of times coupon interest would be paid,which is 12 years multiplied by 2(semi-annual interest payment) i.e 24
pmt is the semi-annual interest which is $1000*8%/2=$40
pv is the current price of the bond at $876.40
fv is the face value of the bond which is $1000
=rate(24,40,-876.40,1000)=4.89%
Semi-annual yield is 4.89%
Annual yield is 4.89%*2=9.78%
The yield to maturity on these bonds is approximately 9.78%
