Answer:
Present Value= $240,000
Explanation:
Giving the following information:
Perpetuity= $12,000
Growing rate= 5%
Interest rate= 10%
To calculate the present value of this perpetual annuity, we need to use the following formula:
PV= Cf/ (i - g)
Cf= cash flow
i= interest rate
g= growing rate
PV= 12,000/ (0.10 - 0.05)
PV= $240,000
Answer:
Debit cash $7800
Credit unearned revenue $7800
Explanation:
The amount of $7800 was received in cash on October 1. Therefore, the cash account will be debited with the $7800 received.
The corresponding credit entry of $7800 will be to the unearned revenue account since the revenue has not been earned. Revenue will be earned at the end of each month of the lease. This account will subsequently debited each time the revenue is earned i.e at the end of each lease month.
Answer:
The correct answer is the first option: Democratic political decision-making can be counted on to improve the efficiency or resource allocation.
Explanation:
To begin with, in the microeconomics theory, when there are external costs it means that people external to the transaction or situation are being involved in it and therefore that they are getting costs for that particular situation that they did not asked for it. That is why that according to the microeconomics theory when there are external situations to the market, this last one may sometimes not be able to efficiently allocate every resource to everybody and it is in that time when the government as a public state must entry in order to try its best to find the efficiency in the distribution of the limited resources.
Answer: <em>Competition is an effect of scarcity.</em>
Explanation:
In economical and dismal sense scarcity and competition are correlated, as in they are directly proportional to each other. In today's era where, the population is growing at an exponential rate and the food supply and other resources are either growing at an arithmetical rate or depleting. Therefore there is a scarcity of resources and thus the competition is increasing proportionally.
Answer:
$100,000
Explanation:
In the case of joint life policy, the other person who is covered in the policy has the right to claim the amount after death of one person
In the given case, the husband has died after 8 years of purchasing the joint-life policy due to an automobile accident. So, the wife has the right to claim for the policy amount i.e $100,000. This claim is valid for the only first death