The paper companies are the ones responsible. Either in chile or overseas in the uS
The yearly rate of inflation in car prices over the 8 years that Dave bought his new car for $8,400 is <u>5.1%</u>.
<h3>What is inflation?</h3>
Inflation is the general increase in prices of goods and services in an economy which reduces the purchasing power of the consumers.
Based on the given information, the yearly increase in the inflation rate can be computed using the present value formula from an online finance calculator as below.
<h3>Data and Calculations:</h3>
N (# of periods) = 8 years
I/Y (Interest per year) = 5.1%
PMT (Periodic Payment) = $0
FV (Future Value) = $12,500
<u>Results:</u>
PV = 8,396.31 or $8,400
Total Interest $4,477.49
Thus, the yearly rate of inflation in car prices over the 8 years that Dave bought his new car for $8,400 is <u>5.1%</u>.
Learn more about inflation at brainly.com/question/8149429
Answer:
Difference= $1,000 increase
Explanation:
Giving the following information:
Selling price per unit: $30
Variable expenses per unit: $21
New selling price= 30 - 2= $28
New units sales= 13,000
<u>First, we need to calculate the current contribution margin:</u>
Total contribution margin= units sold*unitary contribution margin
Total contribution margin= 10,000*(30 - 21)
Total contribution margin= $90,000
<u>Now, the new contribution margin:</u>
Total contribution margin= 13,000*(28 - 21)
Total contribution margin= $91,000