Answer:
The capitalized cost is $ 84,667.20
Explanation:
First of all please note that the cost of $ 75,000 is already the present cost.
The cost of $3200 which occurs every 3 years can be converted into a value using factor A/F for one life cycle.
The capitalized cost then can be calculated as follows
:
CC = $ 75,000 + $ 3200(A/F, 10%, 3 years)/interest
CC = $ 75,000 + $ 3,200(0.3021)/0.1
CC = $ 75,000 + $ 9,667.2
CC = $ 84,667.20
If the required reserve ratio is 2.50 percent, the monetary multiplier is 40.
The money multiplier gives us the ratio of deposits to reserves (i.e. 1/R). That means, if the reserve ratio is 2.50% (i.e. 0.025), the money multiplier is 40 (i.e. 1/0.025). Thus, an initial deposit of USD 1,000 will end up creating a total of USD 40,000 in new money.
If the monetary multiplier is 5, the required reserve ratio is 20%.
Playing with the original multiplier formula, we can derive that R=1/m (m is money multiplier). If the money multiplier is 5, then the reserve ratio is 20% (i.e. 1/5 or 0.20).
Answer:
fiscal policies
Explanation:
Fiscal policy refers to the way that the government modifies its total spending and tax rates in order to guide the nation's economy. Fiscal policies work together with monetary policies (regulation of money supply) as a government attempt to influence the economic cycle. When the government implements an expansionary fiscal policy(increase spending and decrease taxes) it will attempt to boost economic growth.
The worlds most largest national economy in nominal terms. Is the second largest in purchasing power parity (ppp).
representing 22 percent of nominal global gpd and 17 percent of gross world product (gwd)
