The pair of items that is most likely to have a negative cross-price elasticity of demand is

Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $120,000 in eighteen ye

dezoksy [38]

Answer:

$4,265.55

Explanation:

Future value = $120,000

Interest rate (i) = 5%

Annual deposit = ?

Time period (n) = 18 year

Since deposit are to be made at the beginning of each year, hence the relevant factor table to be used is future value annuity due factor table.

Future value = Annual deposit x future value annuity due factor (i%, n)

120,000 = Annual deposit x FVADF (5%, 18period)

120,000 = Annual deposit x 28.13238

Annual deposit = 120,000/28.13238

=$4,265.547

=$4,265.55

4 0

4 years ago

If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:

AlekseyPX

The question is incomplete. The complete question is stated below.

If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:

a. $400 increase in consumption spending

b. $75 increase in consumption spending

c. $425 increase in personal saving

d. $75 increase in personal saving

Answer:

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving. Thus, option D is the correct answer.

Explanation:

The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. It is a concept that is used to calculate how much of an increase in income will be used in consumption and saving. The formula to calculate MPC is,

MPC = Change in consumer spending / Change in income

0.85 = Change in consumer spending / 500

500 * 0.85 = Change in consumer spending

Change in consumer spending = $425

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving.

8 0

3 years ago

Anthony Roofing's budgeted manufacturing costs for 50,000 squares of shingles are: Fixed manufacturing costs $30,000 Variable ma

liberstina [14]

Answer:

Total budgeted manufacturing cost = $824,000

Explanation:

The total budgeted manufacturing cost is the sum of the variable and fixed manufacturing cost

The fixed manufacturing cost of $30,000 would be absorbed (i.e charged to the units produced using overhead absorption rate (OAR).

OAR = Budgeted fixed manufacturing cost / Budgeted production squares

= $30,000 / 50,000 squares = $0.6 per square

Absorbed fixed manufacturing cost= OAR × actual production of squares

Absorbed fixed manufacturing cost= $0.6 × 40,000 = $24,000

Variable manufacturing cost = $20.00 × 40,000 =800,000

Total budgeted manufacturing cost = $24,000 + $800,000 = $824,000

Total budgeted manufacturing cost = $824,000

5 0

3 years ago

A classified balance sheet can be described as a balance sheet that: (Check all that apply.) Multiple select question. is more u

telo118 [61]

Answer: 1) organizes assets and liabilities into important subgroups 2) is more useful to decision makers 3) lists current assets in order of how quickly they can be converted to cash

Explanation: see image

4 0

3 years ago

What is an example of a savings and loans bank?

tatyana61 [14]

Answer:

Savings and loan institutions–also referred to as S&Ls, thrift banks, savings banks, or savings institutions–provide many of the same services to customers as commercial banks, including deposits, loans, mortgages, checks, and debit cards.

Explanation:

hope this helps if it doesnt then im sorry

8 0

3 years ago