When you buy a car, you own the car when you finish paying. Leasing is when you rent it.
Answer:
The annual rate of return of the invesment will be -14,97%
Explanation:
The initial investment is 45.000 and after 5 years the value of the investment is only 20.000. Here we can see a destruction of value (20.000 < 45.000). In finance, the time takes an essential part in calculation, so through the interest rate we calculated how bad was the investment in annual terms. The formula is as follows: Final investment value=(Initial investment*(1+interest rate)^(total years)) in our case would be: 20.000=(45.000*(1+interest rate)^(5)) From this formula we got -14,97%
If Jamie would like to compare one savings account to
another savings account, and that he compares the amount of the interest he
will earn in one year in each account, it is likely that he is demonstrating
the annual percentage yield. This is where the annual rate return exist in
which the effect of copound interest is being taken into account.
hope this helps
The marginal productivity of the first hour of studying is 15%.
<h3><u>
What is Marginal Productivity?</u></h3>
- The additional output, return, or profit generated per unit as a result of benefits from production inputs is referred to as marginal productivity or marginal product.
- Raw materials and labor are examples of inputs. According to the rule of decreasing marginal returns, the marginal productivity will normally decrease as production rises when a production element is improved.
- This indicates that for every extra unit of output produced, the cost advantage often decreases.
- Diminishing marginal productivity is often recognized in its most straightforward form when a single input variable exhibits a drop in input cost.
- For instance, a reduction in labor expenses during the car-manufacturing process would result in slight increases in profitability per vehicle.
Formula for Marginal Productivity = (Qn – Qn-1) / (Ln – Ln-1)
The total product value is divided by the difference in labor to determine the marginal product of labor.
Know more about Marginal Productivity with the help of the given link:
brainly.com/question/13623353
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Answer:
Which party to the exchange must pay boot to make the exchange work?
- Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.
How much boot must be paid?
- $90,000 - $77,500 = $12,500
Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?
- Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500
Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?
- Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.
