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Taya2010 [7]
3 years ago
6

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 20

12, the basket’s cost was $50; in 2014, the basket’s cost was $52; and in 2016, the basket’s cost was $55. The value of the CPI in 2016 was
Business
1 answer:
Evgesh-ka [11]3 years ago
8 0

Answer: 2016 CPI is 110

Explanation:

Given the following :

Base year = 2012

Cost of basket in 2012 = $50

Cost of basket in 2014 = $52

Coat of basket in 2016 = $55

The Consumer Price Index (CPI) is calculated using the formula :

CPI = (weighted cost item in current period / weighted cost of item in base period) × 100

Base period / year = 2012

Current period = 2016

Therefore, 2016 CPI equals;

($55 / $50) × 100

= 110

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The rate of return required by investors in the market for owning a bond is called the:_______
VashaNatasha [74]

The rate of return required by investors in the market for owning a bond is called the <u>Yield to </u><u>maturity</u>

A bond's coupon rate is the rate it pays each year, and yield is the return it makes. A bond's coupon is expressed as a percentage of its face value. Face value is simply the face value of the bond or the value of the bond as quoted by the issuer.

A bond's current yield is the annual income from the investment, including interest and dividend payments, divided by the security's current price. Yield to maturity (YTM) is the expected total return from holding a bond to maturity.

The current yield is the annual rate of return on investment (interest or dividend) divided by the security's current price. This indicator looks at the current price of a bond rather than its face value.

Learn more about maturity here brainly.com/question/26376004

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6 0
2 years ago
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $5,300. On September 9, the custom
Andreyy89

Answer:

The cash collection on September 9 is records by the entry:

Debit Cash $5,300

Credit Accounts Receivable $5,300

Explanation:

Barnes Books allows for possible bad debts. On May 7, the company writes off a customer account. The journal entry:

Debit Allowance for Doubtful Accounts $5,300

Credit Accounts Receivable $5,300

On September 9, the customer unexpectedly pays the $5,300 balance. The journal entries:

1. Debit Accounts Receivable $5,300

Credit Allowance for Doubtful Accounts $5,300

2. Debit Cash $5,300

Credit Accounts Receivable $5,300

3 0
3 years ago
The following data concerns a proposed equipment purchase: Cost$144,000 Salvage value$4,000 Estimated useful life 4years Annual
ycow [4]

Answer: $74,000

Explanation:

The Average Investment refers to the average cash invested into a particular project and is useful in calculating the rate of return. The simple formula is to add the beginning value of the asset to its ending value and divide this by 2.

The ending value in this case would be the salvage value;

Average Investment = \frac{Beginning Cost of Machine + Salvage Value}{2}

= \frac{144,000 + 4,000}{2}

= $74,000

8 0
3 years ago
The total cost analysis demonstrates how other costs besides the unit cost can affect purchase decisions. True False
zvonat [6]

Answer:

That statement is true

Explanation:

In order to conduct a total cost analysis, a company need to calculate every single relevant cost that occurs within  an operation  or project from start to finish. From this, the company usually can find out about hidden costs that might occurs outside the initial plan.

The decision makers can use this options to make their decision in the future. If the total hidden cost is larger than ideal, they can either implement a new budgeting plan or implement policies that minimize the hidden cost.

8 0
3 years ago
Why does economics exist?
aleksley [76]

deals with the production, distribution, and consumption of goods and services.

6 0
3 years ago
Read 2 more answers
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