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Molodets [167]
3 years ago
14

In​ 1885, first-class postage for a​ one-ounce letter cost​ $0.02. The same postage in 2015 costs​ $0.49. What compounded annual

increase in the cost of​ first-class postage has been experienced over this period of​ time?
Business
1 answer:
geniusboy [140]3 years ago
6 0

Answer:

2.49%

Explanation:

The period 't' between 2015 and 1885 is:

t = 2015 -1885 = 130\ years

The annual rate 'r' at which the original $0.02 value has been compounded over 130 years to reach a value of $0.49 is determined by:

0.49 = 0.02*(1+r)^{130}\\r=\sqrt[130]{24.5}-1\\ r=0.0249 = 2.49\%

The cost of​ first-class postage has experienced an annual increase of 2.49% over this period.

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Suppose that the government imposes a​ $2 a cup tax on coffee. The rise in the price of a Starbucks coffee will be​ ______, coff
Scrat [10]

Answer:

increase, decrease

Explanation:

In simple words, when the tax was imposed on the product the company will ultimately bear it to the final consumer which means the price will rise. However when the price of the product rises the demand for that product decreases due to the fact that many individuals would not be able to buy it now from their limited income, this phenomenon is called price elasticity due to income.

5 0
3 years ago
On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment bu
Maslowich

Answer:

$27,540

Explanation:

Expected amount = Possible amount into probability

Expected amount = ($54,000*80%) + ($54,000+10%)*20%

Expected amount = $43,200 + ($54,000+$5,400)*20%

Expected amount = $43,200 + $59,400*20%

Expected amount = $43,200 + $11,880

Expected amount = $55,080

Revenue to be recognized on this contract in 2021 = $55,080 * 6/12 = $27,540.

8 0
3 years ago
Endotrope Corporation has an after-tax operating income of $3,200,000 and a 9% weighted-average cost of capital. Assets total $7
s344n2d4d5 [400]

Answer:

B. $2,732,000.

Explanation:

After-tax operating income (ATI) = $3,200,000

Weighted-average cost of capital (WA) = 9%

Assets (A) = $7,000,000

Liabilities (L) = $1,800,000

Economic value added (EVA) is given by:

EVA = ATI -[(A-L)*WA]\\EVA = \$3,200,000 - [(\$7,000,000-\$1,800,000)*0.09]\\EVA = \$2,732,000

Endotrope's economic value added is $2,732,000

5 0
3 years ago
Why are import and export two terms that are often involved in conversations about international trade or channel management? Ev
Cloud [144]

Answer:International trade deals within countries, while channel management is a form of trade that could be within the country or outside but seeking the best form or place for the market

Explanation:

International trade is the situation where two countries do business, either long distance buying(importing) or one is selling(exporting).

While Channel management is a technique for choosing the most efficient channels to sale or market your goods and making good profit or deriving the best result from those channel chosen.

Knowing the difference between the two terms is important so you can understand where best your market is appreciated and where best to avoid selling to.

International trade deals within countries, while channel management is a form of trade that could be within the country or outside but seeking the best form or place for the market

4 0
3 years ago
Compute the present value of $1,150 paid in three years using the following discount rates: 6 percent in the first year, 7 perce
blagie [28]

Answer:

$938.82

Explanation:

The present value of the amount $1,150 using different discount rates in year one, two and three shall be determined using following mentioned method:

Present value of $1150 at the end of year 2=$1,150(1+8%)^-1=$1064.81

Present value of $1150 at the end of year 1=$1064.81(1+7%)^-1=

Present value of $1150 at the end of year 0=$995.15(1+6%)^-1=$938.82

5 0
4 years ago
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