Answer:
$1,490
Explanation:
Interest expense is tax deductible in the computation of after tax cost. Therefore, Jim will enjoy tax-induced saving on the $1,700 interest portion of his monthly house payment.
Tax saving on the interest payment is computed as follows:
$1,700 * 30% tax rate = $510.
Therefore, after-tax cost of Jim's house payment
= total monthly payment, less tax saving on interest
= $2,000 - $510
= $1,490.
Answer: consume both products at the same rate as before his inheritance.
Explanation: Seppo is a rational spender. This means that although Seppo has more money to spend on brandy and saunas, Seppo will only spend money on what Seppo needs. Seppo's inheritance will not change the amount of hours that are available in a day. Seppo will still only have 6 hours to spend, and will consume the products based on the amount of time Seppo has, instead of the extra cash Seppo can spend on these products. This means that although Seppo has more money, Seppo will still consume the same amount of products as before, as Seppo is a rational consumer who likes to weigh rational consumption choices.
Answer: The sum of cash, short-term investments and net receivables divided by current liabilities
Explanation: The acid test ratio, also known as the quick ratio, is a liquidity ratio that is used to determine the ability of a company to pay its current liabilities if it rises immediately. It is considered to be more stringent ratio than the current ratio.
It is concluded by dividing those current assets that can be converted into cash immediately with the current liabilities of the company.
Therefore, from the above we can conclude that the correct statement is D.
Answer: The answer is provided below
Explanation:
a. When the quantity supplied of a particular crop reduces, it will affect the farmer's revenue but this can still be beneficial to the farmer provided these conditions prevails:
• If demand for the crop rises more than its fall in supply, this will lead to a rise in the and price of the crop. Hence, there will also be an increase in the revenue of the farmer and the farmer will try to adjust output and sell at higher prices. Therefore, the excess demand can off set a fall in the supply.
b. We know that the supply of a crop is limited. For example, let's assume that the crop is rice. Now the situation is that people are demanding more beans maybe as a result of festive season. Therefore, everyone will want to purchase rice which will lead to an increase in the price of rice due to excess demand.
The farmer will try as much as possible to maximise profit and will therefore sell the rice at higher price to those that wants to buy. Therefore, it's clear that the farmer can still benefit, even if his supply is limited, but the demand must be greater than its decline in supply.
The rate of return being offered by banks on money market accounts is 3% and increasing. the situation might happen to this case is the federal reserve increase fund rate and therefore the overall rates of the economy.
hope this help
