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2 years ago

If a positive externality in consumption is present in a market, then

1 answer:

8 0

Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.

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7,500.00 is invested at an APR of 4.9% compounded semi annually (twice per year). Write a numerical expression that would comput

trasher [3.6K]

Answer:

Explanation:

13 years would be a time in the future hence you use future value formula.

Future value formula is FV = PV*(1+r)^n

r = interest rate; in this case it is the semiannual rate = 0.049/2 = 0.0245 as a decimal.

pv = principal amount invested = 7,500.00

Duration of investment; in this case, number of semi-annual periods = 13*2 = 26

The expression would be ; 7500(1.0245)^26

7 0

3 years ago

Which of the following does not appear on the asset side of a bank's balance sheet? Question 19 options: a) required reserves b)

tamaranim1 [39]

Answer: b) checkable deposits

Explanation:

Checkable Deposits are the deposits by customers into the bank. The bank uses these funds to make loans that it issues out to others. It is recorded as a liability on a Banks Balance sheet because it represents that the bank owes its customers.

6 0

2 years ago

When you take your first job, you decide to start saving right away for your retirement. You put $5,000 per year into a saving p

mafiozo [28]

Answer:

FV= $857,840.94

Explanation:

Giving the following information:

First investment:

Annual deposit= $5,000 per year

Interest rate= 10%

Number of years= 5

Second investment:

Number of years= 35

Interest rate= 10%

Lumpsum= first investment

First, we need to calculate the future value of the first investment. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*[(1.1^5) - 1]} / 0.10

FV= $30,525.5

Now, the future value of the second investment.

FV= PV*(1+i)^n

FV= 30,525.5*(1.1^35)

FV= $857,840.94

7 0

3 years ago

Oberholser, Inc., has an issue of preferred stock outstanding that pays a dividend of $3.15 every year in perpetuity. If this is

zepelin [54]

The required rate of return is $3.42%

<h3>What is Perpetuity?</h3>

A constant cash flow with indefinite period of time is called perpetuity. In this question a perpetual payment of dividend is being made. so the price of the share is calculated by the formula of perpetuity.

<u>Given:</u>

Present value of perpetuity = $92 per share

Cash flows = $3.15 every year

Rate of return can be calculated from the perpetuity formula

Present value of perpetuity = Cash flows / Required rate of return

$92 = $3.15 / Required rate of return

Required rate of return = $3.15 / $92

= 0.0342

= $ 3.42%

Therefore the Required return for Oberholser, Inc will be 3.42%.

Learn more about Required return on:

brainly.com/question/13941905

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6 0

1 year ago

Regarding generally accepted accounting principles (GAAP), which of the following statements is incorrect? A. Relevant informa

Lady_Fox [76]

Answer: The statement "A. Relevant information is complete, neutral, and free from error." is incorrect

Explanation: The generally accepted accounting principles are a set of rules and norms that serve as an accounting guide to formulate criteria related to the measurement of equity and to the information of the patrimonial and economic elements of an entity. While one of these 14 principles speaks of neutrality in none mentions that Relevant information is complete, neutral, and free from error

8 0

3 years ago