Answer:
The correct answer is option c.
Explanation:
The nominal interest rate was 5 percent.
The CPI was 150.3 at the end of the year, and the CPI was 144.2 at the beginning of the year.
The 5% nominal interest rate means that the dollar value of savings increased at 5%.
Inflation rate
= 
= 0.0423 or 4.2%
The real interest rate
= Nominal interest rate - rate of inflation
= 5 - 4.2
= 0.8%
The real interest rate of 0.8% indicates that the purchasing power of savings increased at 0.8%.
Answer:
Explicit costs - $51,000
Explicit costs are those for which a person incurs in actual spending of money. In this case, Christine had to pay $15,000 in wages, and $36,000 in rent ($3,000 x 12). These are expenses that she had to pay money for, and that had to be accounted for in the accounting books, and in the financial statements. These are in other words, explicit costs.
Implicit costs - $40,000
Implicit costs are simply the opportunity costs. An opportunity cost is the cost of the next more valuable alternative when faced with two or more options. No money is paid for this costs. The implicit costs for Christine were the $40,000 that she not receive as wages if she had continued working at a real state firm.
Answer:
monthly payment = $10,009 (rounded to nearest dollar)
Explanation:
A 3/1 adjustable rate mortgage (ARM) means that the monthly payment will be fixed during the first 3 years only. Then they should vary, although the variance is generally upwards. The monthly interest can be calculated by using the present value of an annuity formula:
monthly payment = present value of the loan / annuity factor
- present value of the loan = $2,225,000 x 85% = $1,891,250
- PV annuity factor, 0.40625%, 360 periods = 188.9615
monthly payment = $1,891,250 / 188.9615 = $10,008.65256 ≈ $10,009
Answer:
total net income = $109,000
Explanation:
given data
Blake receive = $103,000
Matthew capital account is credited = $3,000
solution
we know that both partner get equal part in remaining loss or income
so here Blake get $3,000 as share of the net income
so that here net income for the period, that will Blake's salary allowance + amount shared in both persons of net income
as that
total net income = $103,000 + $3,000 +$3,000
total net income = $109,000
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