Answer:
A) We need to determine the n in the following equation: FV = PV (1 + r)ⁿ
r = 9% ; FV = 32,000 ; PV = 18,000
32,000 = 18,000 (1.09ⁿ)
32,000 / 18,000 = 1.09ⁿ
1.7778 = 1.09ⁿ
n = (log 1.7778) / (log 1.09) = 6.68 years
B) FV = 18,000 (1.09⁹°⁷⁵) = 18,000 x 2.32 = $41,704
C) if r = 4% ; FV = 32,000 ; PV = 18,000
n = (log 1.7778) / (log 1.04) = 14.67 years
if r = 12% ; FV = 32,000 ; PV = 18,000
n = (log 1.7778) / (log 1.12) = 5.08 years
D) The higher the interest rate, the shorter it takes for money to grow to a certain amount. The higher the interest rate, the more money you will have after a certain amount of years.
Answer:
True
Explanation:
Protectionism refers to barrier on import products by restricting products from the foreign market. it can be achieved by putting heavy taxes on imports or implying strict regulation on import products.
it is not a fixed approach it is done when a country decides to go strong in the manufacturing field or want to strengthen its domestic industries by giving subsidy for setting up industries.
They caused the government to have a bigger deficit.
Answer: Option B.
<u>Explanation:</u>
Congress instituted significant tax reductions in 2001, 2002, and 2003. The demonstrations diminished negligible personal assessment rates; decreased charges on wedded couples, profits, capital additions, and on domains and endowments; expanded the youngster charge credit; and quickened devaluation for business speculation.
A 2006 Treasury Department study evaluated that the Bush tax breaks decreased income by around 1.5% GDP on normal for every one of the initial four years of their usage, a roughly 6% yearly decrease in income comparative with a pattern without those tax reductions.
Answer:
1) Colt Carriage Company
Income Statement
For the month ended April 202x
Revenues:
- Adults passengers $186,300
- Children $81,000
- Total revenues $267,300
Variable costs:
- City fees $26,730
- Souvenirs $7,425
- Brokerage fees $11,340
- Carriage drivers $52,650
- Total variable costs <u>$98,145</u>
Contribution margin $169,155
Period costs:
- Depreciation $2,900
- Horse leases $48,000
- Marketing expenses $7,350
- Payroll expenses $7,600
- Total period costs <u>$65,850</u>
Operating profit $103,305
2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.
Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.
Explanation:
since the information is not complete, I looked it up:
Revenues
13,500 passengers:
8,100 x $23 = $186,300
5,400 x $15 = $81,000
total $267,300
variable costs:
fees paid to the city 10% of total revenue
souvenirs $0.55 per passenger
brokerage fees 60% of total tickets x $1.40
carriage drivers $3.90 per passenger
fixed costs:
depreciation $2,900
horse leases $48,000
marketing expenses $7,350
payroll expenses $7,600
Answer:
True
Explanation:
An auction is defined as a public sale of properties that considers bids from prospective buyers.
The highest bidder eventually makes the purchase.
The auctioneer calls for bids and when there is an unchallenged bid he pounds the gavel to indicate the item has been sold.
The auctioneer is the seller himself of am agent representing him.
At the start of the auction the seller sets a minimum price before bidding commences