Answer:
When PED is greater than one, demand is elastic. This can be interpreted as consumers being very sensitive to changes in price: a 1% increase in price will lead to a drop in quantity demanded of more than 1%. When PED is less than one, demand is inelastic.
so it is true
Explanation:
Answer:
A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentage ownership of partnership profits in order to meet the substantial economic effect tests.
True
Explanation:
Equity and equality must be put in place as a yardstick to allocate such which would bring a common ground for both parties.
Answer: 2.72%
Explanation:
An annuity is a series of payments that is made at equal intervals. Examples are monthly home mortgage payments, regular deposits to a savings account, pension payments.
Number of payment period (NPER) = 12 years
Payment per period (PMT) = $15000
Amount needed, PV = $156000
The formula for an annuity is calculated as:
P = PMT x ((1 – (1 / (1 + r) ^ -n)) / r)
= Rate(12,15000,-156000,1)
Rate = 2.72%
