Answer:
The correct answer is option (a).
Explanation:
According to the scenario, the given data are as follows:
Purchase Bonds = 60
Purchased bonds value = $60,000
So Purchased value of 30 bonds = $60,000 ÷ 2 = $30,000
Sold 30 bonds at value = $32,000
So, we can calculate the gain on sale by using following formula:
Gain on sale = Sold 30 bonds at value - Purchased value of 30 bonds
By putting the value, we get
= $32,000 - $30,000
= $2,000
Answer:
The answer is $8,030
Explanation:
Present Value (PV) = $5,000
Future Value(FV) = ?
Interest rate(r) = 7 percent
Number of years (N) = 7 years
The formula for future value is:
FV = PV(1+ r)^n
= $5,000(1+0.07)^7
$5,000(1.07)^7
$5,000 x 1.605781476
=$8,028.91
Approximately $8,030
Alternatively, we can use a Financial calculator:
N= 7; I/Y= 7, PV= -5,000 CPT FV= $8,028.91
Approximately $8,030
Answer:
On or before April 15, year 2.
Explanation:
Answer:
b. diminishing returns to specialization.
Explanation:
Diminishing returns is also called diminishing productivity. It states that as additional unit of input is used in production it will get to a stage where more of input will be required to maintain output levels.
If the same level of input is used it will result in reduction in output over time.
This is exemplified in this secanrio where it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons.
It takes more input to increase output by 1 ton
