Answer:
Annual deposit = $1,661.497
Explanation:
This investment scheme been considered is known as sinking funds.
<em>A Sinking Fund involves saving a series of equal amount periodically invested at certain rate of interest to accumulate a target amount in the future.</em>
The amount to be deposited periodically can be determined as follows:
A= FV/ ((1+r)^(n) - 1)/n)
A- annual deposit, FV- future value - $12,500 r- 9%, n- 6
So we can apply this formula as follows:
A = 12,500/ (1.09^(6)-1)/0.09
A = $1,661.497
Answer:
Option (d) is correct.
Explanation:
When the supply of loanable funds increases and this change in loanable funds shifts the supply curve of loanable funds rightwards then as a result the equilibrium interest falls and the quantity of loanable funds increases.
In this situation, the supply of loanable funds exceeds the demand for loanable funds, so the financial institutions would provide funds at a lower interest rate to the borrowers.
Fall in the interest rate would induce borrowers to take loan at a cheaper rate.
Answer:
a surplus of middle seats and the equilibrium quantity of aisle seats.
Explanation:
Aisle seats are already preferred by people. So, increasing rate of middle seats will make people more attracted towards aisle seats. So, a surplus of middle seats and the equilibrium quantity of aisle seats.
Answer:
profit = $1,236
Explanation:
fixed daily costs $876
variable cost per room $13
revenue per room $79
contribution margin per room = $79 - $13 = $66
32 rooms were sold today = $66 x 32 = $2,112
- fixed costs = ($876)
daily profit = $1,236
The contribution margin per unit is the difference between the additional revenue obtained from selling one more unit minus the additional costs of selling that unit.
