Answer:
Giancarlo’s initial investment in the Suzuki XL7 is $17,122
Explanation:
The computation of the initial investment is shown below:
= Negotiated price of new Suzuki + Taxes and fees charges on purchase of a new car - proceeds from the old car
= $24,675 + $1,732 - $9,285
= $17,122
The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.
Answer:
<u>will</u>, <u>would like </u>
Explanation:
Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.
The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.
Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.
When coupon rate of payment is higher than YTM, such bonds are priced at a premium.
Answer:
Increase; fall
Explanation:
Due to the slightly above normal rainfall levels which led to a large black morel harvest, <em>the supply of the commodity will increase</em>.
However, since demand for the commodity is expected to remain the same as it was in 2007 despite the increase in supply, <em>the equilibrium price is expected to fall</em> as supply exceeds demand.
Answer:
According to the economists, the resources are scarce and human wants are unlimited. So, it is difficult to satisfy each and every want of people. But according to the theory of abundance, we can overcome from this problem by division and specialization of labor. If there is a proper division of labor according to their specialization then this will increase the productivity and one can produce more goods with the same level of resources.
From this economic practice, we can overcome from the problem of scarce resources.
