Answer:
This statement is true.
Explanation:
The concept of income elasticity measures a change in the demand because of change in the income of the consumer.
It is calculated as the ratio of change in demand to change in income.
A person was earning $10,000. Her income increased to $20,000.
Her consumption of macaroni decreased from 10 pounds to 5 pounds.
While her consumption of soy-burgers increased from 2 pounds to 4 pounds.
Income elasticity for macaroni
= 
= 
=
=
= -1
Income elasticity for soy-burgers
=
= 
=
= 1
So, we see that macaroni has a negative income elasticity, its demand decreases with increase in income. Macaroni is an inferior good.
Soy-burgers sow a positive income elasticity. Their demand increases with increase in income. They are normal goods.
Kevin's profession is most likely a financial manager.
Answer:
$12714.98
Explanation:
Data provided in the question:
Initial amount invested = $1,500
Simple interest rate = 6.5%
Duration for simple interest = 48 months = 4 years
Now,
Simple interest = Amount × Interest rate × Time
= $1,500 × 0.065 × 4
= $390
Therefore,
Total amount = $1500 + $390
= $1890
Now
The amount = $1890 is invested in mutual fund which is compounded annually at 21% for 10 years
thus,
Final amount = Principle × (1 + r)ⁿ
here, r = 21% = 0.21
n = 10 years
Therefore,
Final amount = $1890 × (1 + 0.21)¹⁰
= $12714.98
Answer:
stock our for day trading bonds and trading ways thier divided stacks for long term passive income bonds are more safer investment though will be accped by any bank without qeoutions
Answer:
a. $29,000
b. $214,000
c. Yes
Explanation:
a. Annual Depreciation expense:
= (Cost - salvage value)/ Useful life
= (330,000 - 40,000) / 10,000
= $29,000
b. Net book value at end of 4th year:
= Cost - 4 year depreciation
= 330,000 - (4 * 29,000)
= $214,000
c. One test to see if equipment is not impaired is that the Expected Undiscounted cashflows need to be higher than the net book value. This is not the case here as the Net Book value of $214,000 is higher than the expected Undiscounted cash inflows of $185,000. Equipment is therefore impaired.
