1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marat540 [252]
2 years ago
6

Walter is a chemistry teacher who earns $50,000 per year, while Jesse is unemployed. Both Walter and Jesse want to go back to sc

hool to earn a business degree to help them operate their new business. The tuition each one would have to pay is the same, and they have agreed each to pay half of the tuition regardless of which one attends. Assume they cannot attend part-time. Do they indeed face the same cost of enrolling in this program. Why or why not?
Business
1 answer:
katrin2010 [14]2 years ago
6 0

Answer:

No, their economic cost of enrolling in the business program is not the same for both,

Explanation:

The explicit costs of going back to college are the same for Walter and Jesse, e.g. they might be $20,000 per year, or even $30,000 doesn't matter for this analysis. But Walter is currently working as a teacher and that means taht if he decides to go to college, his implicit costs will include the forgone salary as a teacher which is $50,000 per year. Implicit costs are opportunity costs, i.e. additional costs or benefits lost from choosing one activity or investment instead of another alternative.

Since Jesse is not working, whether she goes back to college or not will not affect her income, it will still be $0, but if Walter goes back to college he will lose his salary.

You might be interested in
Organizations periodically have an external entity review the controls so as to uncover any potential problems in the controls.
vivado [14]

Answer: information system audit

Explanation:

The information system audit is the process through which organizations periodically have an external entity which helps in reviewing the controls in order to uncover any potential problems in the controls

In order to know how effectivene the information system controls is, the information systems audit is vital. It is required to verify the accounting records of an organization as well as the financial statements.

8 0
2 years ago
Using the continuous compounding equation, if someone invested $5,000 at an interest rate of 3.5%, and someone else invested $5,
UNO [17]

Answer:

Therefore after 16.26 unit of time, both accounts have same balance.

The both account have $8,834.43.

Explanation:

Formula for continuous compounding :

P(t)=P_0e^{rt}

P(t)=  value after t time

P_0= Initial principal

r= rate of interest annually

t=length of time.

Given that, someone invested $5,000 at an interest 3.5% and another one  invested $5,250 at an interest 3.2% .

Let after t year the both accounts have same balance.

For the first case,

P= $5,000, r=3.5%=0.035

P(t)=5000e^{0.035t}

For the second case,

P= $5,250, r=3.5%=0.032

P(t)=5250e^{0.032t}

According to the problem,

5000e^{0.035t}=5250e^{0.032t}

\Rightarrow \frac{e^{0.035t}}{e^{0.032t}}=\frac{5250}{5000}

\Rightarrow e^{0.035t-0.032t}=\frac{21}{20}

\Rightarrow e^{0.003t}=\frac{21}{20}

Taking ln both sides

\Rightarrow lne^{0.003t}=ln(\frac{21}{20})

\Rightarrow 0.003t}=ln(\frac{21}{20})

\Rightarrow t}=\frac{ln(\frac{21}{20})}{0.003}

\Rightarrow t= 16.26

Therefore after 16.26 unit of time, both accounts have same balance.

The account balance on that time is

P(16.26)=5000e^{0.035\times 16.26}

              =$8,834.43

The both account have $8,834.43.

7 0
3 years ago
If the fed buys $25 billion of u.s. bonds in the open market and the reserve requirement is 20 percent, m1 will eventually:___.
klio [65]

M1 will eventually Increase by $125 billion. If the fed buys $25 billion of u.s. bonds in the open market and the reserve requirement is 20 percent.

U.S. savings bonds are a form of government debt issued to American citizens to help fund federal expenditures.

Savings bonds are sold at a discount and mature to their full face value, and do not pay regular coupon interest.

Series EE bonds are sold at half of face value and mature in 20 years. Series I bonds are adjusted for inflation.

Initial Increase in Money Supply = $25 billion

Reserve Requirement = 20%

Money Multiplier = 1 / Reserve Requirement

Money Multiplier = 1 / ( 20 / 100 )

Money Multiplier = 100 / 20

Money Multiplier = 5

Total Increase in M1 = Money Multiplier X Initial Increases in Money Supply

Total Increase in M1 = 5 X 25

Total Increase in M1 = 125

Therefore, Total Increase in M1 is $125 billion.

Learn more about U.S. savings bonds here

brainly.com/question/9823766

#SPJ4

8 0
1 year ago
On this date last year, you borrowed $3,900. You have to repay the loan with a lump sum payment of $6,000 six years from now. Wh
Vlada [557]

Answer:

Interest Rate=0.0635=6.35%

Explanation:

Given Data:

Money Borrowed last year=PV=$3,900

Future Payment as a lump sum payment=FV=$6,000

Total Number of years=n=7 years

Required:

Interest Rate=i=?

Solution:

Formula:

FV=PV(1+i)^n

In our case, FV=$6,000, PV=$3,900, n=7

i=(\frac{FV}{PV})^{1/n}-1\\i=(\frac{6000}{3900})^{1/7}-1\\ i=0.0635

Interest Rate=0.0635=6.35%

8 0
3 years ago
Half of all your potential customers would pay $16 for your product but the other half would only pay $10. You cannot tell them
Elena L [17]

Answer:

$4

Explanation:

5 0
2 years ago
Other questions:
  • Why is inflation both good and bad how does the government try to control it?
    6·1 answer
  • The ____ principle morally requires employees to support the rules of the organization as long as the organization is just (or f
    13·1 answer
  • Gabriele Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $1,000, and s
    9·1 answer
  • Suppose there exists a market for coffee that is in equilibrium at 500 cups brewed per week for $3/cup. Now suppose the demand f
    6·1 answer
  • Two mutually exclusive alternatives are being considered.
    15·1 answer
  • To increase total asset turnover, management must either increase sales or reduce total stockholders’ equity.A. TrueB. False
    12·1 answer
  • The debt created by a business when it borrows from a vendor or supplier is called a(n):
    8·2 answers
  • You need to have $33,250 in 11 years. You can earn an annual interest rate of 4 percent for the first 6 years, and 4.6 percent f
    15·1 answer
  • Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corpor
    12·1 answer
  • Budgeting - The Production Budget (2pts): Spanasonic Co. manufactures batteries for electric vehicles. Management reports ending
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!