Answer: It is done so that it can match the ongoing use of the asset with the economic benefits derived from it.
Explanation:
Answer:
$105.
Explanation:
Since you are considering buying a $ 700 refrigerator on an installment loan with nothing down and 12 monthly payments of $ 72.92, and you could also charge it to a revolving credit card with a 22 percent APR and pay it off with 12 payments of $ 64.84 and your credit card company would also give you a cashback bonus of 1 percent for the purchase, to determine how much you would save by using the credit card the following calculation must be performed:
72.92 x 12 = 875.04
64.84 x 12 = 778.08
778.08 - (778.08 / 100) = 770.29
875.04 - 770.29 = 104.74
Thus, rounded to the nearest dollar, by paying with the credit card you would save an amount of 105 dollars.
Inferior good:
Demand for that good decreases of the average income of the population increases.
Demand of that good increases of the average income of the population decreases.
<span>Of the company xyzxyz increased it's variable expenses during the current year, that means it spent more money to operate the business, even though fixed expenses remained the same. As a result, unless the company had more revenue, there has to be less profit.</span>
Answer:
The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.
Explanation:
She may immediately sell the bonds but it is unclear how much money they will sell for.
Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000 bond investment for 10 years, she would have been assured the bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.
Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.
In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.
