Answer:
The answer is $80,000
Explanation:
The formula for straight-line depreciation is:
[Cost of asset - salvage value(if any)] ÷ useful life of the asset
Depreciation = $4,000
Cost of asset= ? (represented by y)
Useful life of the asset = 20 years
$4,000 = y ÷ 20 years
y is $4,000 x 20 years
y = $80,000
Therefore, the initial cost of the asset was $80,000
Answer:
6.34
%
Explanation:
For computing the coupon rate, first we have to determine the PMT by using the PMT formula that is shown on the attachment
Given that,
Present value = $939.02
Future value = $1,000
Rate of interest = 7.15% ÷ 2 = 3.58%
NPER = 11 years × 2 = 22 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the PMT is $31.70
It is semi annually
Now the annual PMT is
= $31.70 × 2
= $63.40
So, the coupon rate equals to
= $63.40 ÷ $1,000
= 6.34
%
Answer:
- <em>The slope of the demand curve at point A is </em><u><em> </em></u><u>- $0.40/unit</u>
- <em>The slope of the demand curve at point B is </em><u>- $0.14/unit</u>
Explanation:
See the file attached with the figure corresponding to this question.
<em>The slope of a curve</em> at a given point is the slope of the line tangent to the curve at that point.
<em><u>Point A:</u></em>
The tangent line to the <em>demand curve at point A is</em> drawn and passes through the points (20, 34) and (45, 24).Then, the slope is:
- slope = rise / run = ΔP / Δq = $ (34 - 24) / (20 - 45) units
- slope = - $10 /25units = - $2/5units = - $0.40/unit.
The minus sign indicates the that price decreases when the quantity increases
<u><em>Point B:</em></u>
<em>The tangent line to the demand curve at point B</em> passes through the points (90, 12) and (140, 5).Then, the slope is:
- slope = rise / run = ΔP / Δq = $ (12 - 5) / (90 - 140) units
- slope = - $7 /50units = - $7/50units = - $0.14/unit.
Again, the negative sign indicates that when the number of units increase the price decreases.
Answer:
Fair price of the insurance policy is $62,500.
Explanation:
We have given that an investment that will pay you and your heirs $5000
So the annual cash flow = $5,000
It is given that you can earn 8 % annually on your money
Required rate of return = 8%
We have to find the fair price for the investment
Price of this annuity 
Fair price for the investment is $62,500.
I will assume this is a true or false question. The statement above is false. Usually, in all states, the automobile repair shops are allowed to hold their client's car until it is fully repaired this is because the physical car should be present in the shop to be able to be repaired.