The answer to the case illustrated in the question given is (C) No; she should save more for her emergency fund because she has saved less than the recommended amount.
This is because her emergency fund is actually less than the amount that most people recommend you should have: which is at least around 3 months’ worth of your living expense. It is even better if you can save for at least 6 months’ worth of your living expense.
Answer:
A. Disagree. Checking accounts represent something that the bank owes to the owner of the account. It is a bank liability.
Explanation:
Given the definitions of liabilities and assets, it is also important to distinguish the <em>point of view</em> when discussing whether a specific item is an asset or liability.
Since a checking account represents money bank users deposit into the bank, that means that the <u>bank owes the money deposited</u> to the bank customer.
Similarly, a car loan is a bank asset. It is an essential bank product representing the money lent to someone. That means <u>bank users owe the bank</u> in that case. Although the bank doesn't possess the loan money after providing someone with a loan, the loan money will be returned to the bank after some time (representing the key asset characteristic).
Answer:
13.33
Explanation:
We have to write 2 equations to set equal to each other.
The first one will look like this:
200x + 5,000
The x will go with the 200 because the project revenue grows by $200 each month thereafter the start of $5,000.
The second equation will look like this:
50x + 7,000
The project begins at $7,000 and grows by $50 every month so the x will go with the 50.
Now, set them equal to each other
200x + 5,000 = 50x + 7,000
Solve
150x + 5,000 = 7,000
150x = 2,000
x = 13.333
Therefore, in the thirteenth month the project will breakeven.
<em>Hope this helps!!</em>
<em>- Kay :)</em>
Answer:
1. work hard
.
2. are
3. $15.
Explanation:
1. In terms of Larry's total utility, it is worse for him to work hard
.
Larry will prefer to shirk as this is easier for him to do than actually work hard, since he stands to generate $50. So it's worse for him to work hard.
2. Sondra and Larry together are better off if Larry works hard instead of shirking.
Sondra and Larry stand to generate more money if Larry works hard because they will lose if Larry decides to shirk instead.
3. The most Sondra should be willing to pay Carrie to supervise Larry, assuming supervision is sufficient to encourage Larry to work hard, is $15.
She should pay Carry an amount half the amount they stand to lose if Larry shirks. Since they stand to lose $30 if Larry shirks, she can pay Carrie $15 to supervise Larry.
