Answer:
FV= $46,031.45
Explanation:
Giving the following information:
Monthly deposit= $450
Number of months= 59
Interest rate= 0.21/12= 0.0175
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {450*[(1.0175^59) - 1]} / 0.0175 + 450
FV= $46,031.45
Answer:
The Bad Debt expense will be in year 1;
Explanation:
The Bad Debt Expense $45,000*1%=$450
The journal entry will be
Bad Debt Expense Dr.$450
Account Receivable Cr.$450
Answer:
contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk
Explanation:
A moral hazard can be understood as the concept that a participant that is sheltered from danger in some manner will behave significantly than if they were not.
Every day, we see moral hazard in the form of established academics who remain apathetic presenters, individuals who have burglary insurance who are less attentive about where they parked, compensated workers who take long vacations, and etc.
Thus, from the above we can conclude that the correct option is C.
Answer:
less than the government spending multiplier
Explanation:
Given :
Percentage spends by a households for the increase in the income = 75%
So the mpc = 0.75
Potential output = 600 billion arcs
The government multiplier is = 
= 4
The tax multiplier is = 
= 3
Thus we see that the tax multiplier is less than the government spending multiplier.
