What is the most likely reason why the author includes realistic elements in his description of the watchdog?

At the beginning of this year, daily consumption of gasoline in the US amounted to 344 million gallons. It is estimated that for

Shkiper50 [21]

Answer:

335.43 million gallons

Explanation:

price elasticity of demand (PED) = % change in quantity demanded / % change in price

PED = -1.9% / 10% = -0.19, very inelastic

expected price increase $0.40

% change in price = ($3.45 - $3.05) / $3.05 = 13.11%

% change in quantity demanded:

-0.19 = D / 13.11%

D = 2.49%

quantity demanded will decrease by 2.49%, from 344 million gallons to 335.43 million gallons

8 0

3 years ago

A next monthly interest payment on a loan with a principal balance of $19,531 is $109.86. what is the interest rate on the loan?

8_murik_8 [283]

The next monthly interest payment on a loan with a principal balance of $19,531 is $109.86. 6.75% is the interest rate on the loan.

The interest rate is the percentage of the loan that the borrower pays to the lender. Most loans pay interest in addition to the principal. Lending rates are usually expressed in his APR or APR which includes both interest and fees.

Monthly Interest Payment means the amount of interest payable on the Payment Date for the preceding Interest Period based on the interest calculated at the Monthly Interest Rate for the preceding Interest Period.

Interest is an additional payment known as interest on top of the principal paid to a lender for the right to borrow money.

Learn more about monthly interest payment at

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7 0

2 years ago

Gargoyle Unlimited Gargoyle Unlimited is planning to issue a zero coupon bond to fund a project that will yield its first positi

asambeis [7]

Answer:

The answer is 6.72%

Explanation:

Calculating the imputed rate from a discount bond as follows:

( 1 + i )^n = FV / PV

( 1 + i )^3 = FV / PV, here FV= 1000 and PV= 727.25

so putting values in equation we have:

( 1 +i )^3 = 1000 / 727.25

( 1 + i )^3 = 1.375

solving for i

( 1 + i) = 1.375^1/3

( 1 + i ) = 1.112

i = 0.112 before tax rate

0.112 * (1 - tax rate) = after tax interest rate

0.112 * .60 = 0.0672 = 6.72%

thus the expected after tax cost of this debt issue is 6.72%

5 0

3 years ago

Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increa

lorasvet [3.4K]

Answer:

The answer is: A) A decrease in the price of paper used to make greeting cards.

Explanation:

In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.

3 0

3 years ago

On January 1, 2018, Friendly Farm Company purchased a new machine at a cost of $350,000. The machine has an estimated useful lif

schepotkina [342]

Answer:

Friendly Farm Company

Schedule of Straight-line, Units of Production, and Double Declining Balance:

Straight-line Units of Production Double Declining

Year 1 Book value $350,000 $350,000 $350,000

Depreciation Exp. $80,000 $96,000 (30,000*$3.20) $175,000

Year 2 Book value $270,000 $254,000 $175,000

Depreciation Exp. $80,000 128,000 (40,000*$3.20) 87,500

Year 3 Book value $190,000 $126,000 $87,500

Depreciation Exp. $80,000 64,000 (20,000*$3.20) 43,750

Year 4 Book value $110,000 $62,000 $43,750

Depreciation Exp. 80,000 32,000 (10,000*$3.20) $13,750

Residual value $30,000 $30,000 $30,000

Explanation:

a) Data and Calculations:

Cost of new machine = $350,000

Estimated useful life = 4 years or 100,000 hours

Residual value = $30,000

Usage of machine:

Year 1 = 30,000 hours

Year 2 = 40,000 hours

Year 3 = 20,000 hours

Year 4 = 10,000 hours

Units of Production = $320,000/100,000 = $3.20 per unit

Depreciable amount = $320,000 ($350,000 - $30,000)

Straight-line method, Depreciation per year = $80,000 ($320,000)

= 25% (100/4).

Depreciation expense, using Double-Declining Balance rate = 25% * 2 = 50%:

Year 1 = $350,000 * 50% = $175,000

Year 2 = $175,000 * 50% = $87,500

Year 3 = $87,500 * 50% = $43,750

Year 4 = $13,750 ($43,750 - $30,000)

b) These different methods still arrive at the same end result as shown above. Note that depreciation is an accounting estimate which spreads the cost of an acquired long-term asset over its useful life.

5 0

3 years ago