Answer:
A. Estimate the apartment rental demand curve assuming that it is linear and that price is expressed as a function of output.
the demand curve's slope = -10 / 1 = -10
demand curve = a - 10b
since all 100 units will be rented when p = $900
900 = a - 10(100)
900 = a - 1,000
1,900 = a
demand curve = 1,900 - 10b
B. Calculate the revenue-maximizing apartment rental rate. How much are these maximum revenues
we must first fin total revenue and then find hte derivative
total revenue = p x a
total revenue = (1,900 - 10a) x a
total revenue = 1,900a - 10a²
revenue maximizing quantity' = 1,900 - 20a
20a = 1,900
a = 95 apartments rented
price = 1,900 - (95 x 10) = $950
total revenue = $950 x 95 = $90,250
Answer:
6.82%
Explanation:
In this question we use the PMT formula that is shown on the attachment below:
Given that,
Present value = 102.037% × $2,000 = $2,040.74
Future value = $2,000
Rate of interest = 6.62% ÷ 2 = 3.31%
NPER = 18 years 2 = 36 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $68.15
Now the coupon rate is
= PMT ÷ face value × 2
= $68.15 ÷ $2,000 × 2
= 6.82%
Answer: Option D
Explanation: In simple words, normal cash flows refers to those cash flows which have one initial investment at the beginning followed by a stream of inflows while in case of non normal cash flows the stream keeps changing from inflows to outflows.
Normal cash flows have only one IRR as there can only be single rate at which NPV will be zero while in case of Non normal there are two IRR due to uneven stream.
Thus, we can conclude that the correct option is D.
The definition in my own words are:
- Cash Basis of Accounting: is type of accounting that that makes use of revenues and expenses at the time cash is received.
- Accrual Basis of Accounting: The accrual basis of accounting focus on recording revenues .
- Matching Principle: can be regarded as accounting concept that focus on companies report expenses .
- Time-Period Principle: is one that a business should report the states that financial results of its activities .
- Accounting Period: serves as the period of time that is used for accounting functions, this can be a fiscal year.
<h3>What is accounting?</h3>
Accounting serves as the process which involves the recording as well as summarizing business and financial transactions.
Learn more about Accounting on:
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