Answer:
d. All of the above are correct.
Explanation:
a. This tax causes the demand curve for fountain drinks to shift downward by $0.50 at each quantity.
b. The price paid by buyers is $0.30 per drink more than it was before the tax.
This is true as the difference between $0.50 and $0.20 is $0.30. The price paid by buyers is indeed $0.30 per drink more than it was before the tax.
c. Forty percent of the burden of the tax falls on the sellers.
This is true as $0.20 of $0.50 is 40% and this tax burden falls on the sellers.
Answer:
10.94%
Explanation:
Your father was born 48 years ago
His grandfather deposited $250 in an account for him
Today the money is worth $36,500
The annual rate of his return can be calculated as follows
= 36500/250 ×1/48= (1+r/100)
= 146^0.020833= (1+r/100)
= 1.1094-1
= 0.10940×100
= 10.94%
Answer:
15%
Explanation:
This is a time value of money question which requires the calculation of the effective annual rate (EAR) on the loan.
First calculate the <em>interest rate</em> of the loan that is <em>compounded monthly</em> using the given parameters as follows :
Pv = $45,975.00
N = 9 × 12 = 108
Pmt = - $752.50
P/yr = 12
Fv = $ 0
i = ?
Interest Compounded Monthly = 14.0579 %
Effective = 15% (using a financial calculator)
