Answer:
Here we need to find the length of an annuity. We know the interest rate, the PV, and the payments. Using the PVA equation:
PVA =C({1 – [1/(1 +r)t]} /r)
$14,500 = $500{[1 – (1/1.0155)t] / 0.0155}
Now we solve for t:
1/1.0155t = 1 − {[($14,500)/($500)](0.0155)}
1/1.0155t= 0.5505
1.0155t= 1/(0.5505) = 1.817
t = ln 1.817 / ln 1.0155 = 38.83 months
<u>Account will be paid off in 38.83 months.</u>
Answer:
B) Implement policies to encourage greater consumption.
Explanation:
The Paradox of thrift says that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will, in turn, lower total saving due to that total saving may fall because of individuals' attempts to increase their saving, Therefore, to avoid the paradox of thrift policies to encourage consumption must be implemented.
Answer:
$80 lost for not working
Explanation:
Opportunity cost refers to the sacrificed benefits as a result of preferring on a particular option over another. As people make choices, the forfeit one option in favor of another. Opportunity cost is the missed value of the next best alternative.
For John, he has a choice between working or going to the concert. He has two tickets worth $50. Working would mean her twice her regular income, which is $20 per hour. If he works for four hours, his total earning will be $80. If John chooses to go to the concert, he will miss the opportunity to earn $80. The opportunity cost will be the missed $80 that he would have received from working.
You can write a cover letter argument in a bullet point list. A paragraph is an easy way to summarize your argument. Using bullet points is a good way to focus your arguments and have strong facts.
Answer:
Debit retained earnings for $15.30 million.
Explanation:
As per the data given in the question,
Declaration of common stock dividend indicates no cash payments, only extra shares issued with rate of stock dividend
In this Rick Co. had 30 million shares and Rick Co. declared 1% stock dividend
which means 30 million × 1% = 0.30 million shares issued
Retained earning = (0.30 million × $51)
= $15.30 million
To common stock A/c = (0.30 × $1) = $0.30 million
To capital paid in access A/c = (0.30 million × ($51-$1)) = $15.00 million
( Being stock dividend was issued at 1% )
Hence, Option (d) Debit retained earning for $15.30 million is correct.
