→Answer:
a. $188,533.82
b. $219,296.09
Explanation:
These problems can be solved using the present value of annuity formula which is:
PV= C x (1-(1+r)^-n)/r
Where:
PV = the present value of annuity (the amount we are solving for)
C= The annual amount receivable from the insurance company ($20,700)
r= The interest rate (7%)
n= Number of years (15 and 20 years respectively)
- To solve the first question (a) plug the variables into the formula and you will have → 20,700 × (1-(1.07)^-15)/.07= $188,533.82
- to solve the second question (b) plug the variables into the formula and you will have → 20,700×(1-(1.07)^-20)/.07 = $219,296.09
Answer: the correct answer is a. the competitive firm will attain resource-allocative efficiency, but the monopolist will not
Explanation: the monopoly will not attain allocative efficiency because in theory a monopoly won't lose a single customer even if it raises prices since it is the only company in the market selling that product.
Answer:
a. Journal entries to record the reinstatement of the account receivable
Account Title and Description Debit Credit
Account receivable account $600
Allowance for Doubtful Accounts account $600
(Reinstatement of the account receivable)
b. Journal entries to record the receipt of cash
Account Title and Description Debit Credit
Bank Account $600
Account receivable account $600
(Receipt of cash)
The correct answer is C. The government
Explanation:
The key feature of a planned economy is the strong influence and control of government in the economy. Indeed, in a planned economy it is the government the entity that decides on trade and production, this includes the prices of goods and the types of products that should be manufactured. Moreover, this does not occur in market economies because in these customers, produces and the law of supply/demand determine factors of the economy. According to this, in a planned economy prices are controlled by government.
