<span>The fiscal policy of government can have a monetary impact on the economy.
When talking about the fiscal policy of a government, that is meaning the government can adjust spending levels and tax rates that change the nation's economy. When they do this, they are able to mess with and see what changes in the economy based on the changes they make themselves. </span>
Answer:
the gain being $7, the value couldn't be less then 12 if it's not brought back for shortcomings and resold for $15
Answer:
$264202
Explanation:
We use the present value formula to calculate the money to be invested now in order to get 334300
PV = FV *1/(1+R)^n
334300*1/(1.04)^6
=$264202
Answer:
One bank has offered a simple interest loan of 10% that requires monthly payments. The loan principal will be paid back at the end of the year.
to calculate the monthly payment we must use the present value of an annuity formula:
monthly payment = principal / ({1 - [1 / (1 + r)ⁿ]} / r)
monthly payment = $500,000 / ({1 - [1 / (1 + 0.008333)¹²]} / 0.008333) = $43,957.94
THIS OPTION IS BETTER BECAUSE MONTHLY PAYMENTS ARE LOWER
Another bank has offered 7% add-on interest to be repaid in 12 equal monthly installments.
amount of principal paid per month = $500,000 / 12 = $41,666.67
amount of interest paid per month = ($500,000 x 7%) / 12 = $2,916.67
total monthly payment = $44,583.34
Answer:
sales revenue: 2,879,458.66
interest revenue over the period: 620,541.34 (this will be accrued by a portion each year)
Explanation:
As the goods are delivered immediately but the payment delayed for years, there is a significant financing component
To know the sales revenue and interest reveneu we should discount the 3,500,000 at 5% discount rate to know the present value of the goods sold:
Maturity 3,500,000.00
time 4.00
rate 0.05000
PV 2,879,458.66
