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3 years ago

9

What is the present value on January 1, 2019, of $30,000 due on January 1, 2023, and discounted at 10% compounded annually? $ 95

,095.96 What is the present value on January 1, 2019, of $40,000 due on January 1, 2023, and discounted at 11% compounded semiannually?

1 answer:

Lisa [10]3 years ago

4 0

Answer:

$20,490.3

$26349.24

Explanation:

Data provided in the question:

Future value of the amount due on January 1, 2023 = $30,000

Discount rate, r = 10% = 0.10

Time, n = 4 years [from 2019 to 2023]

Now,

Future value = Present value × (1 + r)ⁿ

thus,

$30,000 = Present value × (1 + 0.1)⁴

or

$30,000 = Present value × 1.4641

or

Present value = $20,490.3

Case 2:

Future value of the amount due on January 1, 2023 = $40,000

Discount rate, r = 11% = 0.11

Time, n = 4 years [from 2019 to 2023]

Now,

Future value = Present value × (1 + r)ⁿ

thus,

$40,000 = Present value × (1 + 0.11)⁴

or

$40,000 = Present value × 1.51807041

or

Present value = $26349.24

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Answer:

The point p should be located to 4.42 km far from the refinery

Explanation:

Minimum of these costs occurs when <em>x = 1/ $\sqrt{3}$ </em> , so <em>distance </em>should be <em>m</em> km to the east of the refinery.

<em>m = 5 - x </em>

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3 years ago

Upward and downward changes in aggregate economic activity, as measured by GDP, are called: Group of answer choices

8_murik_8 [283]

Upward and downward changes in aggregate economic activity, as measured by GDP, are called Business cycles.

<h3>What is Business cycles?</h3>

Business cycles can be regarded as the cyclical upswings as well as the downswings that is been used in in the broad measures of economic activity.

Therefore, Business cycles is Upward and downward changes in aggregate economic activity, as measured by GDP.

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2 years ago

Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for

Katen [24]

Answer:

1) C) The value of the services of the real estate agent

2) B) $6,400

Explanation:

First, there are two questions lumped together as one

Question 1: Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?

A) The value of the house in 2013

B)The value of the house in 2016 minus depreciation

C) The value of the services of the real estate agent

4) The value of the house in 2016

Question 2: Suppose that a simple economy produces only four goods and services shoes. DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.

Products Quantity Price

Shoes 40 $60

DVDs 100 $18

Tomatoes 2,000 $1

Ketchup 300 $4

Using the information in the above table, nominal GDP for this simple economy equals A) $7, 400. B) $6, 400. C) $5, 800 units. D) $2, 440.

<u>Answer to the First Question</u>

First the Gross Domestic Product of a Country usually represents the market value or referred to as total monetary value of finished products as well as services that were engaged in during a specific period of time and within the borders of that country. The thing about GDP is that it only reflects items that are captured as products or services and which are reported for the year.

In the question therefore, the GDP will only reflect the value of product or service that was newly created in 2016. The house was built in 2003, therefore the relevant GDP item (value of the house) was captured in 2003.

The only new value is the Value of the services of the real estate agent who was engaged in 2016 to facilitate the sales of the house.

<u>Answer to the Second Question:</u>

Nominal GDP represents GDP valued at current market prices for products or services.

To calculate the Nominal GDP we look at the goods and then calculate based on their current market prices.

(Shoes = 40 pieces x $60) + (DVDS = 100 pieces x $18) + (Tomatoes (1000x$1 - 1/2 purchased by households) + (Ketchup 300 x $4)

= $2400+ $1,800+ $1000+ $1,200

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3 years ago

To increase living standards, public policy should a. ensure a greater degree of equality, taking all income-earners into accoun

padilas [110]

Answer:

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Explanation:

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Public policy is a policy made by the government to bring its decisions into actions with the help of public.

In order to increase the living standard , public policy should make sure that the workers working under the policy for the government are educated enough and they have proper knowledge about operating the necessary tools , equipments and technology .

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3 years ago

A customer purchases $340 worth of merchandise from The GAP using a gift card. What is the journal entry The Gap records?

OLga [1]

Answer:

Option (d) is correct.

Explanation:

Given that,

Customer purchases $340 worth of merchandise from The GAP using a gift card.

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The journal is as follows:

Unearned revenue A/c Dr. $340

To sales revenue A/c $340

(To record the merchandise sold for a gift card)

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3 years ago