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kotegsom [21]
3 years ago
15

Bill and Alma are shopping for their first home. They have found two houses that are nearly identical except for their locations

. One house costs $250,000 and is 15 miles from their places of employment. The second house costs $275,000, but it is within 5 miles of where they both work. Now Bill and Alma are trying to decide if living 10 miles closer to their workplaces is worth the extra $25,000 in the cost of the house. Which decision-making concept are they using?
a. Total utility
b. Opportunity cost
c. Marginal analysis
d. Time value of money
Business
1 answer:
Verizon [17]3 years ago
8 0

Answer:

The correct answer is c. Marginal analysis

Explanation:

Marginal analysis is a technique you can apply when you are comparing some options.  We can say this analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Using this technique you can maximize the potential profits.

The additional cost versus the additional benefit of a decision. In this case,  Bill and Alma are analyzing if  living 10 miles closer to their workplaces ( benefit) is worth the extra $25,000 in the cost of the house(cost). This is marginal analysis.

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Most state and local income are either? progressive or flat
Natasha_Volkova [10]
Fkat regressive is the answer
8 0
3 years ago
Read 2 more answers
You buy a seven-year bond that has a 5.25% current yield and a 5.25% coupon (paid annually). In one year, promised yields to mat
Rufina [12.5K]

Answer:

HPR = 0.371%

Explanation:

we must first determine the price of the bond in 1 year:

present value of face value = $1,000 / (1 + 6.25%)⁶ = $695.07

present value of coupon payments = $52.50 x 4.87894 (PV annuity factor, 6.25%, 6 periods) = $256.14

market price in 1 year = $951.21

since you bought the bond at face value (market value = YTM), the the holding period return is:

HPR = [(ending price - actual price) + dividends received] / actual price

HPR = [($951.21 - $1,000) + $52.50] / $1,000 = $3.71 / $1,000 = 0.371%

5 0
2 years ago
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,874. Cash receipts yet to be de
My name is Ann [436]

Answer:

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

J1

Bank $39 (debit)

Interest Earned $39 (credit)

J2

Bank service fee $28 (debit)

Bank $28 (credit)

Explanation:

<em>Step 1 Bring the Cash Balance in the Cash Book up to date</em>

Debit :

Balance as at August 31, 2021,                                   $7,874

Interest Earned                                                                 $39

Totals                                                                            $7,913

Credit:                  

Bank service fee                                                              $28

Balance Up dated (Balancing figure)                         $7,885

Totals                                                                            $7,913

<em>Step 2 Prepare the Bank Reconciliation Statement</em>

<u>Bank Reconciliation Statement</u>

Balance at bank as per the Cash Book (updated)   $7,885

Add Unpresented Cheques                                        $1,355

Less Bank Lodgements not yet credited                 ($3,268)

Balance as per bank statement                                 $5,972

6 0
3 years ago
You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize
Arada [10]

Answer:

Present value = $6404.20

Explanation:

Data provided in the question :

Amount of the Centennial lottery prize won = $1.4 million = $1,400,000

Time after which the amount will be received, n = 70 years

Discount rate, r = 8%

Now,

the present values is given as:

\textup{Present value}=\frac{\textup{Principle amount}}{(1+r)^n}

on substituting the respective values, we get

\textup{Present value}=\frac{\textup{$1,400,000}}{(1+0.08)^70}

or

Present value = $6404.20

6 0
3 years ago
When a home is hit with a assessment to pay for an improvement in the neighborhood such as sidewalk repair, or paving a road, or
enyata [817]

Answer:

Brokers must disclose the information regarding the improvement and the fact that the property's taxes will increase the next year. Neighborhood improvements are paid by  Special Assessment Districts adding taxes to existing properties or increasing sales taxes. Buyers need to know what property taxes they are expected to pay, and in this case, the current property taxes must be adjusted to show the real amount that will  be paid in the future.

This isn't something necessarily bad because you are going to pay higher taxes, but your neighborhood is also improving.

8 0
3 years ago
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