I think the answer is D because I took math all my school years and I’m smart.
Answer:
Monthly payment (A)
Interest rate (r) = 4% = 0.04
Number of years = 5 years
Number of times payment is made in a year (m) = 12
PV = A(1 - (1 + r/m)-nm)
r/m
PV = $600(1 - (1 + 0.04/12)-5)
0.04/12
PV = $600(1 - (1 + 0.0033)-5)
0.0033
PV = $600(1 - (1.0033)-5)
0.0033
PV = $600 x 4.950878649
PV = $2,971
Explanation:
In this case, we need to apply the formula for present value of ordinary annuity. The monthly payments, interest rate and number of years were provided in the question with the exception of present value. Therefore, we will make the present value the subject of the formula.
Answer:
The resources are allocated by the combined actions of the firms and the households and the central planning authority like the government.
Explanation:
Market economy is the economy where the demand and the supply laws direct the production of the services and goods. The supply involve the labor, natural resources and capital. Demand comprise of purchases by the consumers and the government.
In the market economy, the resources are allocated by the decisions of the firms and the households who are interacting in markets. It is an economy where the most economic decisions are the consequence from the interaction of the sellers and the buyers in the market but the government also plays a very vital role while allocation of resources are done.
Answer:
a. $16,500
Explanation:
The computation of the total amount of fixed manufacturing cost is shown below;
= Number of units sold & produced × fixed manufacturing overhead per unit
= 5,000 units × $3.30
= $16,500
Hence, the correct option is a.
Answer: Option (B) is correct.
Explanation:
Given that,
Reserve ratio = 25%
Fed reserve bank sells (securities) to public = $120 million
When a central bank sells the government securities to the public then as a result money supply in an economy decreases. This is an instrument of monetary policy known as " Open market Operations".
The supply of money is directly decreases by $120 million.
and
Money creating potential of banks = Amount of securities × 
= 120 × 
= 120 × 3
= $360 million
Hence, a decrease in money supply could eventually reach a maximum of $360 million.
