Answer: 500
Explanation:
At equilibrium, it should be noted that,
Y = C + I + G
where ,
C = Consumption = 20 + 0.7(Y - T)
I = Investment = 100
G = Government expenditure = 100
Y = C + I + G
Y = 20 + 0.7(Y - 100) + 100 + 100
Y = 20 + 0.7Y - 70 + 200
Y - 0.7Y = 150
0.3Y = 150
Y = 150/0.3
Y = 500
Answer:
5000 at 6%
6000 at 11%
Explanation:
Given that :
Total principal = 10000
Let :
Principal invested in business A = x
Principal invested in business B = y
Interest = Principal * rate * time
(x * 6% * 1) + (y * 11% * 1) = 900
0.06x + 0.11y = 900 - - - - (1)
x + y = 10000 - - - (2)
From (2)
x = 10000 - y
Put x = 10000 - y in (1)
0.06(10000 - y) + 0.11y = 900
600 - 0.06y + 0.11y = 900
600 + 0.05y = 900
0.05y = 900 - 600
0.05y = 300
y = 300 / 0.05
y = 6000
x = 10000 - y
x = 10000 - 6000
x = 5000
Answer:
Option (b) is correct.
Explanation:
Interest refers to the amount of money that a lender can earn on giving the loans to the borrowers. Borrower is a person who is liable to pay the interest on the borrowing amount.
Normally, a person is borrowing money or funds from the lender for making investment in a certain types of capital goods.
Interest rate refers to the rate at which lender lends its loanable funds to the borrowers.
The present value of cash flow will be greater if we compound less frequently holding the stated interest rate constant. true
<h3>What is
interest rate constant?</h3>
A proportion that compares a loan's annual debt service to the sum of its principal is known as a loan constant. The annual debt service is divided by the total loan amount to determine a loan constant. Borrowers can compare the loan constants of several loans when looking for a loan before choosing one. The loan with the lowest loan constant will have reduced debt service obligations, resulting in a shorter length of time during which the borrower will pay less in interest and principal. Only loans with fixed interest rates are subject to loan constants; loans with variable interest rates are not.
A loan constant is a ratio that illustrates the annual debt service of a loan in relation to the entire loan principal.
To learn more about interest rate constant from the given link:
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Answer: d) Dividends cause equity to decrease.
Explanation:
Dividends are payments to shareholders as a way of sharing the profit that the company made with its owners. Net profit is added to the Equity of company.
In other words, dividends cause equity to decrease because they are taken from Retained Earnings (net income) which are added to Equity. By reducing the amount of Retained earnings available therefore, dividends are reducing Equity.
