GDP stands for gross domestic product. The GDP allows economist to measure the market value in terms of money. They are measuring the final good or service that is being offered to a customer over any given time.
Since the first bag of flour is being sold to a bakery to make bread from and sell for $4.00 the GDP of this item is $4.00 because that is the cost a customer is paying.
The second bag of flour is sold to a customer for $2.00 in a grocery store and is the final cost a they are paying.
In this scenario, the GDP for the two products being sold to a customer is $6.00.
Answer: I must invest <u>$85424.14</u> today in order to buy a Ferrari nine years from now on the day I turn 30.
We have
Price of the Ferrari nine years from now (Future Value - FV) $215000
Expected Rate of return on the mutual fund (r) 10.8%
Time until I turn 30 (n) 9 years
We can calculate the Present Value (PV) or the money to be invested today as
![\mathbf{PV = \frac{FV}{(1+n)^{n}}}](https://tex.z-dn.net/?f=%5Cmathbf%7BPV%20%3D%20%5Cfrac%7BFV%7D%7B%281%2Bn%29%5E%7Bn%7D%7D%7D)
![PV = \frac{215000}{(1+0.108)^{9}}](https://tex.z-dn.net/?f=PV%20%3D%20%5Cfrac%7B215000%7D%7B%281%2B0.108%29%5E%7B9%7D%7D)
![\mathbf{PV = 85424.14022}](https://tex.z-dn.net/?f=%5Cmathbf%7BPV%20%3D%2085424.14022%7D)
Answer: Business
Explanation: In simple words, business refers to a group of activities that an individual performs, by taking calculated risk, for the ultimate purpose of making profit.
In the given case, Marcia Simpson is starting the new academy to target wealthy corporate employees.
Hence we can conclude that she is willing to start a business.
Answer:
Petty cash refers to a certain amount, which is kept by the company to spend it on small items related to the business.
Explanation:
The Journal entry is given below:
Last year's goods and services.