Given Information:
Current cost of money = r = 0.011% per day
Period = n = 365 days
Required Information:
Discount rate = ?
Answer:
Discount rate = 4.096%
Explanation:
The required annual discount rate to discount the annual fee is given by
Where r is the current cost of money and n is the period in days
Current cost of money = r = 0.011/100 = 0.00011
Therefore, 4.096% is the required annual discount rate to discount the annual fee of $27,500.
Cost recovery deduction = $1520
Solution:
Given data
purchase price = $38,000
used the car business = 80%
used the car personal = 20%
solution
cost recovery limit are,
cost recovery limit = asset value × statutory % × mid quarter convention
We recognize the 5-year MACRS convention of car and the depreciation rate of MACRS is 20 percent in the first year.
so we use MACRS statutory % method
cost recovery limit = $38000 × 5%
cost recovery limit = $1900
we know maximum limit is $3160
so cost of recovery is $1900
so,
cost recovery deduction is
cost recovery deduction = cost recovery limit - personal use
cost recovery deduction = $1900 - ( $1900 × 20% )
cost recovery deduction = $1520
In economics, supply and demand refers to a relationship between the amount of a ware that producers wish to offer at different costs and the amount that consumers wish to purchase.
Because of the way that automobiles are ending up more fuel proficient the general impact on the equilibrium cost of gasoline is that there will be a less need of gas required thus the cost will diminish or decrease. According to my thinking, it would be more beneficial to the economy due to the lesser degree a need however it would offer more gas because of the abatement in cost. Society utilizes different things that uses gas other than cars, for example, lawnmowers, tractors, bikes, and so on. So despite the fact that new advancements are diminishing the cost related with creating gas society still deliver items that utilizes fuel every day that will keep on having an impact on the equilibrium price overall.
Answer:
a) $10 billion
b) <em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents which in turn be re-spent by them.</em>
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount. </em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the information given, if business investment increase by $2 billion, the resulting change in GDP would be
increase in real GDP = 2 billion × 5 = $10 billion
Explanation of the multiplier change in real GDP
<em>Real GDP increases by more than 2 billion because of the multiplier effect. This effect is implies that expenditures by made by one economic agent in a transaction becomes income in the hand of another which in turn be re-spent . This will continue in manifolds thereby increasing the total value of goods and services resulting from a single increase in autonomous spending in multiple fold.</em>
<em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents.</em>
Answer:
seven days.
Explanation:
Securities and Exchange Commission Form X-17A-5 Part II specifically states that brokers or dealers must deduct any differences resulting from aged short securities:
<em>"Deduct the market value of all short securities differences unresolved for 7 business days after discovery and the market value of any long security differences where such securities have been sold by the broker or dealer until they are adequately resolved, less any reserves established therefor." </em>