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3 years ago

Give two reasons why value of norminal GDP would increase

1 answer:

7 0

1. Positive economic growth means that the value of all goods and services produced in the economy increase by an unknown amount

2. growth in the amount of goods and services produced

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You have bought a house today at the price of $500,000. In the next two years, you will get a rent of $50,000 each year. In year

Illusion [34]

Answer:

Present Value= $45,454.55

Explanation:

Giving the following information:

You will get a rent of $50,000 each year.

The discount rate is 10%.

To calculate the present value at time zero of the first rent, we need to use the following formula:

PV= FV/(1+i)^n

PV= 50,000/(1.10)= $45,454.55

6 0

3 years ago

XYZ Company purchased a new piece of equipment on January 1, 2022. The following information relates to the equipment purchased:

mina [271]

Answer:

Residual Value = $5,400

Explanation:

At first, we have to calculate the cost of equipment.

Using double-declining method,

The depreciation as per 2023 = $30,000.

The depreciation rate to use the double-declining method = (100%/Useful life) x 2 = (100%/8) x 2 = 25%

Therefore, the beginning balance of equipment in 2023 (or, the ending balance in 2022) = $\frac{30,000}{0.25}$

The beginning balance of equipment in 2023 = $120,000

Using the same approach,

The beginning balance of equipment in 2022 (Or, the purchasing price) =

Depreciation = Purchase price x 25%

since the purchase price and depreciation are unknown, therefore, we use,

Ending value in 2022 = Purchase price x (100% - 25%) (Depreciation rate is 100%)

or, $120,000 = Purchase price x 75%

or, Purchase price = $120,000/0.75 = $160,000

Now, using the straight-line method,

Useful life = 8 years

Purchase price = $160,000

Book value after 4 years (As of December 2025, the equipment was purchased in January 2022) = $82,700

Therefore, accumulated depreciation = $160,000 - 82,700 = $77,300 for 4 years.

As the straight-line method depreciation is same for each year,

the depreciation for the first year = $\frac{77,300}{4}$ = $19,325

According to the straight-line method,

Depreciation = $\frac{Purchase price - Residual value}{Useful life}$

or, $19,325 = $\frac{160,000 - Residual Value}{8}$

or, $19,325 x 8 = $160,000 - Residual value

or, Residual Value = $160,000 - $154,600

Hence, Residual value = $5,400

6 0

3 years ago

Stuart wishes to have $14,000 to buy a used car three years from now. He plans to accomplish this, through an account with a nom

nataly862011 [7]

Answer:

The smallest Q that will suffice is 409.86

Explanation:

Since Future value of payments = 14000

300*[(1 + 3%/12)^12 - 1]/3%/12*(1 + 3%/12)^24 + Q*[(1 + 3%/12)^24 - 1]/3%/12 = 14000

Q*[(1 + 3%/12)^24 - 1]/3%/12 = 14000 - 300*[(1 + 3%/12)^12 - 1]/3%/12*(1 + 3%/12)^24

Q = 409.86

Therefore, The smallest Q that will suffice is 409.86

8 0

3 years ago

Samsonite has declared a 90% stock dividend. At the time of the declaration, Samsonite's stock was selling for $250 per share. I

NeTakaya

Answer:

$131.58

Explanation:

The computation of the new stock price is shown below:

= Selling price of stock per share ÷ current number of shares

= $250 ÷ 1.90

= $131.58

Since the 90% dividend is declared. It means for each share 90% dividend is declared so after stock dividend, the number of shares would be

= 1 + 90%

= 1 + 0.9

= 1.9

We simply divide the selling price by the current number of shares

4 0

3 years ago

A written report must be sent to the texas department of public safety within 10 days of a collision that

ratelena [41]

I believe the correct answer to fill in the blank is:

A written report must be sent to the texas department of public safety within 10 days of a collision that <u>“results in death, injury, or more than $1,000 damage to property”.</u>

8 0

3 years ago

Give two reasons why value of norminal GDP would increase ​

Give two reasons why value of norminal GDP would increase