Answer:
a. We observe the price of Jiffy peanut butter decreases and the quantity demanded of Smucker's strawberry jam increases: COMPLEMENTS, since a decrease in the price of Jiffy peanut butter increased the quantity demanded of Smucker's strawberry jam.
b. A razor and a blade: COMPLEMENTS, since they work together, a razor is useless without a blade and vice versa. An increase in the price of either of them should decrease the quantity demanded of both products, and vice versa.
c. A Panasonic CD player and a JVC CD player: SUBSTITUTES, since an increase in the price of Panasonic CD players will increase the quantity demanded of JVC CD players.
d. You observe that your significant other adds 1oz of cream to each cup of coffee: COMPLEMENTS, both you and your significant other complement each other, and cream and coffee are married for life. An increase in the price of cream reduces the quantity demanded of coffee and vice versa.
Answer:
The monthly loan payment will be $ 93.33.
Explanation:
Given that Corey obtained an installment loan of $ 1,000, and the APR is 12%, and I must repay the loan in 12 months, to determine how do I find the monthly payment, the following calculation must be performed:
(1000 x 1.12) / 12 = X
1120/12 = X
93,333 = X
Therefore, the monthly loan payment will be $ 93.33.
Answer:
The margin call will be $6,000.
Explanation:
Since there is no debit balance in the customer's margin account, it implies that the customer is not owing the broker on margin. The additional purchase of the 100 shares of XYZ necessitates the margin call by the broker for the customer to fund his margin account by paying additional funds worth $6,000 to cover the purchase of XYZ shares by the broker on his behalf.
A margin account is an account maintained by a broker on behalf of his customer through which the customer is able to buy and sell securities using his own funds and the broker's. The implication is that the customer's equity in the account is equal to the market value of the securities minus the borrowed funds from the broker.
Answer:
8.30%
Explanation:
The formula to compute the expected rate of return is shown below:
= Real risk-free rate + future rate of inflation + default risk premium + liquidity risk premium + maturity risk premium
= 3.50% + 4.80% + 0 + 0 + 0
= 8.30%
We simply added the real risk-free rate and the future rate of inflation so that the correct rate of return can come
We consider all the information which is given in the question as it is relevant for the computation part
Answer:
The options are given below:
A. 50%
B. 60%
C. 70%
D. 80%
The correct option is C.
Explanation:
From the question above, we are asked to calculate Oliver's gross profit percentage.
- Gross profit percentage is calculated by dividing the gross profit made from the sale by the contract price.
- Gross profit is calculated by subtracting the installment sale basis from the selling price.
- Contract price refers to the total of all the principal payments that are to be received on the installment sale.
Oliver's adjusted basis at the time of sale is:
$30,000 ($5,000 + .50 ($50,000))
His gross profit percentage is:
70% [($100,000 - $30,000) ÷ $100,000].
