Answer:
15.44 years
Explanation:
Using both excel rate function and financial calculator, the time taken to repay the debt can be computed thus:
Excel rate function:
=nper(rate,pmt,-pv,fv)
rate= interest rate=4%
pmt=yearly payment=c
pv=loan oustanding=-39000
fv=the balance after all payments should be zero=0
=nper(4%,3435,-39000,0)= 15.44 years
Financial calculate
PMT= 3435
RATE=4
PV=-39000
FV=0
CPT N=15.44 years
This means a payment of $3,435 per year for 15 years and $ 1,511.40 ($3,435*0.44) in the sixteenth year
When a government's expenditures on goods, services, or transfer payments exceed their tax revenue, the government has run a budget deficit. Governments borrow money to pay for budget deficits.
<h3>What is budget deficit ?</h3>
An overrun in spending over income results in a budget deficit, which can be a sign of a nation's financial stability. The phrase is frequently used to describe government spending rather than that of companies or people.
An annual financial statement of the government's proposed revenues and expenditures is known as a budget. The overall gap between government revenues and expenditures is known as the government budget balance, also known as the general government balance, public budget balance, or public fiscal balance.
A government budget deficit is denoted by a negative balance, and a surplus is denoted by a positive balance. For each level of government, a budget is created that accounts for public social security commitments.
The primary balance and interest payments on the total amount of accumulated government debt make up the government budget balance; the two together determine the budget balance.
To learn more about budget deficit refer :
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Answer:
the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.
Explanation:
A deficit can be defined as an amount by which money, falls short of its expected value.
In Financial accounting, deficit is usually as a result of revenue falling below expenses or expense exceeding revenue at a specific period of time.
For instance, if in a country liabilities exceeds assets or import exceeds export there would be a deficit in the financial account of the country.
This is simply as a result of a country having to import more goods and services than it is exporting to other countries in trade.
Generally, a deficit on the current account is because the value of goods and services exported is lower than the value of goods and services being imported in a particular country.
If the United States imports more than it exports, then the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus (all things being equal) because it is not selling its goods and services to other countries.
Answer:
Deadweight loss is $5000
Explanation:
Calculation to determine what deadweight loss is
First step is to calculate the Change in quantity
Change in quantity =2500-2000
Change in quantity=500 unit
Now let determine the Deadweight loss
Using this formula
Deadweight loss =0.5* Change in quantity *(Willingness to pay at the price ceiling -Price ceiling)
Let plug in the formula
Deadweight loss =0.5*500*(50-30)
Deadweight loss=250*20
Deadweight loss =5000
Therefore the deadweight loss is $5000
Answer:
$241
Explanation:
Of the six month tenor of the note, the period that falls into 2017 is 2 months (that is, November 1 to December 31). In addition, by default, interest rates are stated on an annual basis except indicated otherwise. Therefore, it is assumed that 8.5% rate indicated in the question is an annual rate.
The computation of the interest that falls into 2017 is as follows:
= 
= $17,000 * 8.5% * 2/12
= $240.83
= approx. $241.
