Answer:
The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
Explanation:
The formula to compute the present value is shown below:
Future value = Present value × (1 + interest rate)^number of years
or Present value = Future value ÷ (1 + interest rate)^number of years
Let us take an example
Present value = $2,750
Rate = 5.25% ÷ 2 = 2.625%
Number of years = 1 year × 2 = 2 years
So, the future value
= $2,750 × (1 + 2.625%)^2
= $2,750 × 1.0531890625
= $2,896.27
It is done on semi annual basis. As we can see that the present value is less than the future value
Answer:
Gordon Company
Overhead Cost = $150,000 + ($52 x Direct Labor Hours)
Budgeted overhead cost For next month = $150,000 + ($52 x 8000)
=$ 150,000+ 416,000
Budgeted overhead cost For next month= $ 566,000
Budgeted overhead cost For next quarter =$150,000 + ($52 x 23,000)
=$ 150,000+ 1196,000
Budgeted overhead cost For next quarter = $ 1346,000
Budgeted overhead cost For next year =$150,000 + ($52 x 99,000)
= =$ 150,000+ 5148,000
Budgeted overhead cost For next year= $ 5298,000
If the inverse demand function for a monopoly's product is p = 100 2q, then the firm's marginal revenue function is 200 - 2q. Price becomes a function of quantity demanded in the case of an inverse demand curve. The inverse of a demand curve, this indicates that variations in the amount required cause changes in price levels.
The formula for calculating the demand curve for a product yields the graph of an inverse demand curve. The quantity demanded is a function of price on the demand curve. This aligns the horizontal axis with pricing, with quantity demanded on the vertical axis.
To learn more about demand curve, click here.
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Answer: $61,500
Explanation:
Jerry's adjusted basis in his partnership interest at the end of the year is determined by adding his cash contributions, long-term capital gain, and qualified dividends to the original tax basis.
There will also be deductions of the non-deductible expenses, ordinary loss and his share of the reduction in partnership debt.
Jerry's adjusted basis at the end of the year = ( 44,000 + 26,000 + 3,600 4,600) - ( 2,100 + 9,000 + 5,600)
= 78,200 - 16,700
= $61,500
First, we must classify fiscal policy, which may be contractionary when the government wants to cool the economy, or expansionary when the government wants to stimulate the economy.
In the 2008 crisis, the government increased its spending to stimulate the economy, so the government adopted an expansionary fiscal policy.
However, rising spending has made the state swell. The purpose of reducing the size of the state to balance the budget is a contractionary policy aimed at reducing the state's spending.
Both policies can stimulate the economy if done at the right time. In the context of the crisis, it makes sense to increase government spending. However, after the economy improves, to stimulate the economy, the state must have a balanced budget. This is essential for attracting private investment and increasing the economy's productivity.
