Answer:
The monthly payment n the motorcycle will be for 158.75 dollars
Explanation:
We need to solve for the PMT of an ordinary annuity:
PV 8,400 (loan)
time 60 months
rate 0.004216667 (5.06% annual divide into 12 months)
C $ 158.749
Answer:
a. Overstates Inflation.
In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.
b. Understated Inflation
Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.
c. Overstates Inflation
In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.
d. Accurate representation of Inflation
In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.
The total compensation cost pertaining to the restricted shares equals to the amount of $48 million.
<h3>What are
compensation cost?</h3>
Also known as compensation expenses, include the recruiting costs, salaries, payroll taxes, benefits and bonuses. They form the significant part of a company's operating costs, which means that it affects corporate profitability.
According to the scenario, we will calculate the total compensation cost pertaining to the restricted shares by using following formula. Total Compensation Cost Pertaining to the Restricted Shares:
= Common Share × Market Price Per Share
= 8 million × $6
= $48 million
Read more about compensation cost
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Answer:
internal rate of return is 20.463%
Explanation:
given data
Year Cash Flow
1 $48,000
2 $46,000
3 $41,000
equipment cost = $95,000
to find out
Determine the internal rate of return
solution
we consider here internal rate of return is x
so we can say present value of inflows = present value of outflows
equate here
$95000 =
solve it we get
x = 20.463 %
so internal rate of return is 20.463%
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