Answer:
(b) 2.08
Explanation:
Using caclulator and inputs as present:
n = 10
I/Y = 7.5/2
=3.75
pmt = 40
FV = 1000
CPT PV = $1020.53
Now we shall create an amortization schedule:
Period pmt Interest End balance Difference(Premium amortized)
1 $40.00 $38.27 $1,018.80 $1.73
2 $40.00 $38.21 $1,017.01 $1.79
3 $40.00 $38.14 $1,015.14 $1.86
4 $40.00 $38.07 $1,013.21 $1.93
5 $40.00 $38.00 $1,011.21 $2.00
6 $40.00 $37.92 $1,009.13 $2.08
Therefore, The amount of premium amortized in the 6th coupon payment is $2.08
Answer:
$8000
Explanation:
Given that:
Adjusted basis of sport plane = $112,000
Sales price = $140,000
Down payment = $40,000
Balance paid in $20,000 installment for the nest 5 years
Gross income:
Gross income = sales price - adjusted basis
Gross income = $140,000 - $112,000
Gross income = $28,000
Based on the installment payment of $20,000:
140,000/20,000 = 7
Gross income = $28000/ 7 = $4000
With down payment being 40,000
In year 1, down payment of $40,000 was made, which is 2 times the yearly installment amount.
Hence gross profit in year 1 = $4000 × 2 = $8000
Answer:Shooting as much as you can and culling it later
Explanation:
Answer:
They have access to enough capital to operate in high cost industries
Explanation:
Answer:
c. will earn zero economic profits but positive accounting profits
Explanation:
A competitive industry is characterised by many buyers and sellers of homogenous goods and services.
There are no barriers to entry and exit of firms. If firms in a competitive industry earn economic profit in the short run, firms enter into the industry in the long run and economic profit falls to zero.
A competitive firm earns accounting profit but doesn't earn economic profit.
Accounting profit = Revenue - Cost
Economic profit = Accounting profit - Opportunity cost
I hope my answer helps you.
