Answer:
Average investment(denominator) = $113,000
Explanation:
<em>Annual rate of return is the average annual income as a percentage of average investment
. It is the proportion of the average investment that is earned, on the average, as annual income.</em>
Annual rate of return = annual net income/ average investment
Average investment =( Initial,cost + scrap value)/2
Average investment = (220,000 + 6,000)/2= $113,000
Average investment(denominator) = $113,000
Answer:
It's C
Explanation:
Your net worth isnt money you can spend its how much money your worth
Answer:
Results are below.
Explanation:
Giving the following information:
Present value(PV)= $7,000
Number of periods (n)= 4 years
Interest rate (i)= 8% annually
<u>To calculate the future value of the investment, we need to use the following formula:</u>
FV= PV*(1 + i)^n
FV= 7,000*(1.08^4)
FV= $9,523.42
<u>Now, the interest earned:</u>
Interest earned= FV - PV
Interest earned= 9,523.42 - 7,000
Interest earned= $2,523.42
In a free market system, decisions about what and how much is produced are made by the producer.
<h3 /><h3>What is a Market?</h3>
A market is a place where buyer and seller. They exchange goods and services, for a barter or for an agreed price.
Free market system is a type of market which is ideal for the seller, as there is less intervention by the government, also the property is private, the seller have the choice to make decisions. There is competition also which makes it an ideal market for the buyer too.
The autonomy is with the seller about setting the prices and other business matters which enables good interest and motivation for the seller/ the owner of the business/ the participant in the free market.
In a free market it is the choice of the producer to take decision about what and how much of the produced is to be made.
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