............................... are important enough relative to the potential gains involved that THE PRIVATE SOLUTION IS NOT FEASIBLE.
Private solution may not be feasible for many reasons, such as transaction cost, coordination problem, unyielding attitude of the people involved, etc.
A two percent rise in interest rates would most likely affect new housing by making the price of the houses fall in the long run.
As the interest rate of possessing a mortgage rises, many individuals would not afford a house with a mortgage.
Subsequently, as people are shying away from possessing mortgages with high-interest rates, home investors and sellers need to reduce their house prices to attract buyers.
Hence, in this case, it is concluded that a two percent rise in interest rates would most likely affect new housing by making the price of the houses reduce in the long run.
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Answer:
The issue price of the bonds is $ 473,171 .
Explanation:
The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.
Future Value = Redemption present value (RPV) + Present value of interest (PVI)
RPV = 500,000 (1+10%)^-10 = $ 192,772 -A
PVI = 22,500 * Annuity factor =$280,400-B
Future Value = A + B = $ 473,171
Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+10%/2)^-20)/(10%/2) = 12.4622
Answer and Explanation:
Work In Process Inventory $96,000
Manufacturing Overhead $9,000
Raw Materials Inventory $105,000
Answer:
$17,400
Explanation:
<em>Equation to be used is as follows: </em>Beginning Prepaid Insurance Expense balance + Cash paid for insurance premium - Ending prepaid insurance balance = Insurance expense
$3,000 + Cash paid - $2,200 = $18,200
$800 + Cash paid = $18,200
Cash paid = $18,200 - $800
Cash paid = $17,400
So, the cash paid for insurance premiums during 2014 was $17,400