From the problem statement it is clear that here we need to find out simple interest rate.
One do not get interest on any investment made at the end of tenure.
Putting this mathematically:
Let amount at the end of 5th year as A
Simple Interest for 5 years, SI = 750 *5
SI = 3750
Hence A = 10000 +3750
A= 13750
Let rate of return = R
Tenure t = 5
But,
A = P(1 + R*t/100)
13750 = 10000( 1+ R*5/100)
13750 = 10000 + 50000R/100
3750 = 500R
R = 3750/500
R = 7.5 %
Hence rate of return is 7.5% per annum (answer)
Answer:
B. The sales tax you pay when you fill your car up with gas is regress
Explanation:
Gasoline tax is regressive because everyone regardless of their income level pay the same amount of tax per gallon of gas purchased. A progressive tax means that people that have higher incomes will pay a higher tax rate, for example, federal income taxes. Every flat tax (same percentage for everyone) is regressive.
Answer:
1) The government prohibits gas stations from selling gasoline for more than $3.40 per gallon.
This statement is an example of price ceiling as the gas stations cannot raise their price above $3.40 but can sell it at any price lower than the ceiling price of $3.40. This is binding
2) Due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from doing so. This is neither a price ceiling or floor as government isn't directly affecting the price with their policy
3) The government has instituted a legal minimum price of $3.40 per gallon for gasoline. This is an example of price floor and is binding. The reason it is a price floor is because the petrol stations cannot charge a price below $3.40 but can charge any price above the floor price of $3.40
Explanation:
Answer: rigid customer base
Explanation: The reason behind the ongoing success of radio industry is that over 90% of individuals in the world, especially in western countries, still listens to audio in their free time once or twice in a given week, thus making it an attractive platform for different business entities to advertise their products.
Thus, because of that rigid customer base, the radio industry is still making millions.
An increase from 16k to 20k is a 20%increase proportionate to production
