To solve use equation:
FVn = 6100 - investment amount after 11 years
PV = 2800 - initial investment amount
n = number of years
Fvn = Pv(1+i)^n
6100 = 2800(1+i)^11
(1+i)^11 = 6100/2800
(1+1)^11 = 2.17857143
i = (2.17857143)^(1/11)-1
i = 0.07335
i = 0.07335 x 100
i = 7.34%
The annual rate of return is 7.34%
Answer: It is important to establish limits through the partnership agreement, because by trust there could be disagreements in the future, some ideas for this agreement are the following:
I. The dividends resulting from the coffee shop profits must be distributed equally and will correspond to the amount resulting from discounting sales less costs and expenses.
II. Personal loans will not be allowed to the owners with the money taken from the coffee shop box.
III. It will not be allowed to consume the products of the coffee shop without paying what corresponds.
IV. Both owners will have the same rights to perform the duties of a manager.
An increase in the interest rate increases the opportunity cost of holding money and leads to a reduction in the quantity of money demanded
<h3>What is
opportunity cost ?</h3>
The opportunity cost of a particular activity option in microeconomic theory is the loss of value or benefit that would be incurred by engaging in that activity, as opposed to engaging in an alternative activity that offers a higher return in value or benefit.
The value of the next best alternative or option is referred to as the opportunity cost. This value may or may not be monetary. Value can also be measured using other criteria such as time or satisfaction. One formula for calculating opportunity costs could be the ratio of what you give up to what you gain.
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Budgeted Purchases = Sales units + Closing inventory - Beginning Inventory
= 5,000 + (1,000 * 130%) - 1,000
= 5,300 units
