Answer:
Depreciation = 11,760
Explanation:
given data
purchased = $60,000
freight charges = $2,800
installing and testing = $8,000
salvage value = $12,000
time period = 5 year
solution
we get Cost of Equipment that is
Cost of Equipment = 60,000 + 2,800 + 8,000
Cost of Equipment =70,800
so Depreciation will be here
Depreciation = Cost of Equipment - salvage value ÷ time period
Depreciation = 
Depreciation = 11,760
Answer:
D) Increase the money supply by buying government securities
Explanation:
When public investment crowds out private investment, it is because the government is making use of all, or most of the supply of loanable funds in the economy. This causes the interest rates to rise, making it more expensive for the private sector to borrow and invest.
The Central Bank can step in and help solve this problem by lowering the interest rate. It can do so by buying government securities. The money used to buy these securities enters the economy, making the money supply grow, including the supply of loanable funds, causing the interest rate to fall.
The real interest rate = 5%
Inflation rate = (CPI 2013 - CPI 2012) / CPI 2012
= (231 - 220) / 220
= 11 / 220
= 0.05 or 5%
Real interest rate = nominal interest rate - inflation rate
= 10% - 5%= 5%
Hence, the real interest rate is 5%
<h3>What is a loan?</h3>
A loan is a financial instrument that allows you to borrow money from a lender in order to finance a purchase or investment. The amount of the loan can be based on specific terms and conditions, and usually requires either an down payment or collateral.
Once you have submitted the application, your lender will contact you for additional information, including your credit history and other relevant details. After reviewing this information, the banker may authorize or decline your loan request according to their discretion. If approved, you will then need to provide documentation such as an applicant profile form (IFS), proof of income/employer verification letter(s), bank statement showing funds available in account etc., before closing the transaction.
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Answer:
$6,600
Explanation:
The units-of-production depreciation expense = (miles driven in year 2 / total estimated miles) × (cost of asset - Salvage value)
(20,000 / 100,000) x ($41,000 - $8,000)
0.2 x $33,000 = $6,600
I hope my answer helps you
Answer:
Laurel bond will decrease by 7.72%
Hardy bond will decrease by 15.8%
Explanation:
current bond price $1,000
interest rate 8%
Laurel bond matures in 5 years, 10 semiannual payments
Hardy bonds matures in 16 years, 32 semiannual payments
if market interest increases to 10%
Laurel bond:
$1,000 / (1 + 5%)¹⁰ = $613.91
$40 x 7.7217 (annuity factor, 5%, 10 periods) = $308.87
market price = $922.78
% change = -7.72%
Hardy bond:
$1,000 / (1 + 5%)³² = $209.87
$40 x 15.80268 (annuity factor, 5%, 32 periods) = $632.11
market price = $841.98
% change = -15.8%
