In Australia, the government has decided that it is cheaper to stop people smoking than to treat their smoking-related illnesses and deal with lost productivity, etc. So the government has put astronomical taxes on cigarettes, to deter people from smoking, while a the same time refusing to pay for smoking-related illness treatments.
Answer:
The interest expense will be recorded when the first interest payment is made $3720
Explanation:
Interest expense = issue price x market rate x n/12
= 62000 x 12 x 6/12
= $3720
Answer:
Empirical Rule or 68-95-99.7% Rule
Approximately 95% of the data fall within two standard deviations of the mean.
Based on the information given, it should be noted that Carmen should take out a loan with a loan of 5 years period.
<h3>
What loan option should be chosen?</h3>
It should be noted that in the cost and benefits analysis, it would be better to take out the shorter loan period because the automobile price decreases in the following year after it has been bought.
However, in this case, Carmen will not be able to fulfill the 4-year loan payment for each month, because the average auto loan interest rate for a person with a 620 credit score is 9.48%.
Therefore, it would be a safe decision to choose the 5-year loan because Carmen will still be able to pay the loan interest.
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Answer: 1.67
Explanation:
From the question, we are informed that the currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4.
The money multiplier is calculated as:
(1 + the currency drain ratio)/( the reserve ratio + the currency drain ratio)
= (1 + 0.5)/(0.5 + 0.4)
= 1.5/0.9
= 1.67
Therefore, the money multiplier will be 1.67.