Formula for the monthly payment:
M = P * r * ( 1 + r )^n / (( 1 + r )^n + 1 )
where: P = $100,000 r = 0.12 : 12 = 0.01 n =12 * 5 = 60
M = 100,000 * 0.01 * ( 1 + 0.01 )^60 / (( 1 + 0.01 )^60 + 1 ) =
= 1,000 * ( 1.01 )^60 / (( 1.01 )^60 + 1 ) =
= 1,000 * 1.8167 / 0.8167 = 1,000 * 2.22444 =
= $2,224.44
The monthly payment is $2,224.44.
Answer:
False
Explanation:
It does not necessarily means that when a firm gets a normal rate of return, it earns economic profit also, as it depends on various factors:
- In the short run every firm aims to recover its variable cost, and in it's long term duration to recover its total cost, but it does not necessarily conclude that the return will attain the level of earning economic profit.
- Normal rate of return is based on competitive market, as an average rate of return on market, but if the investment is made from borrowed funds, it might be that the company is not able to pay the cost of borrowing in that case it is even after attaining the normal rate of return it will not earn economic profit.
Answer:
D. society’s scarce resources are used to produce products that align with consumer preferences
Explanation:
Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.
Answer:
b. can be calculated by modifying the break-even equation.
Explanation:
As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.
It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.
Adjust the contribution margin per unit and units sold based on an expected sales promotion.
Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.
Alter the contribution margin for the effects of changing to a just-in-time production system.
If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,
