Answer:
a. Single
b. Compounding
Explanation:
Lump sums refers to a single payment that is made to a person or an organisation at a specified time. This is different from installment payment that is made as a number of smaller payments over a specified period of time.
Compounding refers to a method of reinvesting earnings or profits from assets or investment with aim of generating extra earnings over time.
Compounding is the foundation of Future Value (FV) as it considers the present value (PV) of an asset, the total number of years, how frequent the compounding takes place in a year, and the annual interest rate as given in the formula in the question which represented as follows:
FV = PV(1 + I)^N
Where;
FV = Future Value
PV = Present Value
I = annual interest rate
N = number of years
Therefore, single payments are known as lump sums. We can solve for the future value or the present value of a lump sum as we discuss below.
Finding the future value (FV), or compounding, is the process of going from today's values to future amounts.
Answer:
794 composite units.
Explanation:
Calculation to determine the firm's break-even point in composite units
First step
Contribution Margin per Composite Unit:
Youth model $700
($140× sales mix of 5 )
Adult model model $4,365
($485× sales mix of 9)
Recreational model $3,210
( $535 × sales mix of 6 )
Contribution Margin per Composite Unit=8,275
($700+$4,365+$3,210)
Now let determine the Break-even Sales in Composite Units using this formula
Break-even Sales in Composite Units = Total Fixed Costs/Contribution Margin per Composite Unit
Let plug in the formula
Break-even Sales in Composite Units = $6,570,000/$8,275
Break-even Sales in Composite Units = $793.9
Break-even Sales in Composite Units = 794 composite units
Therefore the firm's break-even point in composite units is 794 composite units.
Answer:
$48000
Explanation:
Given: Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000.
Current Liability: It is a financial obligation of the company that need to be paid in a short period of time, within one year or within normal operating cycle.
Now, computing current liabilities from the given information.
Current liability= 
⇒ Current liability= 
∴ Current liability= $48000
Hence, Pioneer's total current liabilities is $48000.
Answer: $460 billion, but the effect would be larger if there were an investment accelerator.
Explanation:
If the MPC = 0.75 and there is no investment accelerator or crowding out, then a $115 billion increase in the government expenditures would result in the shift in the aggregate demand curve right by:
= $115 billion ÷ (1 - 0.75)
= $115 billion ÷ 0.25
= $115 billion × 1/0.25
= $115 billion / 0.25
= $460 billion.
Therefore, there'll be a shift in the aggregate demand curve right by $460 billion, but the effect would be larger if there were an investment accelerator
