Answer:
1.5
Elastic
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
Income elasticity of demand = percentage change in quantity demanded / percentage change in income.
6 / 4 = 1.5
The income elasticity of demand is elastic
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The amount that must be put aside now is $458,796.85.
<h3>How much should be put aside now?</h3>
The first step is to determine the future value of the annuity:
Future value = yearly payment x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- r = interest rate = 6%
- n = number of years = 20
$40,000 x [(1.06^20) - 1] / 0.06 = $1,471,423.65
Now, determine the present value of this amount: $1,471,423.65 / (1.06^20) =$458,796.85
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Answer:
Explanation:
First, find the YTM of the bond using the following inputs on a financial calculator;
N = 15*2 = 30 semiannual payments
PV= -925
Semiannual coupon payment; PMT = (8%/2)*1000 = 40
FV = 1,000
then CPT I/Y = 4.458%
Annual rate = 4.458% *2 = 8.92%
Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;
N = 10*2 = 20
Semiannual coupon payment; PMT = 40
FV = 1,000
Semiannual rate; I/Y = 4.458%
then CPT PV = 940.206
The price at year 5 will be $940.21
A useful way of standardizing financial statements is to choose a base year and then express each item relative to that amount.
This is further explained below.
<h3>What is
a financial statement?</h3>
Generally, Financial statements are written documents that represent a company's commercial operations as well as its financial performance within a certain period of time.
Audits of financial accounts are often conducted by government agencies, accounting firms, and other organizations for the objectives of ensuring their correctness and meeting the requirements for taxation, financing, and investing.
In conclusion, Selecting a base year and then expressing each item in terms of its relationship to that amount is a practical strategy for standardizing financial statements.
Read more about financial statements
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Answer:
3.4%
Explanation:
The computation of the Purple Swift’s paint capacity cushion is shown below:
Time to paint 10 birdhouses (45 × 10 ÷ 60) 7.5 hours
Changeover time 1 hours
Total Operations time per lot (7.5 + 1) 8.5 hours
Hours available per year (8 × 220) 1760
Capacity (number of lots each year) (1760 ÷ 8.5) 207.06
Capacity (number of birdhouses each year) =207.06*10 2070.6
Actual Production given 2000
Utilization (2000 ÷ 2070.6) 96.6%
Capacity cushion = 100% - Utilization
= 100% - 96.6%
= 3.4%
