Answer:
1) Real GDP = Base year price X Current year quantity
Real GDP for 2009 using 2009 as base year = 5 X 100 + 40 X 20 = 500 + 800 = 1300
2) Real GDP for 2009 using 2010 as base year = 5.25 X 100 + 24 X 20 = 525 + 480 = 1005
3) Real GDP for 2010 using 2009 as base year = 5 X 110 + 40 X 30 = 550 + 1200 = 1750
4) Real GDP for 2010 using 2010 as base year = 5.25 X 110 + 24 X 30 = 577.5 + 720 = 1297.5
5) GDP growth rate using 2009 as base year = (Real GDP for 2010 - Real GDP for 2009)/Real GDP for 2009 X 100
= (1750 - 1300)/1300 X 100 = 450/13 = 34.61
6) GDP growth rate using 2010 as base year = (1297.5 - 1005)/1005 X 100 = 29.10
7) Arithmetic average of growth rates = (34.61 + 29.10)/2 = 63.71/2 = 31.85
Answer:
D. Loans are the largest assets and deposits are the largest liabilities
Explanation:
Banks represent financial institutions wherein customers can either save their money or borrow money. Banks ideally serve as an intermediary between borrowers and lenders.
Banks avail funds from the lenders who want to deposit and keep their money safe. Such depositors are paid an interest on the money deposited. Out of the pool of funds created through such deposits, a bank lends these funds to the borrowers who are in need at a rate higher than the rate it provides to it's depositors.
Thus, the money granted as loan to the borrowers by a bank represent it's largest assets, which it will receive in future. While deposits, which the bank has to return to the depositors upon demand, represent a bank's largest liabilities which it must meet.
Answer:
Munich and Tokyo
Explanation:
Let's first evaluate the cost in dollars for a beer in each city.
New York: 6 dollars (easy, it's given)
Tokyo: 5 dollars
Munich: 7.5 dollars
Cancun: 7 dollars
So, the most expensive beer is in Munich and the cheapest one is in Tokyo.
Answer:
Compute present value of periodic lease payments.
Annual interest rate is 5% (Semi-annual is 2.5%)
Lease period is 2 years (4 semi annual lease terms)
Present value of periodic lease payments = lease rental * PVAF (r,n)
= $59,000 * PVAF (2.5% , 4)
= $59,000 * 3.76197
= $221,956
Journal Entries are in attachment
Answer:
$8750.87
Explanation:
This is compound interest problem. The formula used to solve this would be:
Where
F is the future value (what we want, after 3 years)
P is the initial value (given 6900)
r is the rate of interest per period
here, 8% per year, so 8/4 = 2% per period (since compounded per quarter)
t is the time (3 years and compounding per year so times of compounding is 3*4 = 12), so t = 12
Substituting, we get our answer:
<u>There will be about $8750.87 at the account at the end of 3 years!</u>