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3 years ago

You deposit $1,500 in a bank where you have a savings account. The bank

1 answer:

8 0

Interest rate risk

Interest rate risk is the risk that arises for fixed-rate investments from fluctuating interest rates. How much interest rate risk a fixed-rate investment has depends on how sensitive its price is to interest rate changes in the market.

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If the price of product x rises, then the resulting decline in the amount purchased will:_____.

MissTica

If the price of product x rises, then the resulting decline in the amount purchased will<u> increase the marginal utility of this good.</u>

The difference in overall utility that results from consuming one extra unit of a good is known as marginal utility. Economists utilize the idea of marginal utility to estimate the quantity of a good that consumers will buy.

When the overall utility is increased by the consumption of an additional item, positive marginal utility occurs. On the other side, negative marginal utility arises when the overall utility is reduced by the consumption of one extra unit. Progressive taxation are frequently defended using the law of diminishing marginal utility.

Negative, zero, or positive marginal utility are all possible.

Hence, option B is the correct answer

To learn more about marginal utility here,

brainly.com/question/15561406

#SPJ4

4 0

2 years ago

On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at

OLEGan [10]

Answer:

a. Debit Depreciation expense $6,400

Credit Accumulated depreciation $6,400

b. $33,600

Explanation:

Depreciation is the systematic allocation of cost to an asset. It is given as

Depreciation = (Cost - salvage value)/estimated life

When accumulated over time, it is known as accumulated depreciation which is deducted from the cost to get the carrying amount of the asset.

Depreciation

= (100000 - 10000)/6

=$15,000

Between 2015 and start of 2019 is 4 years hence

accumulated depreciation at start of 2019

= $15,000 × 4

= $60,000

Net book value = $100,000 - $60,000

= $40,000

If the asset life is to be extended by 3 years, the remaining useful life changes from 2 to 5 years.

New depreciation rate

= (40,000 - 8000)/5

= $6,400

To record this for 2019,

Debit Depreciation expense $6,400

Credit Accumulated depreciation $6,400

The book value of the equipment at the end of 2019

= $40,000 - $6,400

= $33,600

4 0

3 years ago

The Gorman Group issued $970,000 of 13% bonds on June 30, 2021, for $1,042,973. The bonds were dated on June 30 and mature on Ju

omeli [17]

Answer:

Entries are given below

Explanation:

Cash should be recorded as an asset on the issuance of bonds and bonds should be credited as it is a liability for the company. Interest expense should be debited on a semiannual basis

June 30, 2021 ( issuance of bonds)

DEBIT CREDIT

Cash 1,042,973

Bonds payable 970,000

Premium on bonds payable 72,973

December 31, 2021 ( interest expense)

DEBIT CREDIT

Interest Expense 62,578

(1,042,973 x 12% x 6/12)

Premium on bonds payable 472

Cash 63,050

(970,000 x 13% x 6/12)

June 30, 2022 (interest expense)

DEBIT CREDIT

Interest Expense 62,550

(1,042,973-472) x 12% x 6/12)

Premium on bonds payable 500

Cash 63,050

(970,000 x 13% x 6/12)

5 0

3 years ago

Which living expense needs to be included in the budget of someone renting an apartment?.

scoundrel [369]

Answer:

insurance

Explanation:

a living expense that should be included in the budget when someone is going to rent an apartment should be the insurance

hope this helps

6 0

2 years ago

Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9

murzikaleks [220]

Answer:

d. 5.08%

Explanation:

We have to first calculate the YTM of the bond, and then apply the tax shield.

To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.

$C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\$

$46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\$

IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)

then we apply the shield tax to the IRR:

IRR x (1 - tax-rate) = Cost of debt

0.084656891 * ( 1 - 0.4) = 5.0794= 5.08

3 0

3 years ago