Answer:
The answer is C)$3,237
Explanation:
GDP = private consumption + gross investment + government investment + government spending + (exports – imports).
GDP C+ I + G + (X_M)
GDP= 2460 + 320 + 470 + (22-35) = 3237
Answer:
Calculate the true APR:
It is given that the compounding period is 12 as the payment is done monthly. The total loan amount is $1,000 with $100 monthly installments at an interest rate of 20%. Annuity is a stream of cash flows that continues for a given number of years. The interest rate is calculated by following method. Use the following formula to calculate the present value:
Where,
c —) Monthly payment
r —> Interest rate
t —> Compounding period
Now,
![1000 = 100[\frac{1}{r}-\frac{1}{r(1+r)^{12} }]](https://tex.z-dn.net/?f=1000%20%3D%20100%5B%5Cfrac%7B1%7D%7Br%7D-%5Cfrac%7B1%7D%7Br%281%2Br%29%5E%7B12%7D%20%7D%5D)
We cannot determine the exact value of interest of annuity. Using the trial and error method we can determine the interest rate. We can use the TVM (time value of money) keys in the financial calculator to calculate the value of 'r' as below:
Enter
N = 12
PV = -1000
PMT =100
FV = 0
Now press i and we should find that the monthly rate for this annuity(r) is 2.923% per month.
Effective interest rate is the annualized interest rate using compound interest. Multiply the monthly rate by 12 to obtain APR as below:
APR = Monthly rate x 12
Substitute the values in the formula:
APR = 2.923% x 12
APR = 35.076%
Hence, the APR is 35.076%.
Determine the effective annual rate (EAR):
It is the net annual return received. The monthly rate should be used to calculate the effective annual rate with the help of the formula below:



Effective annual rate = 0.41302 or 41.302 %
Hence, the effective annual rate is 41.302%.
Finally we may conclude that the true rate would be 20%, if $1,000 was borrowed today and $1,200 was paid back one year from today. It should be noted that the true rate must be greater than 20% because the twelve annual payment of $100 should be made before the end of the year.
Answer:
ROI = 10.5%
Explanation:
The ROI of a Division is the portion of then operating assets that is earned by as operating income by it. The higher the better.
Net operating assets = 28,600,000 - 600,000 = 28,000,000
ROI = Income/ Net operating assets × 100
ROI = 2,940,000/28,000,000 × 100
= 10.5%
Answer:
Promotion
Explanation:
The four Ps of of the marketing mix are Pricing, Promotion, Place, and Product.
Integrated marketing communications is part of promotion.
Promotion is defined as the act of increasing awareness about a product or service to the target market with a view of increasing sales. It involves communication beneficial information of a product to the buyer.
Integrated marketing communications which is the process of employing all promotional tools to work in harmony.
Therefore it represents promotion in the marketing mix
Answer:
9%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of common stock x Weightage of common stock ) + ( Cost of preferred stock x Weightage of preferred stock ) + ( Cost of debt ( 1- t) x Weightage of debt )
As WACC is calculated using Market values.
Company Value = 100%
Value of Debt = 28%
Value of Debt = 100% - 28% = 72%
WACC = ( 10.54% x 72% ) + ( 5.27% x 28% )
WACC = 7.59% + 1.48% = 9.07% = 9% (rounded off)