Answer:
D. 321,600.
Explanation:
Present value is the current value of a future amount that is to be received or paid out.
Given:
Present value, P = $60000
Present value of ordinary annuity for the remaining 6 years = 4.36
The Present value, PV of the note is equal to the first payment + the Present value of ordinary annuity (all at 10%) of the remaining six payments
Sales revenue = $60000 + (60,000 × 4.36)
= $60000 + $261,600
= $321,600
Thus, sales revenue of $321,600.
Answer:
$5, 200 bushels of wheat
Explanation:
From the diagram the price support was at $6 per bushel, however if the government removes the price support or if there was no price support, then the price of the wheat will be $5 for a bushel. And in order to maintain the price support, from the diagram below, it is expected that the government would have to purchase 200 bushels of wheat.
Answer:
Annual depreciation=$188,000
Explanation:
Giving the following information:
Purchasing price= $1,000,000
Salvage value= $60,000
Useful life= 5 years
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,000,000 - 60,000)/5
Annual depreciation=$188,000
We are given
P = $15,000
i = 8% per year
n = 9 months
First we convert the interest to per month
i = 8%/12 = 0.67%
And we solve for the future worth of the note
F = P ( 1 + i)^n
F = 15000 ( 1 + 0.0067)^9
F = $15929.12
The value of the note is $15929.12<span />
Answer:
A.overstate; substitution
Explanation:
Consumer Price Index (CPI): is a measure that examines the weighted average of prices of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking the average of the price changes for each item in the predetermined goods. Changes in the CPI are used to assess price changes associated with the cost of living therefore the CPI is used economist for identifying periods of inflation or deflation.
when we say the CPI overstate inflation; it is because of:
Substitution bias (when the price of a product in the consumer basket increases substantially, consumers tend to substitute lower-priced alternatives; Therefore, it tends to overstate inflation due to a lack of accountability
) and;
Quality bias (over time, technological advances increase the life and usefulness of products).
