Answer:
loan balance after 12 years = $185409.8
Explanation:
Loan principal = $200000
interest = 10% of principal
amount paid yearly = $21215.85
For 1st year
principal for the first year = $200000
required interest to be paid = 10% of 200000 = $20000
amount paid = $21215.85
Loan Balance after first year = (principal for first year) - (amount paid - 10% of principal ) = $198,784.15
For 2nd year
principal for the 2nd year = Loan balance after first year = $198,784.15
loan balance after 2nd year = 198784.15 - ( 21215.85 - 10% of 198784.15)
= $197568.30
same applies for the different years until the 12th year
using this formula :
Loan Balance after Nth year = [ Loan balance after (n-1) year - ( amount paid - 10% of loan balance after (n-1) year ) ]
Answer:
$2 trillion
Explanation:
In a closed economy GDP is $12 trillion
Consumption is $8 trillion
Government spending is $2 trillion
Taxes is $0.5 trillion
Therefore the investment spending can be calculated as follows
= $12 trillion - $8trillion-$2trillion
= $2 trillion
Hence investment spending is $2 trillion
Answer:
11.24%
Explanation:
Fisher equation:
(1 + nominal interest rate) = (1 + real interest rate) x (1 + expected annual inflation)
1 + nominal interest rate = 1.03 x 1.08
--> Nominal interest rate = 11.24%
Answer:
c. investment expenditures
Explanation:
The reason for this is that during business cycles investors gain trust in the economy during a boom and invest a lot and during a recession they lose trust in the economy and decrease their investment by a lot, where as a lot of consumption like food, medicine, petrol etc remains mostly unaffected by changes in business cycle. Also government spending does not fluctuate a lot during the course of a business cycle because government spending is either long term like development projects.
Answer: True
Explanation:
Cost-volume-profit analysis is refered to as the predictive tool that can be used for the determination of the profit consequences of the price changes, future cost changes, price and the volume of the activity changes.
It requires the management to classify all the costs as either fixed cost or variable cost with respect to production or sales volume within the relevant range of operations.
