Answer: $242,567.27
Explanation:
The $5,000 is an annuity as it is being paid every year and is a constant amount.
The value in 19 years is the future value of this annuity:
Future value of annuity = Annuity * ( ( 1 + rate) ^ number of years - 1) / rate
= 5,000 * ( ( 1 + 9.5%)¹⁹ - 1) / 9.5%
= $242,567.27
Answer: when using the accrual basis the income will be taxed when earned and when using the cash basis it will be taxed upon receipt of the payments
Explanation:
Answer:
B) increased nominal GDP from last year, but real GDP was unaffected.
Explanation:
Nominal GDP includes the total production of final and legal goods and services at current prices.
So Harry's Pizzas will increase the nominal GDP ($120,000 ˃ $100,000) but since we do not know the inflation rate, we can not determine how the real GDP was affected.
Answer:
The frictional unemployment rate is <u>3.1</u> percent and the actual unemployment rate (in this economy) is <u>7.3</u> percent.
Explanation:
natural unemployment rate = frictional unemployment + structural unemployment
frictional unemployment = natural unemployment - structural unemployment = 5.3% - 2.2% = 3.1%
actual unemployment rate = natural unemployment + cyclical unemployment rate = 5.3% + 2% = 7.3%
Frictional unemployment is voluntary and happens when someone quits his/her job in order to look for a better job. Structural unemployment happens when the skills of the workers do not match the requirements of the hiring companies. Cyclical unemployment takes place when the economy is in recession.
Answer:
c. Buyers have strong bargaining power and entry barriers are low.
Explanation:
In markets where buyers have stron bargaining power because options are abundant, and entry barriers are low (the reason why options are abundant), focused strategies that attempt at attracting customers with lower prices or product differentiation can be very important in maintaining a firm's market share, or improving it.
A lower cost can attract most types of customers because almost everyone is interested in saving as much as possible when they buy goods and services. However, product differentiation is another good strategy because if suppliers are many, people often need something special about the good to finally take the decision to purchase it.