Answer:
Arithmetic average rate of return = 9.30 %
geometric average annual rate of return = 8.58%
correct option is A 9.30 % and 8.58%
Explanation:
given data
beginning share price = $50
time = 3 year
end year 1 prices = $62
end year 2 prices = $58
end year 3 prices = $64
to find out
arithmetic average annual rate of return and the geometric average annual rate of return
solution
we get here return for each period that is express as
Period 1 = 
...........1
Period 1 = 
Period 1 = 24%
and
Period 2 = 
Period 2 = Period 1 = 
Period 2 = -6.45%
and
Period 3 = 
Period 3 = 
Period 3 = 10.34%
so
here Arithmetic average rate of return will be
Arithmetic average rate of return = (24% + -6.45% + 10.34%) ÷ 3
Arithmetic average rate of return = 9.30%
and
geometric average annual rate of return will be here as
geometric average annual rate of return = 
- 1 ................2
geometric average annual rate of return = 
- 1
geometric average annual rate of return = 8.58%
Answer:
2. interest is the monetary charge for the privilege of borrowing money.
it works as a daily rate calculated by dividing your annual percentage rate by 365, and then multiplying your current balance by the daily rate.
3. benefits: buy on credit, interest-free cash withdrawals, discounts and cashbacks, improvement of credit score, insurance coverage.
drawbacks: debt, damaging the card, extra fees, limited use.
6. Annual percentage rate, annual fee, minimum repayment, cash backs, loyalty points/rewards and charges.
7. grace period is the period of time after the payment is due but before late fees, interest or other penalties start to accrue. Grace period can help you to plan large purchases in a way that maximizes your interest-free period.
8. pay the balance in full and on time, pay more than the minimum required, be mindful of your credit limit.
Explanation:
for the missing answers I couldn't see the picture. i hope this is helpful.
Answer and Explanation:
The computation of two different depreciation schedules is shown below:-
a. Using the Double-declining balance method
Year Equipment Cost Depreciation rate Amount
2005 $90,000 50% $45,000
2006 $45,000 50% $22,500
2007 $22,500 50% $11,250
2008 No depreciation as it is lower that straight line method that is $22,500 also we took the double rate of 25% so we consider 50%
b. Using the straight line method
Straight Line Depreciation Method:
$100,000 - $10,000
= $90,000
Year Equipment Cost Depreciation rate Amount
2005 $90,000 25% $22,500
2006 $90,000 25% $22,500
2007 $90,000 25% $22,500
2008 $90,000 25% $22,500
Depreciation rate is
= 1 ÷ 4 years
= 25
2. The double declining method reduced the net income while the straight line method increased the net icnome
Answer:
The correct answer is: $60.
Explanation:
Opportunity Cost is what a person sacrifices when they choose one option over another. It is also defined as the revenue of the chosen option over the revenue of the option that was forgone. It represents what was left on the table for deciding taking one option over another.
In Ben's case, the opportunity cost of going to the event represents what he could have earned working for three hours (<em>$10 x 3 = $30</em>). However, as he will have to pay for the event, he will lose $30 for the event ticket. Then, the total opportunity cost of going to the event is:
$30 + $30 = $60
The government has the capacity to influence the level of output in the short run by utilizing monetary and fiscal policy. There exists some disagreement as to whether the government should endeavor to stabilize the economy. The given statement is true.
<h3>What is the monetary and fiscal policy?</h3>
Monetary policy exists as a set of actions to control a nation's general money supply and achieve economic growth. Monetary policy strategies contain revising interest rates and changing bank reserve conditions. Monetary policy exists commonly categorized as either expansionary or contractionary.
In economics and political science, the fiscal policy exists as the use of government revenue assemblage and expenditure to control a country's economy. Fiscal policy exists the use of government spending and taxation to influence the economy. Governments typically employ fiscal policy to promote strong and sustainable growth and decrease poverty.
To create an economy more stable, active stabilization policy instruments that mitigate the effect of pessimism and optimism waves stand advocated. The waves of pessimism among consumers and businesses show the fall in aggregate demand. This fall in aggregate demand can be partly or fully offset by raising the money supply because the increase in money supply boosts aggregate demand.
The government has the capacity to influence the level of output in the short run by utilizing monetary and fiscal policy. There exists some disagreement as to whether the government should endeavor to stabilize the economy.
To learn more about monetary and fiscal policy refer to:
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