Answer:
see explanation
Explanation:
The most they should invest on January 1, 2020 is called the Present value Amount. Thus calculate the Present Value.
A market index is a resulting value created from the combination of several stocks and other investment vehicles presenting its total value against a base value at a certain period. It is used to show the whole stock market at the same time keeping track with the way the market changes overtime. The practice of tracking the value of the stock market over a period of time can be used to benchmark to make a credible comparison of stock returns.
Lorna makes an advance rent payment of $36,000 on January 1. These are the outcomes of this transaction. decreasing cash and increasing rent.
Cash in economics refers to currency in its actual, physical form, such as coins and banknotes.
Cash is defined in bookkeeping and financial accounting as current assets made up of money or money equivalents that may be obtained instantly or almost immediately (as in the case of money market accounts). Cash is viewed as a tool to either prevent a decline in the financial markets or as a reserve for payments, in the event of a structural or accidental negative cash flow.
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Answer:
Kelli can deduct up to $6,000 in expenses from her net income, so her net income for this year would be $0. She could have deducted an even larger amount if her net income had been higher (up to $12,000 in deductions), since you can only deduct up to the amount of your net income.
If a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
Given that a $1,000 increase in income leads to an $800 increase in consumption expenditures.
We are required to find the marginal propensity to consume.
Marginal propensity to consume is the ratio of increase in consumption and the increase in income. It is also known as MPC.
MPC=ΔC/ΔI
ΔC=Change in consumption
ΔI= Change in income.
MPC=800/1000
=0.8
Hence if a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
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