Answer:
Nominal GDP for year 2010 = $7,650
Explanation:
Nominal GDP measures the market value of all goods and services produced in an economy at current prices, normally in a year. Current prices are the prices of the year I want to know the GDP. In this case, our current prices are 2010 prices. To know the nominal GDP, we must multiply the quantities produced by their current prices:
Nominal GDP= 550*$3+6*$1000=$7,650
Answer:
a) Vertical thinking
Explanation:
Vertical thinking is a type of approach to problems that usually involves one being selective, analytical, and sequential,consists of using more of a conscious approach via rational assessment in order to take in information or make decisions.
Answer:
$205,000
Explanation:
We know that
The ending balance of retained earnings = Opening balance of retained earnings + net income earned - dividend paid
= $145,000 + $90,000 - $30,000
= $205,000
By considering the above formula, we can easily find out the ending balance of retained earnings by taking opening balance, net income and dividend amount
Answer:
You can spend $4,913.86 to buy a motorbike.
Explanation:
Giving the following information:
You were given $16,000 by a relative with no strings attached. You decide to pursue 2 goals: (1) buy a motorbike today and (2) buy a used car for $12,000 when you graduate college in 4 years. Your interest rate is 2% compounded annually.
To buy the car, you can separate in the present the amount of money required to reach $12,000 in 4 years. The rest of the money can be used to buy a motorbike.
First, we need to calculate the present value of $12,000 using the following formula:
PV= FV((1+i)^n
PV= 12,000/1.02^4= $11,086.14
16,000 - 11,086.14= $4,913.86
