Financial accounting, an asset is any resource owned by a business or an economic entity. It is anything that can be owned or controlled to produce value and that is held by an economic entity and that could produce positive economic value.
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Answer:
Clarissa needs to fund the growing perpetuity by $166666.67
Explanation:
A perpetuity is an investment that will give a future series of infinite payments so if the perpetuity gives you a periodic growth rate then you find the difference between the interest rate and the growth rate then use the perpetuity formula which is:
Pv = C/(i-g)
where Pv is the present value of the perpetuity which will be the initial investment.
C is the periodic payments that will be received in future in this case $5000
i is the interest rate given for the perpetuity which is 8%
g is the growth rate per fixed period which is 5%
thereafter we substitute on the above mentioned formula:
Pv= $5000/(8%-5%) then compute
Pv = $166666.67 which will be the initial investment for Clarissa to be paid $5000 per year until she dies.
Answer:
A decrease in the price of unsliced bread, which people consider a substitute for sliced bread.
Answer:
a. $30,000.
Explanation:
Willingness to pay is the highest amount a consumer would be willing to pay for a good or service. In this example, the willingness to pay is $50.
Consumer surplus is the difference between price of a product and the willingness to pay.
To calculate the total consumer surplus , refer to the attached image, the consumer surplus is the shaded triangle.
The total consumer surplus = 1/2 base × (height)
The height is the difference between the willingness to pay and the price of the wine = $50 -$30 =$20
The base is the total quantity purchases at $30 =
1/2 × 3 × ($20) = $30
There are 10,000 consumers, therefore consumer surplus =$30,000
I hope my answer helps you.
