Answer:
The equal monthly payment is $3,068.20
Explanation:
The equally monthly payments can be computed using the pmt formula in excel.
=pmt(rate,nper,pv,fv)
rate is the monthly nominal rate of 6%/12=0.5%
nper is the number of monthly payments required which is 4*12=48
pv is the current value of the bicycle of $170,000
fv is the worth balance of the financing arrangement at the end of fourth year that should be paid once ,$50,000 balloon payment
=pmt(0.5%,48,-170000,50000)
=$3,068.20
Note that the interest is one month interest rate as the payment is expected monthly.
Answer:
Variable costs per unit increase as a company produces more units of production.Total fixed cost is constant over all units of production.
Explanation:
there is positive relation between variable cost and production, increase in production will increase the cost and vise visa.
there is inverse relation between fix cost and production higher the production lower the fix cost will be apportioned per unit but the total cost will remain the same
Example :
Case-1 Case-2
Production 50000 100000
V.Cost 100 p.u 100 100
Fix Cost 100000 100000
total cost
Variable cost 5000000 10000000
Fix Cost 100000 100000
variable cost is increasing due to increase in production in both cases fix cost will remain the same because no matter how many products company produce fix will remain the same.
Answer:
c. GDP increases by $22.00.
Explanation:
The GDP is the sum of all final goods and services produced in an economy within a given period.
GDP = Consumption spending + Investment + Government Spending + Net Export
Only final goods and services are included in the calculation of GDP.
The wheat purchased by Wholesome Wheat Bakery is an intermediate good whuch is still used in the production of bread. Therefore, it isn't included in the calculation of GDP.
Bread is a final good and it's included in the GDP. Therefore, GDP increases by $22.
I hope my answer helps you.
D. Reading everything very quickly
