Answer:
$3,900
Explanation:
A speed boat bought for $13,000 depreciates at 10% per annum compounded continuously. What is its value after 7 years?
Round the answer to nearest dollar.
Amount of depreciation per annum = 13,000 x 10% = $1,300
Amount of depreciation in 7 years = 1,300 x 7 = $9,100
Value of Speed boat after 7 years = 13,000 - 9,100 = $3,900
Answer:
absolute on grain: neither, both produce 10
comparative grain: Italy as renounce to less tonds of dates: 0.5 to 2.5
absolute dates: Niger 25 to 5
comparative dates: Niger as it cost 0.4 tonds of grain to produce 1 ton of dates.
Explanation:
For the absolute, we will check which yield the better number.
Fot the comparative, we will check the opportunity cost:
<em>output/potential output of another product</em>
<em />
opp cost grain in Italy: 5/10 = 0.5 tons of dates
opp cost grain in Niger: 25/10 = 2.5 tonds of dates
opp cost dates in Italy: 10/5 = 2 tonds of grain
opp cost dates in Niger 10/25 = 0.4 tonds of grain
Answer:
False
Explanation:
Correlation tells you if there is association between two or more variables. Regression analysis model allow you to predict one variable from the other.
Answer:
According to the risk of default from lowest to highest:
1. U.S. Treasury bonds.
2. Corporate bonds.
3. Junk bonds
Explanation:
Bonds are ways through which a governments and corporations are able to raise money in-order to finance the big projects.
It is issued to the public through a mapped out auction based in months or years validity. <em>And, by buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments.</em>
Revenue: $500,000
Shoes: $250,000
Shoe boxes: $1,000
Advertising: $500
Rent: $1,000
Depreciation: $25
Knowing she has sold 5,000 pairs, assume the company wants to launch a Black Friday promotion, where she would discount her shoes by 10%. How many more shoes would she have to sell to justify this promotion?
A. 25.13% more shoes
B. 20.08% more shoes
C. None of the above, but I could calculate this with the information I am given.
D. None of the above, I cannot calculate this with the information I am given.
Answer:
Option A. 25.13% more shoes
Explanation:
Cost Benefit analysis would be useful here to acknowledge what percentage of shoe sales is required to justify the promotion.
<u>The Benefit drawn before 10% promotion proposal:</u>
Revenue: $500,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $247,475
<u>The Benefit drawn before 10% promotion proposal:</u>
Revenue: $450,000
Shoes: ($250,000)
Shoe boxes: ($1,000)
Advertising: ($500)
Rent: ($1,000)
Depreciation: ($25)
Profit $197,475
Now we can calculate how much additional sales must be required to justify the promotion.
Sales Increase Required = (Initial Profit - Before Promotion) / Profit After Promotion
Sales Increase Required = ($247,475 - $197,475) / $197,475
Sales Increase Required = 25.31% which is close to option 1, hence Option 1 is correct here.
