Answer:
7.49%
Explanation:
n = Number of payment periods = 3
P = Total lease payment = Annual lease payment * Number of period = $20,700 * 3 = $62,100
FV = fair value of the machine = $50,000
Implicit rate = [($62,100 / $50,000)^(1 / 3)] - 1 = 0.0749, or 7.49%
Answer:
B. The economy would have enjoyed a much higher level of output in the mid-2000s.
Explanation:
This choice is based on the theory of production capacity, which tries to explain that industrial capacity of companies increases with increased supply of production resources. Capital is one of the production resources which is increased with increased supply of US dollars. Increased money supply increases the capital which banks can lend out to companies to increase their production capacity.
On the other hand, where this to be based on the theory of inflation, a different answer would have been produced. The theory of inflation recognizes that the average inflation rate increases proportionately to a percentage increase in money supply, among other factors that influence inflation rates.
That the price level in 2005 would have been about 28 percent higher than what it actually reached in that year is highly speculative. And D is certainly not the correct option, because the economy's output is increased with increased production capacity caused by increased money supply.
Answer:
the initial principal balance is $100,000, but it will gain 2% simple monthly interest during 16 months = $100,000 + ($100,000 x 2% x 16) = $132,000
the mortgage loan's principal = $132,000
APR = 12%
n = 30 years or 360 monthly payments
1) using a loan calculator we can determine that the monthly mortgage payment (only principal + interest) = $1,357.77
2) since they will make 360 monthly payments, they will pay in total = $1,357.77 x 360 = $488,796.71
in total they will pay $$356,796.71 in interest
All that information gives you three points to make the graph.
Point 1:
At the price of $10, the offer is 2*1,000 shoes => (10, 2,000)
At the price of $25, the offer is 10*1,200 shoes => (25, 12,000)
At the price of $40, the offer is 10*1400 + 4*500 => (40, 16,000)
Then you have three points. You can check that their are not aligned because when you increase the price $15 from 10 to 25 the offer increases in 10,000 shoes; but when you increase the price $15 from 25 to 40, the offer increases 4,000.
To draw the grpah:
- use a perpendicular coordinate system with the price in the horizontal axis and the offer in the vertical axis,
- lable the horizontal axis with the prices from 10 to 50 and the vertical axis with the offers from 1,000 to 18,000.
- draw the three calculated points (10; 2,000) , (25; 12,000) and (40; 16,000)
- draw a curved line that passes through the three points.
Ther you have the graph.
