Answer:
Felicidad 80 million Jean
Arcadie 32 million Rye
Explanation:
To know which is the best in Rye production we haveto pick the one with the least opportunity cost (the country which producing Rye decreases less the production of Jeans)
Felicidad Rye opportunity cost 20/5 = 4 Jeans
Arcadia Rye opportunity cost 16/8 = 2 jeas
Arcadie will be the country with comparative advantage for Rye as it renounce to less units of Jeans than Felicidad
<em><u>The best country for jean production will be Felicidad</u></em>
4m x 20 = 80m jean
<em><u>The best country for Rye will be Arcadia</u></em>
4m x 8 = 32m Rye
Answer:
Total FV= $3,433,859.29
Explanation:
<u>First, we will calculate the future value of each equal annual deposit. Then, the ending value in 33 years of investment as a whole.</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV1= {3,500*[(1.137^6) - 1]} / 0.137= $29,648.89
FV2= {8,800*[(1.137^11) - 1]} /0.137= $199,476.80
FV3= {14,400*[(1.137^16) - 1]} /0.137= $714,882.03
<u>Now, the total future value:</u>
FV= PV*(1+i)^n
FV1= 29,648.89*(1.137^27)= 949,600.61
FV2= 199,476.80*(1.137^17)= 1,769,376.65
FV3= 714,882.03
Total FV= $3,433,859.29
Answer:
Accounts receivable to be reported at the end of 2019 = $1090000
Explanation:
Assuming that all sales are made on credit.
The opening accounts receivable were = $ 1200000
We add the credit sales made during the year to the opening balance of accounts receivable to reach at total accounts receivable.
Total accounts receivable = 1200000 + 6250000 = 7450000
We deduct the amount received from customers against these sales to reach at the closing balance for accounts receivables.
Closing balance Accounts receivables 2019 = 7450000 - 6360000 = $1090000
Answer:
Explanation:
a. Total surplus is the area bounded by points a, b, and c. To calculate total surplus, we use the following formula for the area of a triangle: Area = ½ × Base × Height. The area between the demand curve and the supply curve for the quantity ranging from 0 to 20 is the total economic surplus. This is a triangle with a base (best read off the price axis) of $80, which is the price difference at Q = 0, or between points a and c, and a height of 20 (the number of units purchased in equilibrium). Using these values, we have a total surplus of (1/2) × $80 × 20 = $800.
The consumer surplus is the area between the demand curve and the equilibrium price line. Here we have a base of $40 (the price difference between the demand schedule price at Q = 0, which is $85, and the equilibrium price of $45). The height of the triangle is once again 20 (the number of units purchased in equilibrium). Using these values, we have a consumer surplus of (1/2) × 40 × 20 = $400.
b. Deadweight loss is the difference in total surplus between an efficient level of output Q1 and a reduced level of output at Q2. We can calculate this as the area of a triangle bounded by points bde. The base of this triangle is the difference in prices at points d and e, or $55 – $35 = $20. The height of this triangle is given by the difference in the restricted level of output of Q2 = 15 and the efficient level of output Q1 = 20, or 5 units. Thus, the area of this triangle (the deadweight loss) is equal to (1/2) × $20 × 5 = $50. The remaining total surplus can be found by subtracting the deadweight loss from the original (efficient) total surplus. This is $800 (maximum total surplus) – $50 (deadweight loss) = $750.
c. The deadweight loss from overproduction is the difference in total surplus between an efficient level of output Q1 and an additional level of output at Q3. We can calculate this as the area of a triangle bounded by points bfg. The base of this triangle is the difference in prices at points f and g, or $59 – $31 = $28. The height of this triangle is given by the difference in the additional level of output Q3 = 27 and the efficient level of output Q1 = 20, or 7 units. Thus, the area of this triangle (the deadweight loss) is equal to (1/2) × $28 × 7 = $98. The remaining total surplus can be found by subtracting the deadweight loss from the original total surplus. This is $800 (maximum total surplus) – $98 (deadweight loss) = $702. Note here that we maximize total (producer + consumer) surplus by producing the equilibrium quantity, but we lose surplus from overproduction (inefficient use of resources).
Answer: 12.68%
Explanation:
The Effective Annual Interest rate is the nominal interest rate adjusted for the number of compounding periods a financial product will experience in a period of time which is usually a year.
The formula is,
Effective annual interest rate = (1 + (nominal rate / number of compounding periods)) ^ (number of compounding periods) - 1
Plugging in the figures would give,
EAR = (1 + 0.01) ^ 12 - 1
EAR = 1.01^12 - 1
EAR = 12.68%
You might notice that in the bracket I did not divide the 1% by 12. This is because the 1% was already given as the month's interest rate.
