The function of money that solves the double coincidence of wants problem is the medium of exchange. The double coincidence of wants refers to the situation where two parties need to have a mutual desire for each other's goods or services in order to conduct a transaction.
This can be a significant barrier to trade, especially when there are many different goods and services involved.
Money solves this problem by acting as an intermediary in transactions. Instead of requiring a direct barter between two parties, money serves as a universally accepted medium of exchange that both parties can use to transact. Sellers are willing to accept money because they know they can use it to purchase goods or services they desire from someone else who accepts the same currency. Buyers are willing to use money because they know that sellers will accept it in exchange for goods or services.
By serving as a medium of exchange, money makes transactions more efficient because it eliminates the need for a double coincidence of wants. Money is widely accepted, making it easier to find trading partners and enabling individuals to specialize in producing goods or services that they are good at. It also facilitates trade across long distances and enables larger-scale economic activity, such as international trade.
In contrast, the other two functions of money, unit of account and store of value, do not directly solve the double coincidence of wants problem. A unit of account is simply a way to measure the value of goods and services, while a store of value allows people to save wealth over time. However, neither of these functions alone would enable the efficient exchange of goods and services that money provides through its role as a medium of exchange.
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The function of money that solves the double coincidence of wants problem is the medium of exchange. The double coincidence of wants refers to the situation where two parties need to have a mutual desire for each other's goods or services in order to conduct a transaction.
This can be a significant barrier to trade, especially when there are many different goods and services involved.
Money solves this problem by acting as an intermediary in transactions. Instead of requiring a direct barter between two parties, money serves as a universally accepted medium of exchange that both parties can use to transact. Sellers are willing to accept money because they know they can use it to purchase goods or services they desire from someone else who accepts the same currency. Buyers are willing to use money because they know that sellers will accept it in exchange for goods or services.
By serving as a medium of exchange, money makes transactions more efficient because it eliminates the need for a double coincidence of wants. Money is widely accepted, making it easier to find trading partners and enabling individuals to specialize in producing goods or services that they are good at. It also facilitates trade across long distances and enables larger-scale economic activity, such as international trade.
In contrast, the other two functions of money, unit of account and store of value, do not directly solve the double coincidence of wants problem. A unit of account is simply a way to measure the value of goods and services, while a store of value allows people to save wealth over time. However, neither of these functions alone would enable the efficient exchange of goods and services that money provides through its role as a medium of exchange.
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Which of the following statements about the different valuation methods of inventory is false? Select one: a. When product cost decreases over the period, FIFO results in the highest value of ending inventory. b. FFO reports a more accurate value of ending inventory than weighted average, as it is based on the most recent purchases. c. Weighted-average method smooths out purchase price changes and is fairly simple to administer. d. Specific identification provides the true value of ending inventory and COS but it is costly to implement and therefore not practical for items of small value.
B) FFO reports a more accurate value of ending inventory than weighted average, as it is based on the most recent purchases, is the misleading assertion concerning the various techniques of inventory valuation.
A method of handling the alteration of a data structure, typically a data buffer, where the oldest (first) item, or "head" of the queue," is processed first, is referred to as "first in, first out" (FIFO).
There are three methods used to value inventory. They include the FIFO (first-in, first-out), LIFO (last-in, first-out), and the weighted average cost method. Also, the specific identification method may be used when inventory items are unique or have individual serial numbers.
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The false statement is intended to compare the FIFO method and weighted average for inventory valuation, not FFO and weighted average. FIFO often inflates inventory value by leaving older, cheaper products in inventory while the weighted average method reflects an average cost.
Explanation:The statement 'FFO reports a more accurate value of ending inventory than the weighted average, as it is based on the most recent purchases.' is false as there is no such inventory valuation method as FFO mentioned in the statements. The comparison may be intended between FIFO (First-In-First-Out) method and the weighted average method. FIFO is often valued higher, not because it is more accurate, but because it uses the cost of the most recent inventory as the cost of the goods sold. This leaves the older, often cheaper products in the inventory, thus inflating its value. On the other hand, the weighted average method gives a value that is intermediate between FIFO and LIFO (Last-In-First-Out) methods by considering the average cost of all goods available for sale during the period.
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The following costs relate to Tower Company: Variable manufacturing cost, $33; variable selling and administrative cost, $11; applied fixed manufacturing overhead, $18; and allocated fixed selling and administrative cost, $7. If Tower uses total-cost pricing formulas, the company's markup percentage would be computed on the basis of:
Multiple Choice
$33.
$44.
$51.
$69.
None of the answers is correct.
The formarkup percentage Tower Company would be computed on the basis of the total cost of $69.
To compute the markup percentage for Tower Company based on total-cost pricing formulas, we need to consider both variable and fixed costs. The markup percentage is typically calculated based on the total cost, which includes both variable and fixed costs.
The variable costs in this case are the variable manufacturing cost ($33) and the variable selling and administrative cost ($11). The fixed costs are the applied fixed manufacturing overhead ($18) and the allocated fixed selling and administrative cost ($7).
To determine the total , we add the variable costs and the fixed costs:
Total cost = Variable manufacturing cost + Variable selling and administrative cost + Applied fixed manufacturing overhead + Allocated fixed selling and administrative cost
Total cost = $33 + $11 + $18 + $7
Total cost = $69
Therefore, based on the given costs, the markup percentage for Tower Company would be computed on the basis of the total cost of $69.
the desired profit margin is different, the markup percentage will change accordingly.
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Four Key Markets and the Circular Flow of Income: Source--MindTap Textbook Chapter 9-2, Exhibit 1 (200 word minimum) Explain Chapter 9 Exhibit 1. Thoroughly discuss each of the Four Key Markets, and how they interact. Your objectivewis to convince me that you understand Exhibit 1. Use of graphical analysis in your response is optional but encouraged.
The Four Key Markets of the circular flow of income—product market, resource market, financial market, and government sector
The circular flow of income is a fundamental concept in economics that illustrates the flow of goods, services, and money between different sectors of the economy. Exhibit 1 in Chapter 9 likely presents a graphical representation of the circular flow of income, highlighting the Four Key Markets: the product market, the resource market, the financial market, and the government sector.
Product Market: The product market represents the exchange of final goods and services between firms and households. In this market, firms supply goods and services, and households, as consumers, demand and purchase these products. The revenue generated from these transactions flows back to the firms.
Resource Market: The resource market is where the factors of production (such as labor, land, and capital) are bought and sold. Firms demand these resources to produce goods and services, while households supply their labor and other resources in exchange for income (wages, rent, interest, and profit).
Financial Market: The financial market facilitates the borrowing and lending of funds. It includes banks, financial institutions, and stock markets. Firms can borrow money to invest in capital or other projects, while households can save their income and earn interest on their savings. The financial market connects savers and borrowers and allows the flow of funds between them.
Government Sector: The government sector includes government entities at various levels (local, state, and federal). Governments collect taxes from households and firms, which provide the government with revenue. In turn, the government provides public goods and services, redistributes income, and implements economic policies.
The interaction between these four markets creates a circular flow of income. Firms produce goods and services, which are sold in the product market to households. Households, in turn, provide resources in the resource market, earning income. They use part of this income for consumption in the product market and save or invest the rest. The savings flow into the financial market, where firms can borrow and invest. Additionally, the government collects taxes from households and firms, providing public goods and services and redistributing income.
In summary, represent the interconnectedness of economic transactions and the flow of goods, services, and money within an economy.
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Hulme Company operates a small manufacturing facility as a supplement to its regular service activities.
At the beginning of 2020, an asset account for the company showed the following balances:
Manufacturing equipment $120,000
Accumulated depreciation through 2019 57,600
During 2020, the following expenditures were incurred for the equipment:
Major overhaul of the equipment on $13,000
January 2, 2020 that improved efficiency Routine maintenance and repairs on the 1,000 equipment The equipment is being depreciated on a straight-line basis over an estimated life of 15 years with a $12,000 estimated residual value. The annual accounting period ends on December 31.
Required:
1. Give the adjusting entry that was made at the end of 2019 for depreciation on the manufacturing equipment.
2. Starting at the beginning of 2020, what is the remaining estimated life?
3. Give the journal entries to record the two expenditures during 2020.
1. The adjusting entry that was made at the end of 2019 for depreciation on the manufacturing equipment is: Depreciation Expense ($120,000 - $12,000) / 15 = $7,200Accumulated Depreciation $7,2002.
2. Starting at the beginning of 2020, the remaining estimated life is: 14 years (since the estimated life of the equipment is 15 years and one year has already passed at the beginning of 2020)
3. The journal entries to record the two expenditures during 2020 are:January 2, 2020:Manufacturing Equipment $13,000Cash $13,000 Routine maintenance and repairs on the equipment:Repairs and Maintenance Expense $1,000Cash $1,000 The logic behind these journal entries are:
When a company acquires property, plant and equipment, it should initially be recorded at cost, including all costs necessary to get the asset ready for its intended use. After initial recognition, the company must recognise depreciation expenses in order to allocate the asset's cost to expense over its estimated useful life. The company can also spend money on repairs and maintenance in order to keep the asset in good working order. If the company makes an expenditure to improve an asset, such as a major overhaul, the expenditure should be capitalised and the asset's book value should be adjusted accordingly.
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At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
The company issued a two-year, 12%, $620,000 note in exchange for a tract of land. The current market rate of interest is 12%.
Lambert acquired some office equipment with a fair value of $104,107 by issuing a one-year, $110,000 note. The stated interest on the note is 6%. The current market rate of interest is 12%.
The company purchased a building by issuing a three-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 12%.
1. For the two-year, 12% $620,000 note issued in exchange for the tract of land, since the current market rate of interest is also 12%, the note is issued at its face value and there would be no premium or discount. The interest expense for each year would be calculated using the PV of $1 table. The interest expense for the first year would be $620,000 * 12% = $74,400.
2. For the one-year, $110,000 note issued to acquire office equipment, with a fair value of $104,107, and a stated interest rate of 6%, while the current market rate of interest is 12%, it is considered a below-market interest rate. The fair value of the note is determined by discounting the future cash flows at the market rate of interest. The discount would be $110,000 - $104,107 = $5,893. The interest expense for the year would be $104,107 * 12% = $12,493.
3. For the three-year installment note used to purchase the building, with equal annual payments of $1 million, and a current market rate of interest of 12%, the note is issued at face value with no premium or discount. The interest expense for each year would be calculated using the PV of $1 table. The interest expense for the first year would be $1 million * 12% = $120,000.
In summary, for the three notes issued by Lambert Motors, the interest expenses are as follows: $74,400 for the land note, $12,493 for the office equipment note, and $120,000 for the building note. These expenses represent the interest cost incurred by the company for each respective note during the year.
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Which type of service shows the largest degree of inequity favouring the rich in most European countries? Select one: a. GP visits. b. Hospitalisations, c. Emergency visits. d. Specialist visits.
The type of service that shows the largest degree of inequity favouring the rich in most European countries is the option D. "Specialist Visits."
It has been noted that the wealthy populations are better positioned to access specialist health care. This is because specialists are likely to be found in wealthier areas, and people from lower-income groups are less likely to access them. As a result, patients from lower-income groups are often left with no choice but to seek health care from general practitioners (GPs), who are not as specialized. While specialist care is expensive, it is accessible to the wealthy, and so they tend to have more access to specialized care compared to the lower-income groups. This creates a disparity between the two groups and the provision of health care services.
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Cathy Company's accountant is not an ethical person. She manipulates net income to make it appear higher or lower depending on the circumstances. She can likely make it appear lower by classifying: assembly-line workers' wages incurred in the factory as salespersons' wages incurred in the sales offices. assembly-line workers' wages incurred in the factory as direct materials used in the factory. salespersons' wages incurred in the sales offices as assembly-line workers' wages incurred in the factory. salespersons' wages incurred in the sales offices as insurance cost incurred on the sales offices.
Cathy Company's unethical accountant can manipulate net income to make it appear lower by classifying salespersons' wages incurred in the sales offices as assembly-line workers' wages incurred in the factory.
The accountant's objective is to make the net income appear lower, which can be achieved by misclassifying expenses. By classifying salespersons' wages incurred in the sales offices as assembly-line workers' wages incurred in the factory, the accountant can shift the wages from a selling and administrative expense category to a manufacturing or direct labor cost category.
As a result, the expenses associated with salespersons' wages will be offset against the revenue, reducing the net income.
This unethical practice distorts the true financial picture of the company by misrepresenting the nature of the expenses and their relation to the company's operations. It can mislead stakeholders, including investors, creditors, and management, who rely on accurate financial information to make informed decisions.
It is important for Cathy Company to have proper internal controls and ethical guidelines in place to prevent such manipulations and ensure the integrity and transparency of its financial reporting.
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Supply and Demand - End of Chapter Problem b. On the Supply curve, i. Show an increase in supply, and label it \( S_{1} \). ii. Show a decrease in supply, and label it \( S_{2} \). iii. Show an increa
On the supply curve, we can depict changes in supply by shifting the curve either to the right or to the left. Here is a detailed explanation of the requested changes:
i. Increase in Supply (\(S_1\)):
To show an increase in supply, we shift the supply curve to the right, denoted as \(S_1\).
An increase in supply means that producers are willing and able to supply a larger quantity of a good or service at each price level. This could be due to factors such as technological advancements, lower production costs, or an increase in the number of producers. By shifting the supply curve to the right, we indicate that at any given price, a greater quantity will be supplied.
An increase in supply leads to a new equilibrium with a higher quantity supplied and potentially a lower price.
ii. Decrease in Supply (\(S_2\)):
To show a decrease in supply, we shift the supply curve to the left, denoted as \(S_2\).
A decrease in supply means that producers are willing and able to supply a smaller quantity of a good or service at each price level. This could be due to factors such as increased production costs, scarcity of resources, or a decrease in the number of producers. By shifting the supply curve to the left, we indicate that at any given price, a lower quantity will be supplied.
A decrease in supply leads to a new equilibrium with a lower quantity supplied and potentially a higher price.
Please note that the numerical values or specific changes in equilibrium price and quantity resulting from these shifts are not provided, as they would depend on the specific circumstances and the interplay between supply and demand in the market.
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Assume that Sheridan uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet. (Round answers to 0 decimal places, e.g. 2,125.)
Sheridan Company
Partial Balance Sheet
choose the accounting period For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020
enter a balance sheet item
$enter a dollar amount
select between addition and deduction AddLess: enter a balance sheet item
enter a dollar amount
$enter a subtotal of the two previous amounts
To determine how the truck would be reported on December 31, 2020, balance sheet using the straight-line depreciation method, we need to consider the following:
Balance Sheet:
Date: December 31, 2020Assets:Truck (Less: Accumulated Depreciation) $xxxAccumulated Depreciation (xxx)Total Assets $xxx
Liabilities:None reportedEquity:
None reportedThe truck will be reported as an asset on the balance sheet at its original cost.The accumulated depreciation for the truck will be reported as a deduction from its cost to show the portion of its value that has been depreciated over time.The net value of the truck (cost - accumulated depreciation) will be shown as the total asset value.Please note that specific dollar amounts should be provided to complete the balance sheet accurately.
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We can say that suppliers have strong bargaining power when: A Substitute products are readily available. (B) Suppliers are able to raise their prices even though buyers object and costs haven't risen. (C) Suppliers are able to eliminate all switching costs. D All of the above E None of the above.
Suppliers have strong bargaining power when they are able to raise their prices even though buyers object and costs haven't risen. This indicates a situation where suppliers have a significant advantage in negotiations and can dictate terms to buyers.
Supplier bargaining power refers to the ability of suppliers to exert influence and control over the terms and conditions of a business relationship with buyers. It can be influenced by various factors. Among the given options, option B states that suppliers have strong bargaining power when they are able to raise their prices even though buyers object and costs haven't risen. This indicates that suppliers have the upper hand in negotiations and can impose their desired pricing terms despite buyer resistance.
Options A and C are not indicative of strong supplier bargaining power. Substitute products being readily available (option A) gives buyers more options and reduces the supplier's power. Similarly, the elimination of switching costs (option C) makes it easier for buyers to switch between suppliers, reducing the supplier's bargaining power.
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subject: economics (time value of money)
please show me the solution in manual solving thanks!
End of Year 1 2 3 4 5 Find the value at the end of year 2 at 9% interest Cashflow 40,000 80,000 50,000 40,000 30,000
The value at the end of year 2, considering a 9% interest rate, is approximately $67,359.
to manually calculate the value at the end of year 2 at a 9% interest rate, we need to consider the time value of money and discount the cash flows.
year | cash flow | discount factor (9%) | discounted cash flow-----|-----------|-
to find the value at the end of year 2, we need to calculate the discounted cash flow for the cash flow in year 2.
discounted cash flow (year 2) = 80,000 / (1+0.09)²
calculating it, we have:
discounted cash flow (year 2) = 80,000 / (1.09)²
= 80,000 / 1.1881 ≈ 67,359.61 61.
the time value of money concept recognizes that money has a higher value in the present compared to the future due to its earning potential. by discounting the future cash flows using an appropriate interest rate, we can determine their present value. in this case, to find the value at the end of year 2, we apply the discount factor (1/(1+0.09)²) to the cash flow in year 2 (80,000). this gives us the present value of the cash flow at the end of year 2, which is approximately $67,359.61.
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The diagram below illustrates the case of a good that is partly home [1] produced and partly imported. The world price is Pw. After a tariff is imposed by the govemment the price is Pw+t. The area that represents dead weight loss when the tariff is applied is: A 2 and 4 B 1 and 5 C 5 only D 2,3 and 4
The diagram illustrates a situation where a tariff is imposed on a good that is partly produced domestically and partly imported. The world price of the good is denoted as Pw, and after the tariff is imposed, the price increases to Pw+t. Option D, which includes points 2, 3, and 4, correctly identifies the area representing deadweight loss.
To determine the area representing deadweight loss, we need to analyze the effects of the tariff on consumer surplus and producer surplus. The deadweight loss occurs due to the reduction in total surplus resulting from the tariff. In this case, the deadweight loss area can be identified as the triangular region that lies between points 2, 3, and 4 on the diagram. This area represents the loss of welfare to both consumers and producers that arises from the tariff.
Option D, which includes points 2, 3, and 4, correctly identifies the area representing deadweight loss. Options A, B, and C do not fully capture the entire deadweight loss area. The deadweight loss arises due to the inefficiency introduced by the tariff, reducing the gains from trade and distorting the allocation of resources.
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Identify then explain the four types of installation.
Identify then explain the deliverables from logic modeling.
Discuss modeling logic with decision tables.
Discuss how DFDs can be used as analysis tools.
Identify then explain and discuss four types of documents that would be helpful in determining future system requirements.
Four types of installation: New Installation, Replacement Installation, Parallel Installation.
a. New Installation: In this type of installation, a new system is implemented in an organization where no previous system existed. It involves installing both the hardware and software components required for the new system.
b. Replacement Installation: Replacement installation occurs when an existing system is replaced with a new one. This may be necessary due to outdated technology, system inefficiencies, or the need for enhanced functionality. The new system is installed and replaces the old one, often requiring data migration and training for the users.
c. Parallel Installation: Parallel installation involves running both the old and new systems simultaneously for a period of time. This allows for a gradual transition to the new system, as users become familiar with the new system and any issues can be identified and resolved. Once the new system is deemed reliable and effective, the old system is discontinued.
d. Phased Installation: Phased installation is a gradual implementation of the new system in different phases or modules. Each phase is implemented and tested independently before moving on to the next phase. This approach allows for better control and reduces the risks associated with a full system rollout.
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in acquisitions for commercial items, the terms of an express warranty should be
In acquisitions for commercial items, the terms of an express warranty should be clearly stated.
The terms of an express warranty in commercial items acquisitions should be clearly stated to help the buyer make an informed decision before making a purchase. An express warranty is a written or spoken guarantee made by a seller of a product that assures the buyer that the product will meet specific expectations. The terms should be clearly written, concise, and easily understood by the buyer to avoid any confusion or misunderstandings. This helps to protect both the buyer and the seller in case of any disputes that may arise in the future. By stating the terms of the express warranty clearly, it allows the buyer to know what to expect and what to do if they need to claim the warranty. It also helps the seller to have clear guidelines on what is covered under the warranty and how it can be claimed.
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Sweeney Molort is a chain of car dealerships. Sales in the fourth quarter of last year were $4,200,000. Suppose management peojects that its current years quartany sales will incresse by 4$ in quarler 1 , by another 6% in quarter 2 , by another 7% in quanter 3 , and by another 2% in quarter 4 . Management expects cost of goods sold to be 55% of rovenues every quarter, while operating expenses should be 30% of revenwes during each of the first two quaters, 25% of revenues during the third quarter, and 35% during the fourth quartee. Requirement: Prepare a budgoted income statement for each of the four quarters and for the nintire year.
Answer: The budgeted revenues from sales are Q1: $ 4368000 Q2: $ 4630080 Q3: $ 4954185.60 and Q4: 5053269.31
Explanation: Please refer to the attached file for the detailed Income Statement to learn about the projected or budgeted Revenue, Cost of Goods Sold and Operating Expenses.
Why do many economists think the oligopolist's demand curve
might have a kink in it?
1.Competition leads to kinky behavior by the firms.
2.Competing firms match price cuts, but ignore price
increases.
Many economists believe that the demand curve of an oligopolist might have a kink due to competing firms' behavior, where they match price cuts but ignore price increases.
The kink in the demand curve of an oligopolist arises from the strategic behavior of firms in an oligopolistic market structure. In an oligopoly, there are a few dominant firms that have significant market power and influence over prices. The behavior of these firms is interdependent, meaning they take into account the actions of their competitors when making pricing decisions.
When one firm in an oligopoly decides to cut its prices, other firms often follow suit and match the price reduction to prevent losing market share. This leads to a situation where price cuts are quickly matched by competitors, resulting in a relatively elastic demand curve segment. However, when a firm attempts to increase its prices, other firms are less likely to follow and instead maintain their current prices to attract customers. As a result, price increases are not matched by competitors, leading to a relatively inelastic demand curve segment.
The kink in the demand curve represents the point where the elasticity of demand changes abruptly due to the different responses of competing firms to price cuts versus price increases. This kink indicates a non-linear relationship between price and quantity demanded, making the demand curve slope different above and below the kink point. The existence of this kink suggests that firms in an oligopoly engage in strategic pricing behavior, carefully considering the reactions of their competitors, which can result in a unique demand curve shape.
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The money supply (M2) includes M1 plus balances in Multiple Choice Saving accounts and money market mutual funds. Saving accounts, money market mutual funds, and certificates of deposit over $100,000. Money market mutual funds only. Saving accounts only.
The money supply (M2) includes balances in saving accounts and money market mutual funds, as well as certificates of deposit over $100,000.
M2 is a broader measure of the money supply that encompasses M1 (which includes currency in circulation, demand deposits, and traveler's checks) and adds additional components. These additional components include balances held in saving accounts and money market mutual funds, as well as certificates of deposit (CDs) with a value exceeding $100,000. By including saving accounts and money market mutual funds, M2 captures funds that individuals and households have set aside for saving or investment purposes.
Additionally, the inclusion of certificates of deposit over $100,000 reflects larger, less-liquid deposits that can still be considered part of the broader money supply. The purpose of including these components in M2 is to provide a more comprehensive measure of the available money in the economy, accounting for different types of savings and investment instruments that have varying degrees of liquidity.
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Which is an explanation of an "inverted yield curve"? a) Short term rates exceeds long term rates b) Long term rates exceed short term rates c) Inflation d) Normal yield curve e) Real rate of interest
An inverted yield curve refers to the situation where long-term interest rates (such as bond yields) are lower than short-term interest rates.
Option (b) is the correct explanation of an inverted yield curve. In a normal yield curve, short-term interest rates are typically lower than long-term interest rates, reflecting the expectation of higher returns for longer-term investments. However, in an inverted yield curve, the relationship is reversed, and long-term interest rates exceed short-term interest rates.
An inverted yield curve is considered a significant economic indicator as it often precedes an economic downturn or recession. It suggests that investors have a pessimistic outlook on the future economy, leading them to demand higher yields for shorter-term investments. This inversion can occur due to various factors, including expectations of future interest rate cuts, a decrease in investor confidence, or concerns about economic growth and inflation.
Financial analysts and policymakers closely monitor the yield curve as it provides insights into market expectations and can influence borrowing costs, investment decisions, and economic policies.
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Torres Company budgets merchandise purchases of $16,800 in January, $19,600 in February, and $21,200 in March. For those purchases, 40% of purchases are paid in the month of purchase and 60% are paid in the month after the purchase. The company purchased $25,000 of merchandise in December. Prepare a schedule of cash payments for merchandise for the months of January, February, and March
Cash payments refer to the actual outflow of cash from a company to settle its obligations or pay for goods and services. It represents the physical transfer of money from the company's bank account or cash on hand to another party.
To prepare a schedule of cash payments for merchandise purchases for the months of January, February, and March, we need to consider the payment terms specified for each month's purchases.
Here's the schedule:
December: $25,000 (purchased in December, paid in the same month)
January: 40% of $16,800 (purchased in January, paid in the same month)
February: 60% of $16,800 (purchased in January, paid in February)
February: 40% of $19,600 (purchased in February, paid in the same month)
March: 60% of $19,600 (purchased in February, paid in March)
March: 40% of $21,200 (purchased in March, paid in the same month)
Calculating the values:
December: $25,000
January: $16,800 * 0.4 = $6,720
February: $16,800 * 0.6 + $19,600 * 0.4 = $11,760 + $7,840 = $19,600
March: $19,600 * 0.6 + $21,200 * 0.4 = $11,760 + $8,480 = $20,240
Therefore, the schedule of cash payments for merchandise purchases is as follows:
January: $6,720
February: $19,600
March: $20,240
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The Sarbanes-Oxley Act, or SOX, Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b C 43 d holds corporate advisors strictly accountable in a legal sense for any instances of misconduct pretexts the interests of shareholders by providing greater protection against accounting fraud and financial misconduct reduces the cost of financial reporting by standardizing reporting requirements accomplishes both A and B Unanswered
The Sarbanes-Oxley Act is a comprehensive legislation that aims to improve corporate governance, enhance transparency, and protect shareholders' interests by addressing accounting fraud and financial misconduct while also providing standardized reporting requirements.
The Sarbanes-Oxley Act, or SOX, accomplishes both A and B. The act was enacted in 2002 in response to major corporate scandals such as Enron and WorldCom, which highlighted the need for greater accountability and transparency in financial reporting. SOX holds corporate advisors strictly accountable in a legal sense for any instances of misconduct, ensuring that they face consequences for their actions.
In terms of protecting the interests of shareholders, SOX provides greater safeguards against accounting fraud and financial misconduct. It establishes stricter requirements for financial disclosures and internal controls, making it more difficult for companies to manipulate financial statements or engage in deceptive practices. By doing so, it aims to restore investor confidence and promote the integrity of financial markets.
Furthermore, SOX standardizes reporting requirements, reducing the cost of financial reporting for companies. It sets guidelines for corporate governance, internal auditing, and independent audit committees, streamlining processes and increasing efficiency.
Overall, the Sarbanes-Oxley Act is a comprehensive legislation that aims to improve corporate governance, enhance transparency, and protect shareholders' interests by addressing accounting fraud and financial misconduct while also providing standardized reporting requirements.
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Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 12 years remaining to maturity, and have a required rate of return of 11.5 percent. a. The bond has a 7.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) b. The bond has a 9.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) c. The bond has a 11.5 percent coupon rate. (Do not round intermediate calculations.)
To calculate the fair present values of the bonds, we need to find the present value of the bond's future cash flows, which consist of periodic coupon payments and the face value payment at maturity.
The formula to calculate the present value of a bond's cash flows is as follows:
PV = C * [1 - (1 + r)^(-n)] / r + F / (1 + r)^n
Where:
PV = Present value of the bond
C = Coupon payment
r = Required rate of return (yield to maturity)
n = Number of periods
Let's calculate the fair present values for each bond:
a. Bond with a 7.8 percent coupon rate:
C = 0.078 * $1,000 / 2 = $39
r = 11.5% / 2 = 0.115 / 2 = 0.0575
n = 12 * 2 = 24 (since payments are semiannual)
PV(a) = $39 * [1 - (1 + 0.0575)^(-24)] / 0.0575 + $1,000 / (1 + 0.0575)^24
b. Bond with a 9.8 percent coupon rate:
C = 0.098 * $1,000 / 2 = $49
r = 0.0575 (same as before)
n = 24 (same as before)
PV(b) = $49 * [1 - (1 + 0.0575)^(-24)] / 0.0575 + $1,000 / (1 + 0.0575)^24
c. Bond with an 11.5 percent coupon rate:
C = 0.115 * $1,000 / 2 = $57.50
r = 0.0575 (same as before)
n = 24 (same as before)
PV(c) = $57.50 * [1 - (1 + 0.0575)^(-24)] / 0.0575 + $1,000 / (1 + 0.0575)^24
By plugging in the values and evaluating the expressions, you can calculate the fair present values for each bond.
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A team consisting of Puritan firm's consultants just completed the coding for the first of ten sections for Cyber Hospital ward project. In total, the team took 17 hours to complete one section of the ward. The team was billed at $ 45/hour plus 15 percent to cover overhead. Previous experience indicates that the project of this type follow a 75 percent learning curve. Determine the following: i) ii) the total cost for the first button. the time required to complete the seventh button.
The time required to complete the seventh section of the Cyber Hospital ward project is approximately 33.034 hours.
To determine the total cost for the first section of the Cyber Hospital ward project, we need to calculate the cost per hour and then multiply it by the total hours taken to complete the section.
Given:
Time taken for the first section = 17 hours
Consultants billed at $45/hour plus 15% for overhead
Learning curve: 75%
Step 1: Calculate the cost per hour, including overhead:
Hourly rate = $45/hour
Overhead rate = 15% of the hourly rate = 0.15 * $45 = $6.75
Cost per hour including overhead = $45 + $6.75 = $51.75
Step 2: Calculate the total cost for the first section:
Total cost = Cost per hour including overhead * Time taken for the first section
Total cost = $51.75 * 17 hours
Total cost = $879.75
Therefore, the total cost for the first section of the Cyber Hospital ward project is $879.75.
To determine the time required to complete the seventh section, we can use the concept of the learning curve. The learning curve indicates that as more units are produced or tasks are completed, the time required to complete each subsequent unit or task decreases at a certain rate.
Given that the learning curve for this project is 75%, we can use the following formula:
Time required for the nth unit = Time required for the first unit * (n^log0.75)
Here, n represents the unit number. In this case, we want to find the time required for the seventh section.
Step 1: Calculate the time required for the first section:
Time required for the first section = 17 hours
Step 2: Calculate the time required for the seventh section:
Time required for the seventh section = Time required for the first section * (7^log0.75)
Using the formula, we can calculate the time required for the seventh section:
Time required for the seventh section = 17 hours * (7^log0.75)
Time required for the seventh section ≈ 17 hours * (7^0.415)
Time required for the seventh section ≈ 17 hours * 1.942
Time required for the seventh section ≈ 33.034 hours
Therefore, the time required to complete the seventh section of the Cyber Hospital ward project is approximately 33.034 hours.
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The time required to complete the seventh section of the Cyber Hospital ward project is approximately 33.034 hours.
To determine the total cost for the first section of the Cyber Hospital ward project, we need to calculate the cost per hour and then multiply it by the total hours taken to complete the section.
Given:
Time taken for the first section = 17 hours
Consultants billed at $45/hour plus 15% for overhead
Learning curve: 75%
Step 1: Calculate the cost per hour, including overhead:
Hourly rate = $45/hour
Overhead rate = 15% of the hourly rate = 0.15 * $45 = $6.75
Cost per hour including overhead = $45 + $6.75 = $51.75
Step 2: Calculate the total cost for the first section:
Total cost = Cost per hour including overhead * Time taken for the first section
Total cost = $51.75 * 17 hours
Total cost = $879.75
Therefore, the total cost for the first section of the Cyber Hospital ward project is $879.75.
To determine the time required to complete the seventh section, we can use the concept of the learning curve. The learning curve indicates that as more units are produced or tasks are completed, the time required to complete each subsequent unit or task decreases at a certain rate.
Given that the learning curve for this project is 75%, we can use the following formula:
Time required for the nth unit = Time required for the first unit * (n^log0.75)
Here, n represents the unit number. In this case, we want to find the time required for the seventh section.
Step 1: Calculate the time required for the first section:
Time required for the first section = 17 hours
Step 2: Calculate the time required for the seventh section:
Time required for the seventh section = Time required for the first section * (7^log0.75)
Using the formula, we can calculate the time required for the seventh section:
Time required for the seventh section = 17 hours * (7^log0.75)
Time required for the seventh section ≈ 17 hours * (7^0.415)
Time required for the seventh section ≈ 17 hours * 1.942
Time required for the seventh section ≈ 33.034 hours
Therefore, the time required to complete the seventh section of the Cyber Hospital ward project is approximately 33.034 hours.
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Which of the following would be considered an external risk to the supply chain?
A. Poor quality
B. Equipment breakdowns
C. Labor shortages
D. Poor forecasting
a. What impact do you think recyclable materials will have on the sustainability goals of Starbucks?
b. Is Starbucks unique in being able to provide a high level of benefits and college tuition reimbursement to its employees?
c. Do you think Starbucks has grown because of its mission to put people ahead of profits or because of innovative ideas like online ordering and global roasteries?
Recyclable materials can contribute to Starbucks' sustainability goals. Starbucks provides a high level of benefits and college tuition reimbursement though it's not entirely unique.
a. Recyclable materials can have a significant impact on the sustainability goals of Starbucks. By using recyclable materials for their products, Starbucks can reduce waste and promote a circular economy. It helps minimize the environmental footprint by reducing the use of single-use plastics and encouraging recycling. This aligns with Starbucks' commitment to sustainability and supports their goal of minimizing their environmental impact.
b. While Starbucks is known for providing a high level of benefits and college tuition reimbursement to its employees, it is not necessarily unique in doing so. Many companies across various industries offer competitive employee benefits and education assistance programs. However, Starbucks has gained recognition for its comprehensive benefits package, which includes healthcare coverage, stock options, and tuition reimbursement through the Starbucks College Achievement Plan. This program provides eligible employees the opportunity to earn a bachelor's degree with full tuition coverage, which sets Starbucks apart from some other companies.
c. Starbucks' growth can be attributed to a combination of factors. While its mission to put people ahead of profits has certainly played a role in shaping its corporate culture and customer loyalty, innovative ideas like online ordering and global roasteries have also contributed to its success. Starbucks recognized the evolving consumer preferences and leveraged technology to offer convenient ways for customers to order and enjoy their products. Online ordering, mobile apps, and digital payment options have enhanced customer convenience and accessibility. Additionally, Starbucks' global roasteries have become destinations for coffee enthusiasts, offering immersive coffee experiences and showcasing the art and craftsmanship of coffee making. The combination of a customer-centric mission and innovative ideas has helped Starbucks expand its customer base and drive growth in the competitive coffee industry.
In conclusion, recyclable materials can contribute to Starbucks' sustainability goals. Starbucks provides a high level of benefits and college tuition reimbursement though it's not entirely unique, and Starbucks' growth can be attributed to both its mission to put people first and its innovative ideas like online ordering and global roasteries.
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The Foundation For Critical Thinking States That All Subjects Have A Fundamental Thought Process. To Understand The Thought Process, They Recommend Raising Some Questions. Please Respond In Your Own Words To The Four Questions Below Using What You Have Learned In This Course. A) What Viewpoint Is Fostered In This Field (I.E., How Do Internal
The Foundation for Critical Thinking states that all subjects have a fundamental thought process. To understand the thought process, they recommend raising some questions. Please respond in your own words to the four questions below using what you have learned in this course.
a) What viewpoint is fostered in this field (i.e., how do internal auditors tend to view the world)?
b) What kinds of problems do they try to solve?
c) How do they go about gathering information?
d) What types of judgments and assumptions do internal auditors make?
Internal auditors foster a viewpoint that emphasizes objectivity, independence, and a systematic approach to assessing and improving organizational processes.
The aim is to solve problems related to risk management, control effectiveness, compliance with regulations, and operational efficiency. To gather information, internal auditors employ various techniques such as interviews, document reviews, data analysis, and observation. They make judgments based on evidence and professional standards, and their assumptions are rooted in an understanding of the organization's objectives, risks, and internal controls.
a) Internal auditors tend to view the world from an objective and independent standpoint. They prioritize the need for unbiased assessments and evaluations of an organization's processes, controls, and risks. Their viewpoint is grounded in the belief that a systematic and disciplined approach is crucial for effective internal auditing.
b) Internal auditors aim to solve problems related to risk management, control effectiveness, compliance with regulations, and operational efficiency. They identify areas where risks and inefficiencies exist, and their focus is on providing recommendations and solutions to mitigate these issues.
c) Internal auditors gather information through various means. They conduct interviews with relevant personnel, review documents such as policies, procedures, and financial records, perform data analysis to identify trends and anomalies, and observe operations firsthand. They combine these sources of information to gain a comprehensive understanding of the organization's processes and controls.
d) Internal auditors make judgments based on the evidence they gather during their assessments. Their judgments are guided by professional standards, industry best practices, and organizational policies. They strive to provide reliable and objective conclusions and recommendations. Internal auditors also make assumptions based on their understanding of the organization's objectives, risks, and internal controls, which helps them assess the adequacy and effectiveness of existing processes.
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SOLVE 1. From the following information calculate expected return from XYZLtd.− Risk free rate is 5%, Market return is 10% and Beta value is 0.5 of XYZ Ltd. 2. From the following information you have to calculate Risk Premium. Risk free rate is 10%, market return is 15% and beta is 1.5. 3. From the following information find out that stock is over performer or under performer. Rf is 5%, market Return is 10%, beta is 0.5 and actual return is 10%.
1. To calculate the expected return from XYZ Ltd., we can use the Capital Asset Pricing Model (CAPM) formula:
Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)
Given:
Risk-Free Rate = 5%
Market Return = 10%
Beta = 0.5
Expected Return = 0.05 + 0.5 * (0.10 - 0.05) = 0.05 + 0.5 * 0.05 = 0.05 + 0.025 = 0.075 or 7.5%
Therefore, the expected return from XYZ Ltd. is 7.5%.
2. To calculate the Risk Premium, we subtract the Risk-Free Rate from the Market Return:
Risk Premium = Market Return - Risk-Free Rate
Given:
Risk-Free Rate = 10%
Market Return = 15%
Risk Premium = 0.15 - 0.10 = 0.05 or 5%
Therefore, the Risk Premium is 5%.
3. To determine whether the stock is an overperformer or underperformer, we compare the actual return with the expected return. If the actual return is higher than the expected return, the stock is an overperformer. If the actual return is lower than the expected return, the stock is an underperformer.
Given:
Risk-Free Rate (Rf) = 5%
Market Return = 10%
Beta = 0.5
Actual Return = 10%
The expected return can be calculated using the CAPM formula as mentioned in question 1:
Expected Return = 0.05 + 0.5 * (0.10 - 0.05) = 0.075 or 7.5%
Since the actual return (10%) is equal to the expected return (7.5%), the stock is neither an overperformer nor an underperformer. It is performing in line with expectations.
Note: It's important to consider that these calculations are based on simplified models and assumptions. Actual stock performance can be influenced by various factors and may deviate from expected returns.
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a) The project on day 1 Max 750 words 20 marks So, some great news arrived today with the award to your head contracting (building) company for an 18-month refurbishment building project. The building is an old building being refurbished into apartments. The façade and front half of the building will remain, but the back section will be rebuilt and extended. Your construction director is greatly relieved as the company has had no substantial projects for some time and was looking at having to lay off staff. As a junior site engineer, you were worried you would lose your first job in the industry. The contract was awarded after competitive tendering, which used the traditional procurement method. Both drawings and specifications were produced by reputable architecture and engineering consultancies. The client has made it very clear to the consulting team that they want the project completed on schedule and within the stated budget.
Your company's construction price was $23.7 million - which was about $1.8 million below that of the next lowest bidder. However, going through the tender again, the construction director found some errors, which, when costed out, demonstrates that there may be no profit from the project and a potential loss of nearly $500,000. All those involved in the tender process had been reprimanded. They don't seem to think it was an issue, with some saying, "well what did they expect when we delayed the decision to start work on the tender. At least it is better than being told off for coming second again"! But this is not the only problem. Your company has not tackled a project like this before. You usually only do new builds (so whole new buildings from the foundations up!) and not refurbishments of old buildings. This building has some heritage stonework needing replacement and some demolition work within the building. You need to fit-out new kitchens and bathrooms within a brick and stone building, but your company is more familiar with modern brick veneer external walls and timber-framed internal walls with plasterboard. You have never before been involved in a project which needed an existing façade to be braced and underpinned.
Still hopefully, the company will be able to get some lower prices from other subcontractors. Unfortunately, the company estimator also allowed very little in the bid for the on-site supervision of work. Still, hopefully, the company will be able to manage with the staff they have allocated. You have been assigned to the project. The architect and engineers have told you that the client has been difficult during the pre-tender stage and often refused to co-operate and paid them to "do the work that is needed to get this approved through council". They have not fully documented the project. The architect suggested several builders who had worked on these refurbishment type projects before. Your company was not on this list. The architect is worried your company has been selected. They are not sure why your company was even asked to bid! The architect is convinced that the builder (your company) does not understand the technicalities of the project and that this was the reason for their low price. The client told the architect that the builder could "sort out any problems on-site".
i. What are the main issues facing your company on this project? For each issue, discuss what your company should have done, or could do, to reduce their exposure to the risks they now face? ii. What are the main issues facing the client on this project? For each issue, discuss what the client should have done to reduce their exposure to the risk they now face? What are these risks in terms of cost, time and quality?
Company: Tender process errors, lack of experience, inadequate supervision. Client: Collaboration issues, incomplete documentation, reliance on on-site problem-solving.
The company's main issues stem from errors in the tender process, lack of experience in refurbishment projects, and inadequate budget allocation for supervision. To mitigate these risks, the company should have conducted a comprehensive cost analysis to identify potential errors, sought expert advice or partnered with experienced subcontractors to bridge the knowledge gap, and allocated sufficient resources for on-site supervision to ensure project success.
On the client's side, issues arise from difficulties during the pre-tender stage, incomplete project documentation, concerns about the builder's technical understanding, and reliance on on-site problem-solving. To reduce their exposure to risks related to cost, time, and quality, the client should have fostered better collaboration and cooperation during the pre-tender stage, demanded comprehensive project documentation to ensure clarity and alignment, and selected a builder with relevant expertise and a proven track record to guarantee a successful outcome.
By addressing these issues proactively, both the company and the client can minimize the risks they currently face and enhance the chances of completing the project on schedule, within budget, and to the desired quality standards.
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Is forestry an important part of the economy of the Inland South? a. No, the many pests prevalent in the south have prevented many trees from prospering. b. Yes, the warm, moist climate allows trees to grow quickly. c. No, the thin, nutrient poor soils are not suitable for growing forests. d. In the past, yes, but in recent decades forests have been overharvested, leading to a downturn in the industry.
Option B, Forestry is an important part of the economy of the Inland South. The option which best describes the given statement is "Yes, the warm, moist climate allows trees to grow quickly. "What is forestry? Forestry refers to the management, cultivation, and study of trees, forests, and their associated habitats.
It includes silviculture, which involves the growth and cultivation of trees for commercial purposes such as timber and paper production, as well as conservation efforts to protect and manage natural forests. Forestry in the Inland South The Inland South is a region that includes parts of the southeastern United States. Forestry is a crucial component of the region's economy due to its warm, moist climate that allows trees to grow quickly. It produces a variety of hardwoods, softwoods, and pine, which are harvested for paper and lumber manufacturing.
Forestry not only helps to create job opportunities for people in the area, but it also aids in maintaining the region's ecological integrity, and promotes the conservation of its natural resources. Thus, forestry is an important part of the economy of the Inland South. The answer is option B.
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A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is
p=$35 + 2800/D - 4900/D^2, for D>1.
Where p is the price per unit in dollars and D is the demand per month. The company is seeking to maximize its profit. The fixed cost is $1,100 per month ad the variable cost (cv) is $45 per unit.
What is the number of units that should be produced and sold each month to maximize its profit?
Show that your answer to Part (a) maximizes profit.
Producing and selling approximately 22 units per month will lead to maximum profit for the company.
To determine the number of units that should be produced and sold each month to maximize profit, we need to find the quantity (D) that maximizes the profit function. The profit function is given by:
Profit = (D × p) - [(Fixed Cost) + (Variable Cost per unit × D)]
Substituting the given demand-price relationship equation (p = $35 + 2800/D - 4900/D^2) and the cost values (Fixed Cost = $1,100, Variable Cost per unit = $45) into the profit equation, we get:
Profit = (D × ($35 + 2800/D - 4900/D^2)) - ($1,100 + $45D)
Expanding and simplifying the equation further:
Profit = $35D + 2800 - 4900/D - $1,100 - $45D
Combining like terms:
Profit = - $10D - 2100 + 2800 - 4900/D
Profit = - $10D - 2100 + 2800 - 4900/D
Now, to find the quantity that maximizes profit, we take the derivative of the profit function with respect to D and set it equal to zero:
d(Profit)/dD = -10 + 4900/D^2 = 0
Solving for D, we have:
4900/D^2 = 10
D^2 = 4900/10
D^2 = 490
D = sqrt(490)
D ≈ 22.14
Therefore, the company should produce and sell approximately 22 units per month to maximize its profit.
To show that this quantity maximizes profit, we can analyze the second derivative of the profit function. Taking the second derivative, we have:
d^2(Profit)/dD^2 = 9800/D^3
Since D is positive, the second derivative is always positive, indicating that the profit function is concave up. This confirms that the quantity of 22 units maximizes profit.
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You have just purchased a home and taken out a $420,000 mortgage. The mortgage has a 30 -year term with monthly payments and an APR of 6.32%. a. How much will you pay in interest, and how much will you pay in principal, during the first year? b. How much will you pay in interest, and how much will you pay in principal, during the 20th year (i.e., between 19 and 20 years from now)?
To calculate the interest and principal payments during the first year and the 20th year of the mortgage, we'll need to use the loan amount, loan term, and APR. Here's how you can calculate them:
a. First Year:
Step 1: Calculate the monthly interest rate:
Monthly Interest Rate = (APR / 12) / 100
Monthly Interest Rate = (6.32 / 12) / 100
Monthly Interest Rate = 0.00527
Step 2: Calculate the total number of months in the first year:
Total Number of Months in First Year = 12
Step 3: Calculate the monthly payment using the loan amount, loan term, and APR:
Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where P is the loan amount, r is the monthly interest rate, and n is the total number of months.
Monthly Payment = $420,000 * (0.00527 * (1 + 0.00527)^360) / ((1 + 0.00527)^360 - 1)
Step 4: Calculate the interest paid during the first year:
Interest Paid in First Year = Monthly Payment * Total Number of Months in First Year - Principal Paid in First Year
Principal Paid in First Year = Monthly Payment * (1 - (1 + r)^(-Total Number of Months in First Year)) / r
b. 20th Year:
Step 1: Calculate the total number of months between the 19th and 20th year:
Total Number of Months in 20th Year = (30 - 19) * 12 = 132
Step 2: Calculate the interest paid during the 20th year:
Interest Paid in 20th Year = Monthly Payment * Total Number of Months in 20th Year - Principal Paid in 20th Year
Principal Paid in 20th Year = Monthly Payment * (1 - (1 + r)^(-Total Number of Months in 20th Year)) / r
Perform the calculations using the provided formulas and substitute the values to find the interest and principal payments during the first year and the 20th year.
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