Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 7%, consider the present and future values of this gift, depending on when you become engaged.

Complete the first row of the table by determining the value of the gift in one and two years if you become engaged today.

Present Value Value in One Year Value in Two Years
Date Received (Dollars) (Dollars) (Dollars)
Today 1,000.00 ? ?
In 1 year ? 1,000.00
In 2 years ? 1,000.00

Complete the first column of the table by computing the present value of the gift if you get engaged in one year or two years.

The present value of the gift is __________ if you get engaged in two years than it is if you get engaged in one year.

Answers

Answer 1

Answer:

Future Value in One Year = $1,070.00

Future Value in Two Years = $1,144.90

Present Value of amount received in 1 year = $934.58

Present Value of amount received in 2 years = $873.44

The present value of the gift is less/lower if you get engaged in two years than it is if you get engaged in one year.

Explanation:

These can be done as follows:

Present Value Value in One Year Value in Two Years

Date Received (Dollars) (Dollars) (Dollars)

Today 1,000.00 1,070.00 1,144.90

In 1 year 934.58 1,000.00

In 2 years 873.44 1,000.00

a. Complete the first row of the table by determining the value of the gift in one and two years if you become engaged today.

To do this, we use future value (FV) formula as follows:

Future Value = A * (1 + r)^n ........................................ (1)

Where;

A = Amount received to day = $1,000.00

r = interest rate = 7%, or 0.07

n = number of years

Using equation (1), we therefore have:

Future Value in One Year = 1,000.00 * (1 + 0.07)^1 = $1,070.00

Future Value in Two Years = 1,000.00 * (1 + 0.07)^2 = $1,144.90

b. Complete the first column of the table by computing the present value of the gift if you get engaged in one year or two years.

To do this, we use present value (PV) formula as follows:

Present Value = A / (1 + r)^n ........................................ (2)

Where;

A = Amount received in specified year = $1,000.00

r = interest rate = 7%, or 0.07

n = number of years

Using equation (2), we therefore have:

Present Value of amount received in 1 year = 1,000.00 / (1 + 0.07)^1 = $934.58

Present Value of amount received in 2 years = 1,000.00 / (1 + 0.07)^2 = $873.44

Since $873.44 is less/lower than $934.58, we therefore have:

The present value of the gift is less/lower if you get engaged in two years than it is if you get engaged in one year.

Answer 2

The correct statement will be that the present value of the wedding gift is $873.43 if you get engaged in two years, then it is $934.57 if you get engaged in one year when the future value is $1000.

The future value of wedding gifts will be $1070.00 and $1144.9 at the end of first and second year respectively. The computation for the values can be done by applying values to the formula.

Calculation of future value and present value

The present value of the gift can be calculated as using the formula below,

$\rm Present\ Value= \dfrac{Future\ Value}{1+ Fixed\ Interest\ Rate}\\\\\\\\\rm Present\ Value= \dfrac{\$1000}{1.07}\\\\\\\rm Present\ Value= \$ 934.57$

The present value for one year is 934.57 USD.

Now for two years,

$\rm Present\ Value= \dfrac{\$934.57}{1.07}\\\\\rm Present\ Value= \$873.43$

Now to calculate the future value when the present value is considered to be as $1000. We will use the formula below,

$\rm Future\ Value\ for\ One\ Year=Present\ Value\ +\ \dfrac{Present\ Value\ x\ Time\ x\ Interest\ Rate}{100}\\\\\\\rm Future\ Value\ for\ One\ Year= 1000\ +\ \dfrac{1000\ \rm x\ 1\ \rm x\ 7}{100}\\\\\\\rm Future\ Value= \$1070$

For the end of two years, the future value will be,

$\rm Future\ Value= Present\ Value\ (1+\dfrac{Interest}{no.\ of\ Compoundings})^n^t\\\\\\\rm Future\ Value= 1000\ (1+\dfrac{0.07}{1})^1^ x\ ^2\\\\\rm Future\ Value= \$1144.9$

Hence, the value of the gifts can be ascertained as per the calculations above.

Learn more about Future Values, here:

https://brainly.com/question/1759639

Related Questions

what will cause demand to change?

Answers

Demand for a good is affected by the price, and the type of good. If the price is an inferior good the demand decreases when the price goes down, and vice versa for a normal good. So we can say for certain that a price change will always affect demand. So the answer is A.

Principles of Investment
Assignment Active
Monetary Policy and Investments
Juan is always researching different investment options.
A few weeks ago he noticed some nice homes for sale in
his neighborhood. The listed prices were below market
value. Today on the news he heard that the Federal
Reserve lowered interest rates for banks and that banks
have lowered interest rates for home mortgages in turn.
As a result, there has been a huge boom in the number of
people purchasing homes.
What is most likely to happen as a result of the
change in interest rates?
O Housing prices will go up and down due to
changing fiscal policy.
O The market will experience more demand and the
price of houses will go up.
O The price of houses will go down in response to the
decreased demand.
O The prices for homes in that area will be stable due
to the new monetary policy.
4

Answers

As a result of the decrease in interest rates, Option B. The market will experience more demand, and the price of houses will go up.

The demand for houses will go up and housing prices will increase, causing individuals who were on the fence about buying a house to act swiftly before prices rise too much. As a result, housing sales are expected to surge. Lower interest rates, on the other hand, are often linked to increased borrowing and spending in the economy. Because borrowing money is now less expensive, more people are more willing to do so and the money supply in circulation rises.

The decrease in interest rates could cause more individuals to be more willing to purchase a home due to lower interest rates and more affordable mortgage payments. Lowering interest rates for banks and home mortgages, as well as lowering the cost of borrowing, encourages more people to buy houses, resulting in a greater demand for homes and, in turn, driving up the prices of homes.

As a result, option B is correct: the market will experience more demand, and the price of houses will go up. Therefore, the correct option is B.

The question was incomplete, Find the full content below:

Juan is always researching different investment options. A few weeks ago he noticed some nice homes for sale in his neighborhood. The listed prices were below market value. Today on the news he heard that the Federal Reserve lowered interest rates for banks and that banks have lowered interest rates for home mortgages in turn. As a result, there has been a huge boom in the number of people purchasing homes. What is most likely to happen as a result of the change in interest rates?

A. Housing prices will go up and down due to changing fiscal policy.

B. The market will experience more demand and the price of houses will go up.

C. The price of houses will go down in response to the decreased demand.

D. The prices for homes in that area will be stable due to the new monetary policy.

Know more about Interest rates here:

https://brainly.com/question/29415701

#SPJ8

On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,110 in assets to launch the business. On December 31, the company’s records show the following items and amounts.

Cash $ 14,550 Cash withdrawals by owner $ 1,120
Accounts receivable 12,940 Consulting revenue 12,940
Office supplies 2,400 Rent expense 2,640
Land 45,860 Salaries expense 5,920
Office equipment 17,020 Telephone expense 800
Accounts payable 7,820 Miscellaneous expenses 620
Owner investments 83,110

Answers

The preparation of the stockholder equity is presented below:

Statement of stockholder equity

J.Ernst, Capital, December 1 $ 0

Add: Investment by owner $83,100

Add: Net Income $2,960

Less: Withdrawals by owner ($1,120)

J.Ernst, Capital, December 31 $84,940

Working note:

The preparation of the income statement is presented below:

Income Statement

Consulting revenue $12,940

Less:

Rent expense $2,640

Salaries expense $5,920

Telephone expense $800

Miscellaneous expenses $620

Total expenses ($9,980)

Net Income $2,960

Therefore we can conclude that the ending balance of the stockholder equity is $84,940

Learn more about the expense here: brainly.com/question/19873299

planning practices are different from organization to organization. discuss

Answers

Answer:

planning can be referred to as the things you think for the future to happen and organization is a group of people who works together.

Hopes this answer helps you.

The small town of Honnavara. the Arabian Sea and on the banks of the River Sharavathi?

Answers

Honnavara is a small town in the uttara kannada district which is located in the southwestern part of the indian state of karnataka the town is situated on the coast of the arabian sea

The Arabian sea

This is a body of water that lies between the arabian peninsula and the indian subcontinent the arabian sea is part of the indian ocean and is bordered by several countries

including india pakistan oman yemen and somalia the town of honnavara is also located on the banks of the river sharavathi which is a major river in the region

Read more on Arabian sea here:https://brainly.com/question/28367029

#SPJ1

Consider that you are working in a company that has just announced the termination of 20 percent of the organization’s workforce. You are not affected by this action, but several of your friends will lose their jobs. This past week several other employees not affected by this job loss appear to be quite stressed out by the news. You have a good relationship with the HR representative for your work team. What might you suggest she do in this situation?

Answers

Consider that you are working in a company that has just announced the termination of 20 percent of the organization’s workforce.-------------. I would suggest that in this situation the company can use other technology which will hire employees and should analyze the market and company in a broad manner so they can reduce the termination.

What is a company?

A company is a natural legal entity or an enterprise that is formed by the association of a group of people. A company is normally engaged in an economic activeness, like to carry commercial activities on a business for gain.

A company can be a commercial or an industrial enterprise and the people in it work together towards achieving a common objective or goal which is basically for profit earnings.

In case of termination, I would suggest that in this situation the company can use other technology which will hire employees and should analyze the market and company in a broad manner so they can reduce the termination.

Learn more about company here:

https://brainly.com/question/29733060

#SPJ1

Which of the following will be needed to adapt to the changing landscape of business in the United States? Check all that apply.
Identification of specific geographic population centers
Improved intercultural communication skills
Growing minority population

Answers

The following will be needed to adapt to the changing landscape of business in the United States;

Identification of specific geographic population centers

Improved intercultural communication skills

Growing minority population

Hence, all the above are applied.

What is changing landscape of business?

A Business Landscape is a related representation of the most important features that make up a business and work together to achieve something of value. There are no restrictions on what can be defined in a landscape. Hence, an overturn or negative or positive development on those features that inform a business is said to be the changing landscape of business.

Therefore, the correct answer is as given above

learn more about business landscape: https://brainly.com/question/7027022

#SPJ1

WHOEVER ANSWERS NOW I WILL GIVE BRANLIEST!!! And more!! HURRY
Supply and Demand Activity: Student will research consumer demand for a high tech product (smart phone, tablet, etc.) and graph annual sales volume against average price. He/She will explain in the graph’s caption the reason for the price-volume relationship and present findings.

Answers

The Title of my Supply and Demand Activity is : Relationship between Annual Sales Volume and Average Price of Smartphones

The Findings are that there was :

Inverse RelationshipPrice ElasticityMarket PenetrationTechnological AdvancementWhat is the Supply and Demand?

Graph shows annual sales volume and average price of smartphones over a period, with years on the x-axis and sales and price on the y-axis. The data shows annual sales volume at different prices, with a trend line.

Findings: Inverse relationship between sales volume and price. As prices rise, sales drop; and vice versa. This shows that buyers consider cost when choosing tech items, such as smartphones. Smartphones have price elasticity, meaning consumers will buy more when prices are low and less when prices are high.

Learn more about Supply and Demand from

https://brainly.com/question/1222851

#SPJ1

Your grandparents would like to share their fortune with you. They offer you money under one of the following scenarios: 1. $7,250 per year at the end of each of the next eight years. 2. $49,650 (lump sum) now 3. $98,650 (lump sum) eight years from now Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value

Answers

Answer:

$98,650 (lump sum) eight years from now yields the highest present value.

Explanation:

This can be determined as follows:

1. Calculation of the present value of $7,250 per year at the end of each of the next eight years.

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = present value of $7,250 per year at the end of each of the next eight years = ?

P = Annual payment = $7,250

r = discount rate = 8% or 0.08

n = number of years = 8

Substitute the values into equation (1), we have:

PV =$7,250 * ((1 - (1 / (1 + 0.08))^8) / 0.08)

PV = $41,663.13

2. Calculation of the present value of $49,650 (lump sum) now

Since now is the present time, the present value of $49,650 (lump sum) now is still equal to $49,650.

3. Calculation of the present value of $98,650 (lump sum) eight years from now

This can be calculated using the present value formula as follows:

PV = FV / (1 + r)^n ................... (2)

Where:

PV = present value of $98,650 (lump sum) eight years from now = ?

FV = future value or (lump sum) eight years from now = $98,650

r = discount rate = 8% or 0.08

n = number of years = 8

Substitute the values into equation (2), we have:

PV = $98,650 / (1 + 0.08)^8

PV = $53,297.53

Comparison of the present values

1. Present value of $7,250 per year at the end of each of the next eight years = $41,663.13

2. Present value of $49,650 (lump sum) now = $49,650

3. Present value of $98,650 (lump sum) eight years from now = $53,297.53

As can be seen from the above, $98,650 (lump sum) eight years from now yields the highest present value.

Which of the following is an unhealthy motivation for donating money to charitable organizations?
O to help build a better world
O to support a cause that you care about
O to do good for others
O to make yourself feel important

Answers

Answer:

to make yourself feel important

Answer:

The answer would be

O to make yourself feel important

Have a great day!

2018articles using appropriate keywords in your specialised area that interest you and wish to write your final dissertation. Review each paper carefully and make your necessary notes in your own words. Reviewing each article, you can consider reading the introduction section, literature review, methodology, and conclusion. After a successful review of each piece, complete the following task: Give your literature review a title. Cohesively organise your review literature according to these headings; A. Theoretical Review (at most three theories). B. Empirical Review (cohesively arrange the 30 papers), and C. Conceptual Framework. Arrange all your 30 pieces of literature in UMaT referencing style.

Answers

Answer:

C. Conceptual Framework. Arrange all your 30 pieces of literature in UMaT referencing style.

Explanation:

C. Conceptual Framework. Arrange all your 30

Imagine the products are in decline and recommend an extension strategy for each one. Make sure you explain your
A Galaxy chocolate bar
Candy Crush mobile app.
Evian water
Ferrari world.

Answers

All of these products should use a rebranding extension strategy.
Once a product reaches maturity and the market is saturated, it gradually starts to decline.

Because of this, one approach to lengthen the life of a product strategy is to always seek out ways to make it better, different, and even stand out from similar products that have already hit the market.

Rebranding, offering discounts, and looking for new markets are all examples of extension strategy methods. Rebranding is the process of giving an existing product a fresh look and feel in order to set it apart from the competition. For instance, a cosmetics company might provide additional brushes, blenders, or sponges.

To learn more about product, click here.

https://brainly.com/question/22852400

#SPJ1

Question 12 of 40
What type of producer is a construction worker?
O A. A manufacturer
B. A raw-goods producer
C. A builder
D. A service provider
SUBMIT

Answers

Answer:

a builder

Explanation:

A builder is a type of producer is a construction worker. The appropriate response is option C.

Who is a producer ?

Producers are those who cultivate or produce commodities as well as offer services. They assist us in carrying out tasks and are referred to as workers at times. A producer is a type of economic entity that creates or markets products or services. they are the organizations that provide for the economy.

These companies or people create an output by utilizing and integrating the factors of production (land, labor, capital, and technology). The supply side of the marketplace is represented by this production.

Producers are defined even more broadly in certain economics schools and theories, to include federal, state, local, entities. A productive workforce is necessary for an economy to run smoothly.

To learn more about producer

https://brainly.com/question/2648825

#SPj2

Visits to national parks inspire people to plan another trip, to tell their friends, and often, to ask how they can help. We love that! . . . When you get involved, you help ensure that national parks and programs are relevant. Your ideas add strength to the work we do everyday to preserve special places and stories.

Which is the author’s purpose for writing this passage?

to inform
to persuade
to entertain
to reflect

Answers

Answer: To persuade

Explanation:

Answer:

is B

Explanation:edge 2021

When an employee leaves a position, how should the human resources department respond?

A. Post a job description to fill the position as quickly as possible.

B. Review the position to determine whether and when the position

should be filled again.

C.Train another employee to fill the position as quickly as possible.

D. Meet with college career advisors to advertise the position.

Answers

When an employee leaves a position, the right response of the human resources department will be to review the position to determine whether and when the position should be filled again.

What is the role of human resources department?

In management, a Human resources refers to the division of a business that is charged with finding, screening, recruiting as well as training the job applicants. The HR managers also administers employee-benefit programs.

The department of human resources HR is an essential component of any business regardless of an organization's size. The department is mainly tasked with maximizing employee productivity and protecting the company from any issues that may arise within the workforce.

In conclusion, these HR managers plays an important role in helping companies deal with a fast-changing business environment and a greater demand for quality employees in the 21st century.

Answers

Answer:

When a formulary change is in response to a drug's removal from the market.

Explanation:

Question 5 of 10
Which statement best illustrates an example of economic specialization?
A. A business expects each of its employees to understand how to
do a wide variety of jobs.
B. A business focuses on producing screens for phones instead of
manufacturing the entire phone.
C. A business relocates to another country in order to pay lower tax
rates on its products.
D. A business expands to begin manufacturing clothing, designing
software, and exporting crops.

Answers

Answer:

B. A business focuses on producing screens for phones instead of

manufacturing the entire phone.

Explanation:

Economic specialization means the production process in which the firm focused to produced in order to gain more degree of efficiency

So as per the given options, the option B is correct as the business if focused on producing the screens rather manufacturing the overall phone

Hence, all the other options are incorrect

During civil lawsuit, proceedings regarding alcohol, service courts will try to determine if the

Answers

During civil lawsuit proceedings regarding alcohol service, courts will try to determine if the designated driver was present and remained sober.

How do courts determine the presence and sobriety?

During civil lawsuit proceedings involving alcohol service, courts aim to establish whether a designated driver was present and this determination is crucial in cases where establishments or individuals are being held accountable for over-serving alcohol to a patron who later caused harm or injury due to impaired driving.

The court may consider various forms of evidence such as witness testimonies, surveillance footage, receipts indicating non-alcoholic purchases or the designated driver's own account of their sobriety. It court may evaluate the credibility and reliability of the designated driver's actions and statements throughout the relevant time period.

Answers

Answer:

Entrepreneurship

Explanation:

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is A. cash flows from financing activities. B. cash flows from investing activities. C. usually different from year to year. D. cash flows from operating activities.

Answers

Answer:

D. cash flows from operating activities

Explanation:

Operating activities include the functions of a business with respect to providing its goods and services to the market. Operating activities for a company include sales, manufacturing, marketing activities and advertising. The category that is generally considered to be the best measure of a company's ability to continue as a going concern is cash flows from operating activities.

A state statute requires each insurance company that offers burglary insurance policies in the state to charge a uniform rate for such insurance to all of its customers residing within the same county in that state. So long as it complies with this requirement, a company is free to charge whatever rate the market will bear for its burglary insurance policies. An insurance company located in the state files suit in federal district court against appropriate state officials to challenge this statute on constitutional grounds. The insurance company wishes to charge customers residing within the same county in the state rates for burglary insurance policies that will vary because they would be based on the specific nature of the customer's business, on its precise location, and on its past claims.
In this suit, the court should

Answers

In this suit, the court should hold the statute constitutional, because the statute is a reasonable exercise of the state's police power.

What is statute?

A statute is a law that has been passed by a legislature, which is the body that has been given the authority by a constitution to pass legislation, or laws. A statute becomes law and a part of statutory law once it is passed.

The United States Congress is the country's federal assembly. Each state has a legislature that makes laws specific to that state. Statutes are signed into law by the head of the executive branch after they have been passed by the legislature; for federal statutes, this is the president; for state statutes, it is the governor. Codes are collections of statutes arranged thematically.

Learn more about statute

https://brainly.com/question/7582973

#SPJ4

Discuss the statement: ‘Silence is Golden’ in approximately a hundred 300 words, in

relation to ethics in communicating at the workplace.

Answers

Answer:

Silence is golden

Silence is very peace word and it is describing as the golden word. It is the very popular proverb. In the common word we say, it is the better word for everyone to make silence because, without any important topic, unnecessary talk creates bad effort, so it better to remain in the silent zone.

‘Silence is golden’ is the great idiom used by the most nations. Silence is the best policy and everyone have to better understand the value of the make silence.

‘Speech is silver, Silence is golden’ is the full phrase. It is better to maintain the quiet and silent and not say nothing. One should think before saying any words.

There is the comparison in both words listen and silent is same letters but arranged differently.

Latin word

The Latin version of “Silence is Golden” is “silentium est aurum”. “Silentium’ means “Silence” and “aurum” means “Gold or something made of gold”.

It is the tendency of human to talk more and to listen less, the main cause of it is that we have forgotten the art of waiting and allowing ourselves to listen to other viewpoints.

Explanation:

When the person is a silent, they should prefer to keep quiet, so it will be the great think for them. It is abstaining from speaking for the people.

The understanding and learned people say something only that time when talking are necessary and meaningful.

On the other hand, people say that little thing, which expresses the knowledge of them and where it needs to speak.

The one thing is always should in our mind is that whenever you want to speak something, so before saying any word you have to understand the own word.

It displays great ability of everyone, so make good control during speaking and speak related to the subject, what they want to say.

Value of silence

The value of silence is great, especially when it is desirable.

You don’t need to speak every time to create an impression.

Sometimes, people leave better impressions who display the strength of character by remaining quiet and calm during challenging moments.

Remember, that “words are like arrows, you can’t take them back after you let them back.”

Why make silence

When we are silent and waiting, something great inside us keeps on growing, and silence gives birth to creativity, moreover the more we keep silent the less the heart that can be hurt.

There are times when silence become the most potential way of communication and it’s more effective than words, for instance sometimes a silent angry look from our parents enough to let us feel their fury and agony, and this angry look capable of making us behave better than harsh reprimand or scolding.

Lovers all over the world prefer to communicate with silent, It’s more romantic and it’s a famous telepathy between two people who have strong feelings for each other.

Undeniably, silence needs a special kind of power and authority of mind, to say nothing is more difficult than expressing anger, happiness, love, betrayal with words.

That’s why it’s a quite difficult conflict between a man and his mind to a long journey of controlling our senses and reactions.

If U.S. government statistics counted education spending as part of the investment, which of the following would rise, which would fall, and which would remain unchanged? You might use rise, fall, and stay unchanged more than once each or you might not.
Consumption Investment
Gross domestic product

Answers

Because the cost of schooling has no bearing on consumption, consumption will remain unchanged.

GDP: What is it?

The gross domestic product is the total added goods and services produced in an economy over the course of a year (GDP). One way to determine a country's total growth rate is to look at its GDP, which is a measure of how quickly a country is growing and developing.

While determining investment, education costs are taken into account:

Consumption will remain the same because investing in education has little impact on it.The investment will rise because education fees are now viewed as investments.Gross domestic product (GDP) spending will go up, but GDP will grow because of the good growth that education spending brings about.

Learn more about gross domestic product: https://brainly.com/question/14768180

#SPJ1

4. What was the closing price of the corporation on July 26th?

Answers

The closing price of a security, such as a stock or a commodity, is the final price at which it was traded on a particular trading day. The calculation of the closing price depends on the market in which the security is traded.

What is closing price?

If you have access to the historical data of the security, you can easily calculate the closing price by finding the last recorded price of the security on a given trading day. Many financial websites and data providers offer this information in their daily summary of a security's trading activity.

However, if you are looking to calculate the closing price in real-time, you can use a real-time data provider that offers the latest market quotes for the security you are interested in. The closing price is usually determined at the end of the trading day, which varies depending on the market and the security being traded.

In general, to calculate the closing price of a security, you need to find the last traded price of the security for the day. This information can be obtained from various sources, such as stock exchange websites, financial news websites, or real-time data providers. Once you have this information, you can use it to calculate the closing price of the security for that particular trading day. An overview was given.

Learn more about closing price on

https://brainly.com/question/30155035

#SPJ1

Should firms require higher rates of return on foreign projects than on identical projects located at home? Explain.

Answers

Probably yes coming from s middle schooler yes because it will be good to work in you house because it’s a better and comfortable environment

You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university. Over 90 percent of your clientele consists of college students. College Computers is not the only firm that builds computers to meet this university’s specifications; indeed, it competes with many manufacturers online and through traditional retail outlets. To attract its large student clientele, College Computers runs a weekly ad in the student paper advertising its “free service after the sale” policy in an attempt to differentiate itself from the competition. The weekly demand for computers produced by College Computers is given by Q = 1,400 − 4P, and its weekly cost of producing computers is C(Q) = 1,200 + 2Q2.

If other firms in the industry sell PCs at $300, what quantity and price of computers should you produce to maximize your firm’s profits?

Instructions: Round your response to the nearest whole number.

Quantity: _____ computers

Instructions: Round your response to the nearest penny (two decimal places).

Price: $_____

What long-run adjustments should you anticipate?

multiple choice
Entry by other firms along with increased profits.
Exit by other firms along with decreased profits.
Entry by other firms, reducing your profits.
Exit by other firms, increasing your profits.

Answers

The quantity and the price of computers that should be produced to maximize the firm’s profits are 78 units and 330.50 respectively.

The weekly demand for computers is given as: Q = 1,400 − 4P

Therefore, the inverse weekly demand for computers will be: P = 350 - 0.25Q

The total revenue will be gotten by multiplying the price and quantity. This will be: TR = (350 - 0.25Q)Q = 350Q - 0.25Q²

Therefore, marginal revenue will be:

MR = 350 - 0.5Q

The weekly cost of producing computers is C(Q) = 1,200 + 2Q² Therefore, the marginal cost will be:

MC = 4Q

The profit maximizing condition will be:

MR = MC

350 - 0.5Q = 4Q

4.5Q = 350

Q = 77.78 = 80 approximately

The quantity produced should be 80 units.

Since P = 350 - 0.25Q

P = 350 - 0.25(78)

P = 350 - 19.50

P = 330.50

The price is 330.50

Therefore, the long-run adjustment that should be anticipated is the entry by other firms, reducing your profits.

Read related link on:

https://brainly.com/question/25048302

These are selected 2022 transactions for Kingbird Corporation. Jan. 1 Purchased a copyright for $126,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $56,400. Sept. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events.

Answers

Answer:

Dec. 31

Dr Amortization Expense $21,000

Cr Copyright $21,000

Dec. 31

Dr Amortization Expense $11,750

Cr Patent $11,750

Dec. 31

No entry

Explanation:

Preparation of all adjusting entries at December 31 to record amortization required by the events.

Dec. 31

Dr Amortization Expense $21,000

Cr Copyright $21,000

($126,000/6)

(To record amortization of copyright)

Dec. 31

Dr Amortization Expense $11,750

Cr Patent $11,750

(To record amortization of patent)

Dec. 31

No entry

(To record amortization of goodwill)

Calculation for 2020 amortization

First step is to calculate the Annual amortization

Annual amortization = $56,400/4

Annual amortization= $14,100

Now let calculate 2020 amortization

2020 amortization = $14,100 x 10/12

2020 amortization= $11,750

9. Is it ever okay to argue or disagree with your boss? Why?

Answers

Yes, Is it ever okay to disagree with your boss in a case whereby the ethics of the organization is not followed.

What is ethics?

As it investigates what is morally right or wrong, just or unjust, ethics looks at the intellectual justification for our moral judgements.

The study of ethics, often known as moral philosophy, "involves systematizing, defending, and endorsing conceptions of good and bad action," according to Wikipedia. Axiology is a subfield of philosophy that consists of the fields of ethics and aesthetics. These fields are concerned with issues of value.

Answers

Dino Dog Collars calculates the cost of producing 25,000 dog collars using activity-based costing. The total estimated cost, cost per collar, and bid price are calculated with a 40% markup.

What is the importance of ABC to management decision making?

ABC is an accounting methodology that assigns indirect costs to products or services based on the activities that generate those costs. Unlike traditional costing methods, which allocate indirect costs based on a single cost driver, ABC allocates costs based on multiple cost drivers, providing a more accurate picture of a product's or service's true cost. ABC's value to management decision making stems from its ability to provide more accurate and relevant cost information. Managers can use ABC to determine which activities are causing costs, where inefficiencies exist, and how to optimise processes to reduce costs and increase profitability. ABC assists managers in making informed pricing decisions by providing a better understanding of the true cost of products and services.

To Know more about Management Visit:

brainly.com/question/18520039

#SPJ1

Current market trends and consumer preferences across the globe

Answers

Answer:

Consumers Will Abandon Brands That Don’t Support Their Values In Favor Of Those That Do. How To Meet Reimagined Consumers Where They Are, Building New Loyalty & Revenue Streams. Strategy. Consumer Values. 25K Consumers Surveyed. 14 Industries.

I HOPE THIS HELPS PLS BRAINLIST?

Other Questions