20 POINTS !!!!! Based on your budget, which transportation option is the best financial decision for you? Explain your answer in

Response:

Initial investment of $700

Interest rate     9%

Duration       6 years

Annual interest: (700x0.09)    =63

Total interest after the loan term: (63x6) = 378

Answer: $36,000 loss

Explanation:

Initial cost = $250,000

Shipping fees = $3,500

Setup fees = $2,500

Annual maintenance = $5,000

Depreciation amount = $25,000

Proposed selling price = $200,000

Total costs involved = $(250,000 + 3,500 + 2,500 + 5,000)

Total costs involved = $261,000

Depreciation amount = $25,000

Equipment's book value = $261,000 - $25,000 = $236,000

Calculating gain/loss = Book value - selling price

Gain/loss = $236,000 - $200,000

$36,000 loss

Answer:

The result is $12.

By applying the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Consequently, the total money generated in the banking system is $12. It can be concluded that money creation by banks is a mechanism whereby banks accept deposits from clients and provide loans to borrowers after subtracting the cash or reserve ratio.

Response:

a. Due to the rise in corn prices, the supply of corn would grow. Simultaneously, the acreage allocated for corn farming would expand.

b. The primary factor behind the change in corn production acreage is:

A. The increased price indicates to suppliers that corn is becoming more valuable.

Clarification:

As corn is essential for producing ethanol biofuel, the demand and supply for corn rise to keep pace with the climbing prices. Suppliers, for their part, respond by increasing production through the use of a larger amount of land dedicated to corn cultivation. This depicts the usual interaction of market forces that influence market equilibrium.