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1
1.A man bought a machine for P90.546 which has useful life of 9 years. It has a salvage value of P20,000. Using the Sinking Fund Method with i = 21% cpd. annually, find the book value at year 3
2. The following equations describe the economy of Northern Illinois:
C = 400+0.8(Y-T)
T = 250
I = 700 – 40r
G = 600
(M/P)d = 0.5Y – 150r
M = 3000
P = 3.0
a. What is the equation that describes the IS curve? (Express Y as a function of r.)
b. What condition is satisfied along the IS curve?
c. What is the equation that describes the LM curve? (Express Y as a function of r.)
d. What condition is satisfied along the LM curve?
e. What are the equilibrium levels of Y and r?
f. Calculate the levels of consumption, savings, and investment.
3. People who spend more time and effort investigating the advantages and disadvantages of different automobile models when they go to purchase one than they do investigating the strengths and weaknesses of presidential candidates are saying, in effect, that a. a good car is more important to their well-being than a good president. b. they expect to use the information on the merits of alternative cars to greater personal advantage than they could information on the merits of alternative presidential candidates c. they are irrational, because the choice of a president is obviously far more important than the choice of a car. d. they do not think it matters who is elected president,
Expert Solution
1.
Ans.- Initial cost of machine P90,546
Salvage value P20,000
Useful life 9 year
Intrest (i) =12% or 0.21
Depreciable cost =90546-20,000
=70,546
Depreciable cost at the end of 9th yr.
which needs to be genreted through constant esual installment.
R=(V-V3) x [i]
(1+i)2 -1
Annual depn.=(90546-20,000)x[0.21]
1+0.219-1
=P7054XO.11
=9.7760
Depn.at year -3 (Accrralated) =3x7760
=P23280
Book value at year -3 =P90546-P23280
=P67266
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3.
People who spend more time analysing advantages or disadvantages of a automobile say a car, than they spend on analyzing who could serve better the government.
They think that while purchasing a car and its perks is for own use and its efficiency will be of personal importance while they think a good or bad government doesn't effect them personally. It is bad for all people and they doesn't understand the significance of their vote. For them, time spend on presidential candidates is of less usefulness than spend on car purchase.
Hence B option is most appropriate
They think merits of car is of greater personal advantage as compare to time spend in information of presidential candidates.
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