You purchased an automobile two years ago for $10,000 . Its current market price is $5,000 . and the expected market value one year from now is $4,500 . If the interest rate is 10 percent, how much will it cost you to keep the car for an additional year (over and above operation and maintenance costs)?
a. $500
b. $1,000
c. $1,500
d. $5,000
B
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Economic growth can be portrayed as a(n)
A. movement from a point on to a point inside a production possibilities frontier. B. outward shift of the production possibilities frontier. C. movement from one point to another point on a fixed production possibilities frontier. D. inward shift of the production possibilities frontier.
As a knowledgeable investor in 2007, you should have realized that as interest rates fell, bond prices would
A. also fall. B. rise. C. become more volatile, like stock prices. D. fall but not by as much as stock prices.
Exhibit 17-1: Global Comparison of Government Surpluses and Deficits as a Percentage of GDP, 2016 ? Country Surplus (+) or Deficit (-) as a percent of GDP Canada -1.10 Iceland 12.57 Latvia 0.06 Norway 3.99 Spain -4.51 United States -4.94? Given the information in Exhibit 17-1, which of the following statements is correct?
A. Canada was the closest of the countries shown to balancing its budget. B. Norway likely had to sell government securities to finance its overspending. C. Iceland experienced the largest deficit of the countries shown. D. The national debts of Canada, Spain and United States increased in 2016.
Marginal cost can be defined as the:
A. Change in total fixed cost resulting from one more unit of production B. Change in total cost resulting from one more unit of production C. Change in average total cost resulting from one more unit of production D. Change in average variable cost resulting from one more unit of production