2. Nominal and Real Output

Consider an economy whose sole final product is maple syrup. The following table contains data on its maple syrup output (in liters) and price (in dollars per liter).

a) For each year, compute nominal GDP. What is the growth rate of nominal GDP in 2016?

b) For each year, compute real GDP in 2012 dollars. Using this measure, what is the real GDP growth rate in 2016?

c) For each year, compute real GDP in 2014 dollars. Using this measure, what is the real GDP growth rate in 2016?

d) Which growth rate is higher, and why? Which growth rate is a more informative measure of economic performance, and why?

PLEASE HELP ME FIND THE INTEREST EXPENSE AND CASH. EVERYTHING ELSE IS CORRECT THANK YOUUU

6. The information below is taken from the December 31, 2016 adjusted trial balance of Brittany Company:

The inventory on December 31, 2016 was $165,000. The income tax rate is 30%. There were 25,000 shares of on stock outstanding throughout the year.

Required:

• Prepare a schedule of the cost of goods sold.
• Prepare a 2016 income statement for Brittany Company, using a multiple-step format (disregard earnings per share).
• Prepare a 2016 income statement for Brittany Company, using a single-step format (disregard earnings per share).

ANSWER:

On June 1st 2016, Professor Cole bought an investment property for $400,000. He took out a standard 30 year fixed mortgage for $242000 at a nominal rate of 5.500% per year, with uniform monthly payments starting one month from the date of closing. He closed on June 1st, and paid on the first of each month after that. He paid all of the loans closing costs. What were his monthly mortgage payments? $  
When he filed his taxes for 2016, he needed to calculate the interest paid on the mortgage. He had made 6 payments, because the January 1st 2017 payment covered the interest charged in December 2016. How much interest did he pay in 2016? $  
Next year Professor Cole had to calculate his interest paid on the mortgage in 2017. How much interest was paid in 2017? $

On June 1st 2016, Professor Cole bought an investment property for $400,000. He took out a standard 30 year fixed mortgage for $238000 at a nominal rate of 5.500% per year, with uniform monthly payments starting one month from the date of closing. He closed on June 1st, and paid on the first of each month after that. He paid all of the loans closing costs.

a.) When he filed his taxes for 2016, he needed to calculate the interest paid on the mortgage. He had made 6 payments, because the January 1st 2017 payment covered the interest charged in December 2016. How much interest did he pay in 2016?

b.) Next year Professor Cole had to calculate his interest paid on the mortgage in 2017. How much interest was paid in 2017?

On Jan 1, 2016, Zahid sold a truck to Othaim in exchange for a $200,000, 6% (payable annually), 5 year, notes payable. On Jan 1, 2016, the market rate was 8%.