The amount of capital changes due to investment and depreciation. Investment increases the amount of capital, and depreciation decreases it. The total amount spent on new capital is known as gross investment. The change in the value of capital is called net investment. Net investment equals gross investment minus depreciation.
Question 1
Michael is an internet service provider. On December 31, 2020, he purchased a business that included servers and a shop for $391.
During 2021 the business grew and Michael purchased new servers for $510. The market value of some of their old servers dropped by $78.
How much was Michael's gross investment during 2021?
Response:
How much was Michael's depreciation in 2021?
Response
How much was Michael's net investment during 2021?
Response
How high was Michael's capital during 2021?
Gabriel is a student, but he also gives golf lessons on Saturdays. That job earns him an income of $20,006 a year, after taxes.
As of early 2021, Gabriel's wealth was worth $998 and consisted of books, DVDs, and golf clubs; In addition, he had a savings bank account with a balance of $5,013. In 2021 the interest earned on his savings account was $318, and he spent a total of $15013.5 on consumer goods and services. There was no change in the market values of his books, DVDs and golf clubs.
How much did Gabriel save in 2021?
What was the value of his wealth at the end of 2021?
- Capital And Investment The Amount Of Capital Changes Due To Investment And Depreciation Investment Increases The Amoun 1 (24.34 KiB) Viewed 28 times