Jodie's Bakery Generates a Yearly Revenue of $6000

question 108

Multiple Choice

Jodie's Bakery generates a yearly revenue of $6000.Throughout the year Jodie spends $1500 on flour,$1000 on fruit,$500 on sugar & spices,$1500 on butter,and employs an assistant whom she pays $1000.Calculate the value of the annual output produced by Jodie's Bakery using the value added method.

• A)$1000
• B)$1500
• C)$4500
• D)$5000
• E)$6000

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal.

Withdrawals

In economic terms, withdrawals refer to the removal of money or resources from an economy, such as savings, taxes, or imports that decrease the flow of funds.

Present Value

Today's valuation of money expected in the future or ongoing payments, as determined by a particular rate of gain.

Compound Interest

The accumulation of money that builds over time in an investment or interest-bearing account as new interest is earned on previous interest that is not withdrawn.