If you want to have $2,500 in two years, you should deposit 99.26 each month if you can earn 5% per year.
What is meant by money deposit?Money held in a bank is referred to as a deposit in the financial industry. When money is transferred to another party for safekeeping, the transaction is known as a deposit. A part of money, however, that is used as security or collateral for the delivery of a good is referred to as a deposit.
Exactly what does a bank deposit entail?You make a deposit when you add money to your bank account. To build savings and generate interest, you should put money in a bank. For money you can withdraw at any time, a demand deposit is made. A time deposit is an investment for the long term.
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Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.
Account Title Debits Credits
Cash35,500
Accounts receivable43,000
Supplies3,000 Inventory63,000
Notes receivable23,000
Interest receivable0
Prepaid rent2,500
Prepaid insurance9,000
Office equipment92,000
Accumulated depreciation 34,500
Accounts payable 34,000
Salaries payable 0
Notes payable 53,000
Interest payable 0
Deferred sales revenue 3,500
Common stock 81,000
Retained earnings 36,000
Dividends7,000
Sales revenue 161,000
Interest revenue 0
Cost of goods sold85,000
Salaries expense20,400
Rent expense12,500
Depreciation expense0
Interest expense0
Supplies expense2,600
Insurance expense0
Advertising expense4,500
Totals 358,600 358,600 Information necessary to prepare the year-end adjusting entries appears below.1. Depreciation on the office equipment for the year is $10,300.2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $900.3. On October 1, 2021, Pastina borrowed $50,600 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.4. On March 1, 2021, the company lent a supplier $20,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.5. On April 1, 2021, the company paid an insurance company $6,600 for a one-year fire insurance policy. The entire $6,600 was debited to prepaid insurance.6. $560 of supplies remained on hand at December 31, 2021.7. A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.8. On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent.Prepare closing entries.
The necessary December 31, 2021, adjusting journal entries are: Debit Depreciation expenses $10,300, Credit Accumulated depreciation $10,300.
Journal entriesPastina Company Adjusting entries
Debit Depreciation expenses $10,300
Credit Accumulated depreciation $10,300
Debit Wages expense $900
Credit Wages payable $900
Debit Interest expense $1,518
($50,600 × 12% × 3/12)
Credit Interest payable $1,518
Debit Interest receivable $1,373
($20,600 × 8% × 10/12)
Credit Interest revenue
Debit Prepaid insurance $4,125
($6,600 × 15/24)
Credit Insurance expense $4,125
Debit Supplies expense $340
($900 − $560)
Credit Supplies $340
Debit Sales revenue $2,300
Credit Unearned revenue $2,300
Debit Rent expense $600
Credit Prepaid rent $600
Therefore the necessary December 31, 2021, adjusting journal entries are: Debit Depreciation expenses $10,300, Credit Accumulated depreciation $10,300.
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Which of the following is not addressed by a government assistance program? (1 point)
O food insecurity
O health care issues
O housing
O travel
The travel is not addressed by a government assistance program. Thus option (D) is correct.
What is government?A government is the system of politics for running the nation. There are different forms of government like democracy, aristocracy, monarchy, and oligarchy.
A government makes rules and order for running the nation, state, or any political unit. A government makes defense laws, foreign policy, budget and sources of revenue and expenditure for a nation.
The travel is not addressed by a government assistance program. Therefore, option (D) is correct.
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Rachel wants to borrow $8,000. She is willing to pay back $8,380 in 6 months. What interest rate will she pay?
The interest rate is the percentage charged or earned on a loan or investment, representing the cost of borrowing or the return on investment. Rachel will pay an interest rate of approximately 0.7917% for the 6-month loan.
To calculate the interest rate Rachel will pay, we can use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal (P) is $8,000, the amount Rachel wants to borrow, and the interest (I) is $8,380 - $8,000 = $380, the amount she will pay back. The time (T) is 6 months.
Plugging the values into the formula, we have:
$380 = $8,000 x Rate x 6
Rate = $380 / $48,000
Calculating the division:
Rate = 0.00791666...
Converting to a percentage:
Rate ≈ 0.7917%
Therefore, Rachel will pay an interest rate of approximately 0.7917% for the 6-month loan.
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To receive the full benefit from diversification, one needs to
buy over 100 stocks. True or False
False. One does not need to buy over 100 stocks to receive the full benefit from diversification. The concept of diversification is based on spreading investments across different assets or securities with the goal of reducing risk. By investing in a variety of assets that are not perfectly correlated, an investor can potentially reduce the impact of any individual asset's performance on the overall portfolio.
The number of stocks needed for effective diversification depends on several factors, including the investor's risk tolerance, investment goals, and the level of diversification desired. While it is true that adding more stocks to a portfolio can help to further diversify, there is no specific number, such as 100, that guarantees optimal diversification.
Diversification is about achieving a balance between risk and return. By holding a diversified portfolio of stocks across different industries, sectors, and regions, investors can potentially minimize the impact of negative events on their overall portfolio performance. However, there are diminishing marginal returns to diversification, meaning that the benefits of diversification become less significant as the number of stocks in the portfolio increases.
The key principle of diversification is to invest in a mix of assets that have different risk-return characteristics. This can include stocks, bonds, commodities, real estate, and other investment instruments. By spreading investments across these different asset classes, investors can potentially reduce the risk associated with any single asset or sector.
It is important to note that diversification does not eliminate all investment risk. While it can reduce the impact of specific risks, such as company-specific or industry-specific risks, it cannot eliminate systemic risks that affect the entire market. Therefore, even with a diversified portfolio, investors are still exposed to market-wide risks.
The optimal level of diversification for an investor depends on their individual circumstances and preferences. Some investors may find that a well-diversified portfolio of 20-30 stocks is sufficient to achieve their goals, while others may prefer a larger number of stocks or a combination of stocks and other assets. It is recommended that investors seek professional advice or conduct thorough research to determine the appropriate level of diversification based on their specific needs and risk tolerance.
In conclusion, while diversification is an important principle in investment, there is no fixed number of stocks required to achieve its benefits. The goal of diversification is to spread investments across different assets to reduce risk, and the level of diversification should be tailored to individual investors' goals and risk tolerance.
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A company's pr efforts are often aimed at doing what? a. getting publicity. b. reducing press releases. c. getting more ads. d. comparing ad prices. please select the best answer from the choices provided a b c d
Answer:
b. reducing press releases
Explanation:
Press releases can be negative a lot of the time, so the PR works to reduce the negativity brought by the press about the company.
who is responsible for making wake-up call
Answer:
A wake-up call is a telephone call made by a telephone operator to a guest at a time requested by the guest. It is a telephone call to wake up a sleeping guest. It is common practice for the telephone receptionist/department to receive the request for a wake-up call directly from the guest.
Explanation:
___refers to an environment in which cultural, group, and individual differences are acknowledged, accepted, and viewed as significant contributors to the
entirety.
ООО
A. Xenocentrism
B. Pluralism
c. Biculturalism
D. Ethnocentrism
E. Tokenism
Answer:
A
Explanation:
so i've been researching and the closest thing is xenocentrism because it talks about engaging in another person's culture while c talks about having 2 cultures in a country and the rest is about criticizing other cultures other from their own.
MARKING BRAINIEST
Type the correct answer in the box.
Spell all words correctly.
What does stand for in the formula to calculate moving averages?
The moving averages method of sales forecasting has the formula:
In this formula, stands for
Answer:
Sales
Explanation:
S stands for sales. The moving averages formula uses sales figures from the previous periods to forecasts future sales. For example,
say, sales for 2015 were 100; 2016 were 120; 2017 were 110; and 2018,..130. Using the formula, the forecast for 2019 will be
Forecast 2019 = Sales 2015 + Sales 2016+ Sales 2017+ sales 2019 / 4
Forecast 2019 = 100 + 120 +110 + 130 / 4
Forecast 2019=115
Answer:
"sales for the latest month"
Explanation:
I got it right :)
what can be a use case of predictive analytics? anticipate marketplace changes forecast conversion rates predict infrastructure failure all of the above
Some concepts that can be a use-case of predictive analytics are:
anticipate marketplace changesforecast conversion ratesWhat is a predictive analytics?The term "predictive analytics" is an advanced branch pf analytics that makes predictions about future outcomes using historical data combined with statistical modeling, data mining techniques and machine learning. Most firm uses a predictive analytics to find patterns in this data to identify risks and oppurtunities.
This analytics are often associated with big data and data science and today, most companies are swimming in data that resides across transactional databases, equipment log files, images, video, sensors or other data sources. In other to gain insights from this analytics data, the data scientists use deep learning and machine learning algorithms to find patterns and make predictions about future events which include linear and nonlinear regression, neural networks, support vector machines, decision trees etc.
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a technology company decides to redesign key aspects of its products to better leverage the same components and reduce manufacturing overheads. these savings will then facilitate price reductions. what strategy is the company pursuing?
A technology company redesigns key aspects of its products to better leverage the same components and reduce its manufacturing overheads. The strategy which the company is pursuing is low-cost.
The low cost strategy is considered as a type of pricing strategy in which the technology company offers the products at low price, by deciding to redesign key aspects of its products to better leverage the same components and the reduce the product's manufacturing overheads.
So, this low-cost strategy helps in order to stimulate the demand and gain higher market share. Thus, the firm can then gain cost advantages thus by increasing their efficiency.
Hence, low-cost strategy is the company pursuing.
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Annoying isn't it. When people purposely answer your question when they know it's completely useless. Kinda like how I specifically told people NOT to answer the questions I asked because I was doing an experiment, and every time I did that, two people purposely answered my question when they were told not to.
People are d. i. c. k. s.
Answer:
wow
Explanation:
I'm gonna type a random answer
Marriott has $1.489 (million) worth of inventory and their COGS are $10.720 (mittionTheir average holding cost per unit per year is $13.3. What is the average inventory cost per unit for Marriott? Instruction: Round your answer to the nearest 50.01 The average inventory cost per unit ..........
The average inventory cost per unit for Marriott is approximately $7,150, calculated by dividing the inventory value by the cost of goods sold.
How to calculate average inventory cost per unit for Marriott?To calculate the average inventory cost per unit for Marriott, we divide the total inventory value by the number of units in inventory.
Given information:
Inventory value: $1.489 million
Cost of Goods Sold (COGS): $10.720 million
We can calculate the average inventory cost per unit using the formula:
Average Inventory Cost per Unit = Inventory Value / COGS
Average Inventory Cost per Unit = $1.489 million / $10.720 million
Average Inventory Cost per Unit ≈ 0.1388
Rounding the answer to the nearest 50.01, we get:
Average Inventory Cost per Unit ≈ $7,150
Therefore, the average inventory cost per unit for Marriott is approximately $7,150.
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Although Zappos has around 900,000 unique products in its warehouse, company executives think there is room for more. Zappos is utilizing ______ for this promotion.
Answer: email marketing
Explanation:
Email marketing is the act of promoting a business, a product or anything worth promoting or an exchange of mail. This emails are sent to existing and prospective customers either telling them of this new product or promoting existing goods and services. Zappos utilizes email marketing for this promotion.
why is it important to know the different phases of economic development
yes it is important
Explanation:
It is very important to know changes in different phases of economic development because several things are changed when you are comparing now with past. This is important to know help us compare how we are now and with present.Wheather we are developed or not it helps to know all the aspects.
Economic development is increase in the income and standard of living of people.
it is important to know the different phases of economic development in order "to determine how best to move to the next phase of development".
Stages of economic development according to Rostow:
Traditional stage: This is the first stage characterised by the non - existence of science and technology in an economy.Precondition to take off: This stage comprises mainly basic changes in the social, political and economic fields.Take off stage: This is a period in which you investment rate increases which increases the real output per capita.Drive to maturity: In the stage, total capital per head increases as the economy grow.Age of high mass consumption: The per capita real income increases at this stage. A higher percentage of the population can afford consumption beyond the basic food, shelter and clothing.Therefore, it is important to know the different phases of economic development in order "to determine how best to move to the next phase of development".
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What type of marketing is generally characterized by limited communications and little or no ongoing relationship between the buyer and seller?.
A type of marketing that is generally characterized by limited communications and little or no ongoing relationship between the buyer and seller is transactional marketing.
What is transactional marketing?
Transactional marketing is one business strategy that focuses on single "point of sale" transactions. This strategy emphasizes is on maximizing the volume and efficiency of individual sales rather than developing a relationship with the buyer. The advantage of this strategy is the cost-effective strategy to build a sales model. It's because the strategy doesn't focus on brand image and the promotional costs are low. The example of transactional marketing is a shopping channel on TV advertising a new product and provides a phone number or website to buy the product in that moment.
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1) A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of
A) the PCAOB.
B) a reasonable user of the financial statements.
C) an accountant.
D) the SEC.
A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision ofA) a reasonable user of the financial statements.
A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of a reasonable user of the financial statements. Materiality is a concept in auditing and accounting that refers to the significance of an item or amount in relation to the financial statements as a whole. Materiality is judged by the impact that a particular item or misstatement is likely to have on the decisions of the financial statement users. The determination of whether an item is material is subjective and depends on the professional judgment of the auditor or accountant.
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influences of Business environment,
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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Can some please explain what a core feature is for business class
Answer:
The main things
Explanation:
You are considering the purchase of an apartment complex. The following assumptions are made:
The purchase price is $1,000,000.
Potential gross income (PGI) for the first year of operations is projected to be $171,000.
PGI is expected to increase 4 percent per year.
No vacancies are expected.
Operating expenses are estimated at 35 percent of effective gross income. Ignore capital expenditures.
The market value of the investment is expected to increase 4 percent per year.
Selling expenses will be 4 percent.
The holding period is 4 years.
The appropriate unlevered rate of return to discount projected NOIs and the projected NSP is 12 percent.
The required levered rate of return is 14 percent.
70 percent of the acquisition price can be borrowed with a 30-year, monthly payment mortgage.
The annual interest rate on the mortgage will be 8. 0 percent.
Financing costs will equal 2 percent of the loan amount.
There are no prepayment penalties.
Required:
a. Calculate net operating income (NOI) for each of the four years.
b. Calculate the net sale proceeds from the sale of the property.
c. Calculate the net present value of this investment, assuming no mortgage debt. Should you purchase? Why?
d. Calculate the internal rate of return of this investment, assuming no debt. Should you purchase? Why?
e. Calculate the monthly mortgage payment. What is the total per year?
Using trial and error or a financial calculator, we can find that the IRR is approximately 15.15%. Since the IRR is greater than the required
a. Calculation of Net Operating Income (NOI):
Year 1:
PGI = $171,000
Vacancy = $0
Effective Gross Income (EGI) = PGI - Vacancy = $171,000
Operating Expenses = 35% of EGI = $59,850
NOI = EGI - Operating Expenses = $111,150
Year 2:
PGI = $171,000 x 1.04 = $177,840
Vacancy = $0
EGI = PGI - Vacancy = $177,840
Operating Expenses = 35% of EGI = $62,244
NOI = EGI - Operating Expenses = $115,596
Year 3:
PGI = $177,840 x 1.04 = $185,433.6
Vacancy = $0
EGI = PGI - Vacancy = $185,433.6
Operating Expenses = 35% of EGI = $64,849.76
NOI = EGI - Operating Expenses = $120,583.84
Year 4:
PGI = $185,433.6 x 1.04 = $193,134.14
Vacancy = $0
EGI = PGI - Vacancy = $193,134.14
Operating Expenses = 35% of EGI = $67,489.95
NOI = EGI - Operating Expenses = $125,644.19
b. Calculation of Net Sale Proceeds:
Market value at the end of Year 4 = $1,000,000 x 1.04^4 = $1,174,240.64
Selling expenses = 4% of market value = $46,969.63
Net Sale Proceeds = Market value - Selling expenses = $1,127,271.01
c. Calculation of Net Present Value (NPV):
Year 1:
NOI = $111,150
PV of NOI = $111,150 / (1 + 12%)^1 = $99,196.43
Year 2:
NOI = $115,596
PV of NOI = $115,596 / (1 + 12%)^2 = $93,505.56
Year 3:
NOI = $120,583.84
PV of NOI = $120,583.84 / (1 + 12%)^3 = $92,932.54
Year 4:
NOI = $125,644.19
PV of NOI = $125,644.19 / (1 + 12%)^4 = $93,319.33
Net Sale Proceeds:
NSP = $1,127,271.01 / (1 + 12%)^4 = $818,372.67
NPV = PV of NOI + NSP - Initial Investment
NPV = $99,196.43 + $93,505.56 + $92,932.54 + $93,319.33 + $818,372.67 - $1,000,000
NPV = $197,327.53
Since the NPV is positive, it indicates that the investment is profitable and should be purchased.
d. Calculation of Internal Rate of Return (IRR):
NPV = PV of Cash Flows - Initial Investment
NPV = PV of NOI + NSP - Initial Investment
$197,327.53 = PVIFA(r%, 4) x Debt - $1,000,000
Using trial and error or a financial calculator, we can find that the IRR is approximately 15.15%.
Since the IRR is greater than the required
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What happens to quantity supplied when price is lowered?
A price increase almost always results in more of that good or service being supplied, whereas a price decrease usually results in less of it being supplied. The quantity supplied increases as the price rises.
Generally speaking, decreased supply results from lower prices. Prices that are higher encourage producers to produce more of the good or commodity, assuming that their costs aren't rising as quickly. A cost squeeze brought on by lower prices restricts supply. The likelihood of suppliers producing more increases with price. On the other hand, the cheaper a product is, the more people tend to buy it.
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Which best describes the facilities involved in the Healthcare cluster?
Some facilities are privately owned, some are funded and run by the government, and some are run by nonprofit organizations.
Some facilities are privately owned businesses that are owned by people who want to make money, and some facilities are nonprofit hospitals.
Most facilities are funded by taxes and run by the government, while a small few are privately owned facilities run by people who want to make money.
Many facilities are nonprofit clinics with the rest of the facilities owned and operated by private individuals to make a profit.
Answer:
Some facilities are privately owned, some are funded and run by the government, and some are run by nonprofit organizations.
Explanation:
The Healthcare cluster has healthcare operators such as doctors, nurses, pharmacists, and paramedics. The cluster is about the provision of health care services to the public. Facilities in the health care cluster include hospitals, clinics, health centers, chemists, pharmacies, nursing homes, medical laboratories, and many others.
The facilities in this cluster are owned and operated by different groups. The government funds and manages public health care facilities. Non-profit making organizations such as churches and other donors also own facilities that offer health care services. Private entrepreneurs are also in the health service business.
Answer:
A
Explanation:
What is the cost gained by producing one additional unit of a good or service?
A. Market-Oriented System
B. Marginal Revenue
C. Market Structure
D. Marginal Cost
Answer:
B Marginal Revenue
Revenue is money earned from the production of goods and services.
What type of accounting is more rules-based?
GAAP
Explanation:
That would be the Generally Accepted Accounting Principles (GAAP) system which is rules based.
Alternatively:
The International Financial Reporting Standards. (IFRS) on the otherhand would be the one thats principles based.
Bachiko congratulated her staff when the team received an industry award for their project, and also sent a companywide e-mail announcing it. Here, Bachiko is using her ________ power. Multiple Choice reward expert referent coercive
In the case of Bachiko congratulating her staff as one of her role as manager, then, she is using her reward power.
Reward power refers to a power possessed by a manager to give some type of reward to his/her surbodinates/employees as a means of influencing and motivating them.
Now, Bachiko is congratulating her staff through the company-wide e-mail, the power possessed by him to do so is known as Reward power.Therefore, the Option A is correct.
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Which marketing tactic runs counter to the practice of market segmentation?
undifferentiated marketing
targeted marketing
marketing campaign
demographic marketing
targeted marketing
I hope this helps you
:)
A stock will have a loss of 14.2 percent in a recession, a return of 12.9 percent in a normal economy, and a return of 27.6 percent in a boom. There is 27 percent probability of a recession, 30 percent probability of normal economy, and 43 percent probability of boom. What is the standard deviation of the stock's returns? Multiple Choice O 17.04% 12.78% 15.62% 14.60% 29.02%
The closest option to the calculated standard deviation is 11.493%, which is approximately 11.49%. Therefore, the correct answer from the given multiple choices is 12.78%.
To calculate the standard deviation of the stock's returns, we need to use the weighted average of the squared deviations from the expected return.
Let's calculate it step by step:
expected
Calculate the return:
Expected Return = (Probability of Recession * Return in Recession) + (Probability of Normal Economy * Return in Normal Economy) + (Probability of Boom * Return in Boom)
Expected Return = (0.27 * -0.142) + (0.30 * 0.129) + (0.43 * 0.276)
Expected Return = -0.03834 + 0.0387 + 0.11868
Expected Return = 0.11804 or 11.804%
Calculate the squared deviations from the expected return for each scenario:
Squared Deviation in Recession = (Return in Recession - Expected Return)^2 = (-0.142 - 0.11804)^2 = 0.0032156
Squared Deviation in Normal Economy = (Return in Normal Economy - Expected Return)^2 = (0.129 - 0.11804)^2 = 0.0011933616
Squared Deviation in Boom = (Return in Boom - Expected Return)^2 = (0.276 - 0.11804)^2 = 0.0278623616
Calculate the weighted average of the squared deviations:
Variance = (Probability of Recession * Squared Deviation in Recession) + (Probability of Normal Economy * Squared Deviation in Normal Economy) + (Probability of Boom * Squared Deviation in Boom)
Variance = (0.27 * 0.0032156) + (0.30 * 0.0011933616) + (0.43 * 0.0278623616)
Variance = 0.000868692 + 0.00035700848 + 0.01198535368
Variance = 0.01321005416
Calculate the standard deviation by taking the square root of the variance:
Standard Deviation = √Variance
Standard Deviation = √0.01321005416
Standard Deviation ≈ 0.11493 or 11.493%
The closest option to the calculated standard deviation is 11.493%, which is approximately 11.49%. Therefore, the correct answer from the given multiple choices is 12.78%.
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Help please! Answers 1-6.
KkAnswer:will do
Explanation:
hi.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,,.,.,.,.,.,;]
Answer:
Hellllllllllllllllllllllllllllllllllllo
Explanation:
Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions. How to Conquer the First Impression What does this article say about being on time?
Punctuality is the key to develop a good first impression.
Whether attending a meeting or an interview if the person is on time this makes a good impression indicating that a person is punctual and strict to time. Such a person will value time and consider the priority tasks to be done on time that can be consider good for the organization.Therefore, time management can develop a positive first impression.Learn more about time:
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What is the inflation rate between 2013 and 2014 assuming 2011 is the base year 8 lbs of broccoli 5 lbs of peas?
Assuming 2011 is the base year, the inflation rate for 2013-2014 is 8 pounds of broccoli, 5 pounds of peas, 4 pounds of carrots, and nothing else.
High inflation is generally seen as harmful, but some economists believe low inflation will boost economic growth. The opposite of inflation is deflation, where prices tend to fall. The Federal Reserve is targeting 2% inflation based on the Consumer Price Index (CPI).
A general price increase over time reduces the purchasing power of consumers as they can reduce their consumption for a given amount. The consumer loses purchasing power regardless of whether inflation is his 2% or 4%. They just lose it twice as fast at a higher rate.
Annual inflation in May was 8.6%, the highest since 1981 as measured by the Consumer Price Index, according to the latest Bureau of Labor Statistics report.
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