The quantity demanded of a good is the amount of that good that buyers are willing and able to buy at a given price.Many factors influence demand, but only pricing can decide the quantity of a certain good wanted.
What is the quantity of a product that consumers are willing and able to buy at a given price? The quantity required is the quantity of a good that buyers are willing and able to buy at a given price.Many factors influence demand, but only price determines the quantity demanded for a specific commodity.Economists define demand as the amount of a good or service that consumers are willing and able to acquire at each price.Needs and wants drive demand—a customer may be able to distinguish between a need and a want, but from the standpoint of an economist, they are the same thing.Demand specifies how much of a product consumers are willing and able to buy at each feasible price over a certain time period, all else being equal.To learn more about quantity demanded refer
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which examples illustrate how organizations are reacting to the environmental concerns that are both environmentally positive and profitable? (choose every correct answer.)
Examples - Coca-Cola has committed to reducing its carbon footprint by 25%, and Go-ogle is working on developing renewable energy sources. Partnerships between industries that allow waste products from one to be utilized.
How do business environmental performance and profitability relate to one another?Increased profitability will be linked to high environmental performance levels.
What does it entail for a company to operate morally, and how can one determine whether this is the case?The different rules and values that make up organizational ethics determine how people should conduct themselves at work. It also refers to the behavior standards for employees of a specific organization. Every organization exists to make a profit, but how that money is made is more crucial.
To determine the courses of action that will maximize earnings while satisfying the requirement for corporate social responsibility, they conduct cost-benefit analyses.
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In
, people invest money in a company in exchange for the company’s
.
Answer:
In equity crowdfunding, people invest money in a company in exchange for the company’s shares
Explanation:
Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.
Startups and early-stage companies use this method to raise capital.
Why is fashion designer Kira's Plasinina father important
a. He is a businessman who helped her achieve her goals .
b. He liked her drawings .
c. He funded her ventures.
d. He was her inspiration
if a $1,000 bond pays 4.6 percent interest each year, how much would each semiannual interest payment be?
Each semi-annual interest payment on a $1,000 bond paying 4.6% interest would be $23.
What is semi-annual interest payment?The interest payments on bonds or other fixed-income securities that are made twice a year are referred to as semi-annual interest payments. By purchasing a bond, you basically lend money to the issuer—usually a business or governmental organization—in return for regular interest payments and the repayment of the principal amount when the bond matures.
A bond's interest rate is normally represented as an annual percentage rate (APR) or yield, however interest is typically paid twice a year. You would receive two 2% semi-annual interest payments, for instance, if the bond had a 4% annual interest rate.
According to question:
The annual interest rate is 4.6%, which means that for every $1,000 of the bond's face value, you will receive $46 in interest per year.
To calculate the semi-annual interest payment, you need to divide the annual interest by 2 since there are two semi-annual periods in a year.
So, the semi-annual interest payment would be:
$46 ÷ 2 = $23
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If an increase in the price of good e leads to a large decrease in the demand for good f, what is the relationship between the two goods?.
The relationship between the two goods is: The goods are complementary.
What are complementary goods?Complementary goods can be defined as those goods which consumer buy together and as well use together.
The goods are tend to be complementary based on the fact that the cross-price elasticity of demand of those goods are tend to be negative and large.
Therefore the relationship between the two goods is: The goods are complementary.
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A bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the _____. a) A semi-discharge b) A semi-automatic dismissal c) An automatic stay d) A stop order e) There is no such moratorium in a Chapter 7 proceeding
An automatic stay. When a debtor files for bankruptcy, an automatic stay goes into effect. An automatic stay is a legal order that prevents creditors from attempting to collect any debts owed by the debtor. This means that creditors, including banks, cannot continue any collection activities, including repossession, while the automatic stay is in place.
The purpose of the automatic stay is to give the debtor some relief from creditors' collection efforts, allowing them to focus on their bankruptcy proceedings. This gives the debtor an opportunity to reorganize their finances, restructure their debts, and work on a plan to repay their creditors. In the case of a vehicle repossession, if the debtor files for bankruptcy before the vehicle is repossessed, the automatic stay will prevent the bank from continuing with the repossession. If the bank has already repossessed the vehicle before the debtor files for bankruptcy, they may be required to return the vehicle to the debtor if the automatic stay is in effect. It is important to note that the automatic stay is not permanent, and it will only last for a limited time. In a Chapter 7 bankruptcy case, the automatic stay will typically last for the duration of the bankruptcy case. In a Chapter 13 bankruptcy case, the automatic stay will last for the duration of the repayment plan. In conclusion, a bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the automatic stay. This legal order prevents creditors from attempting to collect any debts owed by the debtor while the bankruptcy proceedings are ongoing.
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The correct answer is c. An automatic stay.
When a debtor files for bankruptcy, an automatic stay is immediately put into place. This stay serves as a temporary injunction, stopping creditors from continuing their collection efforts, which includes repossessing a vehicle.
The automatic stay aims to provide the debtor with some relief and protection, allowing them time to work on their bankruptcy case and reorganize their financial situation.
In this case, the bank cannot continue to try to repossess the vehicle because the automatic stay prevents them from doing so. It is important to note that the automatic stay is not permanent.
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what does the theory of comparative advantage help to explain?
In international trade, comparative advantage refers to the products that a country can produce more cheaply or easily than other countries. Even if a country has an absolute advantage in manufacturing goods, trade can benefit both trading partners, according to the principle of comparative advantage.
A benefit of comparative advantage is the ability to produce a good or service at a lower opportunity cost. Businesses with a comparative advantage can sell goods and services at cheaper prices than competitors, resulting in bigger sales margins and more profitability. A person has a competitive advantage if he can make something at a lower cost than everyone else.
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Which of the following projects is most likely be used in STEM education to learn technology concepts?
test different sandbag materials that can help prevent flooding
investigate search engine criteria to improve search results
O analyze cleaning products to determine which ones are eco-friendly
conduct a scavenger hunt to see who can find the most geometric shapes
Answer:
investigate search engine criteria to improve search resultsExplanation:
Remember, the application of STEM implies using the knowledge found in the field of science, technology, engineering, and mathematics to carry out projects.
Since the focus is on learning technology concepts, the most likely, that is, the project that is closest to technology is investigating search engine criteria to improve search results.
The answer is:
A) investigate search engine criteria to improve search resultsArnoury, a car service station, takes feedback from clients after servicing their cars, which gives the clients a sense of importance. Arnoury's management also ensures rectification and improvement of its services based on clients' feedback. Which of the following marketing strategies does this scenario best illustrate?
Customer relationship management
The scenario best illustrates A) customer relationship management (CRM) marketing strategy.
By taking feedback from clients and ensuring rectification and improvement of its services based on their feedback, Arnoury is engaging in CRM. This strategy aims to build strong and long-lasting relationships with customers by providing them with a personalized experience that meets their needs and expectations. By making clients feel important and valued, Arnoury is likely to gain customer loyalty and repeat business, which is a key goal of CRM.
Overall, CRM helps businesses to understand and anticipate the needs of their customers, leading to improved customer satisfaction and retention.
Option A is answer.
"
Complete question
Arnoury, a car service station, takes feedback from clients after servicing their cars, which gives the clients a sense of importance. Arnoury's management also ensures rectification and improvement of its services based on clients' feedback. Which of the following marketing strategies does this scenario best illustrate?
Customer relationship management
Customer service management
"
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What is demand comprised of
Curry Footwear reports net income of $500,000, earnings per share of $1. 50, and has a stock price of $45. 00 at the end of the year. What is Curry Footwear's price-earnings ratio
Curry Footwear reports net income of $500,000, earnings per share of $1. 50, and has a stock price of $45. 00 at the end of the year. So, Curry Footwear's price-earnings ratio is 30.
To calculate Curry Footwear's price-earnings ratio: Follow these steps:
1. Identify the net income, which is $500,000.
2. Identify the earnings per share (EPS), which is $1.50.
3. Identify the stock price at the end of the year, which is $45.00.
The price-earnings ratio is calculated by dividing the stock price by the earnings per share:
Price-Earnings Ratio = Stock Price / Earnings Per Share
In this case, the calculation would be:
Price-Earnings Ratio = $45.00 / $1.50
Now, just divide the numbers:
Price-Earnings Ratio = 30
So, Curry Footwear's price-earnings ratio is 30.
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If I were journalizing a prepaid expense, prepaid rent to be specific, what journal would I journalize the transaction in?
I know I have to debit prepaid rent and credit cash in bank, I just don't know which journals to use.
The journal entry for prepaid rent would be a debit to Prepaid Rent and a credit to Cash or Bank Account.
If you are journalizing a prepaid expense for prepaid rent, the journal entry would be
Debit - Prepaid Rent
Credit - Cash or Bank Account
The debit to Prepaid Rent account will increase the balance of the prepaid rent asset account, which represents the portion of rent that has been paid in advance but has not yet been used or consumed. The credit to Cash or Bank Account will decrease the balance of the cash or bank account, reflecting the payment made for the prepaid rent.
The journal entry records the payment of rent in advance as a prepaid expense, which will be recognized as an expense over the period for which the rent has been paid. As time passes, a portion of the prepaid rent will be recognized as an expense in the income statement, and the balance in the prepaid rent account will be reduced accordingly.
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The expected return on the market is 15.34 percent, the inflation rate is 2.99 percent, and the risk-free return is 3.19 percent. Refresher stock is currently priced at $59.83 per share and is expected to pay its next annual dividend in 1 year. Refresher's next dividend is expected to be $2.73 per share and the stock is expected to be priced at $64.89 in 1 year. What is Refresher's beta?
The beta of Refresher stock using CAPM is 1.48.
How to find beta?To calculate the beta of Refresher stock, we can use the Capital Asset Pricing Model (CAPM) formula, which is:
r = Rf + β*(Rm - Rf)
Where:
r = Expected return on the stock
Rf = Risk-free rate of return
β = Beta of the stock
Rm = Expected return on the market
We are given that Rf = 3.19%, Rm = 15.34%, and the inflation rate is 2.99%. To adjust for inflation, we can use the real risk-free rate, which is:
Rf - Inflation rate = Real risk-free rate
3.19% - 2.99% = 0.20%
So, the equation becomes:
r = 0.20% + β*(15.34% - 0.20%)
We are also given that Refresher stock is expected to pay a dividend of $2.73 per share in 1 year and is expected to be priced at $64.89 in 1 year. Using these values, we can calculate the expected dividend yield and expected capital gains yield:
Expected dividend yield = Dividend / Stock price = $2.73 / $59.83 = 4.57%
Expected capital gains yield = (Expected future stock price - Current stock price) / Current stock price = ($64.89 - $59.83) / $59.83 = 8.44%
So, the total expected return on Refresher stock is:
r = 4.57% + 8.44% = 13.01%
Solving for β, we get:
β = (r - Rf) / (Rm - Rf) = (13.01% - 0.20%) / (15.34% - 0.20%) = 1.48
Therefore, the beta of Refresher stock is 1.48.
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Jamie is a purchasing agent for a company that manufactures shoes. She
has just submitted a purchase order to a supplier for more leather. Which
step of the purchasing process comes next?
A. Quality check
B. Requisition
C. Bid soliciting
O D. Shipping
Answer:
D. Shipping
Explanation:
Shipping refers to the activity of physically moving goods from one location to another. The goods could be moving from one store to another, from manufacturers to distributors, or from retailers to customers. Shipping is 'carrying goods' and hence a component of logistics.
After Jamie has prepared a submitted a purchase order, the next thing is to wait to receive the goods she ordered. Her supplier should ship the goods to her. The supplier can deliver the goods by themselves or use a logistics company.
what are the function of Ware house?
Answer:
see below
Explanation:
Warehouses provide safe storage of goods in large quantities before they can be moved to other locations. Goods are stores in an orderly and systematic manner. Warehouses protect goods against adverse weather and reduce losses due to spoilage.
The major functions of a warehouse are
Storage of goodsSafe storage of goods is the primary function of a warehouse. Manufacturers use warehouse facilities to store finished goods before they can be distributed for consumption. Warehouses are also used by traders to keep goods as they wait for customers to buy.
Protecting goodsGoods in the warehouse are protected from harsh weather conditions such as heat, dust, moisture, and strong winds. Losses and damages to goods are minimal in a warehouse.
Grading and brandingSome warehouses perform value-added services such as branding and grading of products. They are done as per the manufacturers' specifications
ProcessingWarehouse perform processes like breaking bulk where goods are brought in large quantities and are repackaged and sold in smaller quantities.
Cost-push inflation corresponds to ________ output and demand-pull inflation corresponds to ________ output.
It should be noted that Cost-push inflation corresponds to lower output and demand-pull inflation corresponds to higher output.
What Is Cost-Push Inflation?Cost-push inflation serves as inflation that do take place when overall prices increase as a result of increases in the cost of wages and raw materials
Demand-pull inflation on the other hand describes the effects of an imbalance in aggregate supply and demand.
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how do you find tax liability?
Answer:
Find answer in the explanation below
Explanation:
Tax liability can be defined as the total amount of taxes an individual, corporation, company, etc owes a tax authority or service at a given period of time.
The Internal Revenue Service is responsible for the taxation and collection of taxes from individuals to multinationals.
tax liability can also simply be said to be the amount in taxes that is owed the government individuals downs to multinationals.
Tax liability can be found or derived from taxable incomes. This is started by deducting taxable income - tax deductions = gross tax liability
gross tax liabilty - tax credits = tax liability.
Cheers.
Suppose that the economy is depicted in the graph to the right a. The current equilibrium price level and output level respectively are:and s trllion. (Enter your response as a whole number.) b. Using the line drawing tool, show a change in aggregate demand that leads to an inflationary gap. Use the line drawing tool and label this new line 'AD1 Carefully follow the instructions above, and only draw the required objects. 160 SRAS 150- 140 130- LRAS 120- 100.w. 9어 - 80- 70- 60- 50- AD 40+-ㄒㄧㄒㄧ--T 0 2 4 6 8 10 12 14 16 18 20 Real GDP (S trillions)
If the economy is depicted in the graph to the right then,
a. The present equilibrium price level and output level are not provided in the information provided.
b. To demonstrate a change in aggregate demand that results in an inflationary gap, draw a new line labeled 'AD1' that is shifted to the right of the original 'AD' line and intersects the 'SRAS' line at a higher output level than the original equilibrium output level. This change in aggregate demand suggests a rise in expenditure and prices, resulting in an inflationary gap. The new equilibrium output level will be higher than the initial output level, but prices will skyrocket.
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mary co. sold a machine that cost $79,000 and had a book value of $44,900 for $45,900. data from mary's comparative balance sheets are:12/31/21. 12/31/20Machinery. $790,500. $652,000Accumulated depreciation. 188,500. 135,900Complete the cash flow statement below. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or inparenthesis e.g. (15,000).)Mary Co.Partial Statement of Cash Flows (Indirect Method)Cash flows from operating activitiesCash flows from investing activities
Cash flows from investing activities
Sale of machine 45,900
Purchase of machinery (138,500)
Net cash used in investing activities (92,600)
Mary Co.
Partial Statement of Cash Flows (Indirect Method)
Cash flows from operating activities
Net income (loss) -
Add (deduct) items not affecting cash flow:
Depreciation and amortization 52,600
Decrease in accumulated depreciation (52,600)
Gain on sale of machine (31,200)
Increase in accounts receivable (27,600)
Increase in inventory (16,700)
Increase in accounts payable 11,500
Net cash provided by operating activities (42,100)
Cash flows from investing activities
Sale of machine 45,900
Purchase of machinery (138,500)
Net cash used in investing activities (92,600)about
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Suppose General Electric payed its line workers $12 per hour
The relevant answers with regard to real wages are as follows:
A) $10.08
B) 10.89
C) 19.05. See explanation below.
What is the computation justifying the above results?[A]
Recall that Real Wages are computed as follows;
Real Wages = (Nominal Wage/CPI in the Given Year) x CPI in the base year
12 = (N/84) x 100
= 10.08
[B]
The formula for real wage still stands:
Hence,
12 x 1.08 = (N/84) x 100
= 10.89
One thing to keep in mind is that the percentage rise in real wages is always equal to the percentage increase in nominal wages. The same may be demonstrated with other values.
[C]
It is to be noted that the real wage is pegged at $12 which is same from the prior year.
Hence, percentage increase = 0
But because $12 is Nominal in the incumbent year,
[(12 - 10.08)/10.08] x 100
= 92/10.08
= 19.05
What is real wages?Real wages are earnings adjusted for inflation, or pay expressed in terms of the quantity of goods and services that may be purchased. In contrast to nominal wages or unadjusted wages, this word is used.
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Full Question:
Suppose General Electric paid its line workers $12 per hour in 2015 when the Consumer Price Index was 100. Suppose that deflation occurred and the aggregate price level fell to 84 in 2016. Instructions: Round your answers to two decimal places. a. GE needed to pay its workers $ in 2016 in order to keep the real wage fixed at $12. b. GE needed to pay its workers $ in 2016 if it wanted to increase the real wage by 8 percent. c. If GE kept the wage fixed at $12 per hour in 2016, in real terms, its workers got a % increase in wages.
2. Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?
Answer:
Davidson describes two philosophies that are represented each by the Republican Party and by the Democratic Party.
Republicans believe, according to Davidson, that the economy works best when the state keeps its hands off it. Republicans view a free market economy without government intervention as essentially a perfect machine that can coordinate the interests of vastly different goups of people (this is the concept of the invisible hand, developed by Adam Smith).
The Democrats, on the other hand, while seeing Capitalism as the most efficient economic system, believe that the capitalist economy needs to be regulated by the state, because otherwise, a free market generates undesirable effects like externalities and economic inequality.
According to Davidson, the republicans and the democrats as philosophies are two fundamentally different economic philosophies that impact the debt crisis facing the US. I agree more with the republican side of things, life can't always come with an aim of everything being "equal" and "fair".
is 6 ft greater than 72 inches
The available positions are essential and require limited interaction with the public. There is no remote or telework available for this position. Do you have any concerns?
Based on the information provided, it appears that the available positions are necessary for the functioning of the organization and do not require a lot of interaction with the public. Additionally, it seems that remote or telework options are not available for these positions.
In terms of concerns, it would depend on the individual's personal circumstances and preferences. For example, if the individual has health concerns or responsibilities that make in-person work difficult, they may have concerns about the lack of remote work options. On the other hand, if the individual prefers in-person work or values the stability of a traditional office job, they may not have any concerns.
Overall, it is important for individuals to assess their own needs and preferences when considering job opportunities. If the available positions align with their interests and priorities, then they may be a good fit. However, if there are significant concerns about the nature of the work or the lack of remote options, then it may be best to explore other opportunities that better suit their needs.
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Calculate the FV for the following 3 scenarios. Investment scenario #1:
You invest $1,000 (PV) for 10 years (n) at an interest rate of 5% (r). What is the amount you would receive at
the end of 10 years (FV)?
Investment scenario #2:
You invest $5,000 (PV) for 20 years (n) at an interest rate of 8% (r). What is the amount you would receive at
the end of 20 years (FV)?
Investment scenario #3:
You invest $10,000 (PV) for 30 years (n) at an interest rate of 12% (r). What is the amount you would receive
at the end of 30 years (FV)?
PLEASE ANSWER WITH WORK SHOWN :)
Answer:
?
Explanation:
Answer:
$2191.12
Explanation:
We are asked to find the value of a bond after 10 years, if you invest $1000 in a savings bond that pays 4% interest, compounded semi-annually.
FV=C_0\times (1+r)^n, where,
C_0=\text{Initial amount},
r = Rate of return in decimal form.
n = Number of periods.
Since interest is compounded semi-annually, so 'n' will be 2 times 10 that is 20.
4\%=\frac{4}{100}=0.04
FV=\$1,000\times (1+0.04)^{20}
FV=\$1,000\times (1.04)^{20}
FV=\$1,000\times 2.1911231430334194
FV=\$2191.1231430334194
FV\approx \$2191.12
Therefore, the bond would be $2191.12 worth in 10 years.
Your parents are planning to retire in 14 years. They currently have $199,681 in their retirement account. Your parents feel that they need $2,484,872 before they can retire. What annual yield do they need to earn in order for them to reach their goal in 14 years (please respond without the "%" sign, but with two significant decimal points for instance instead of 12.77%, simply enter 12.77)?
Your parents need to earn an annual yield of approximately 11. to calculate the annual yield your parents need to earn in order.
to reach their retirement goal, we can use the formula for future value (fv) of an investment:
fv = pv * (1 + r)ⁿ
where:
fv = future value (desired retirement amount)
pv = present value (current retirement account balance)
r = annual yield (interest rate, expressed as a decimal)
n = number of years
plugging in the values, we have:
fv = $2,484,872
pv = $199,681
n = 14 years
we need to solve for r.
using the formula and rearranging it to solve for r:
r = (fv / pv)⁽¹ⁿ⁾ - 1
plugging in the values, we have:
r = ($2,484,872 / $199,681)⁽¹¹⁴⁾ - 1
r = 12.470073 - 1
r = 11.470073 47% (to two significant decimal points) in order to reach their retirement goal in 14 years.
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How do I find the first four terms?
Answer: 300, 350, 400, 450
Explanation:
a1 = first term = 300
d = common difference = 50
2nd term = a+d
= 300 + 50
= 350
3rd term = a + 2d
= 300 + 2(50)
= 300 + 100
= 400
4th term = a + 3d
= 300 + 3(50)
= 300 + 150
= 450
Therefore, the first four terms are 300, 350, 400, and 450.
which european union institution ensures the day-to-day functioning of the eu?
The European Commission is the institution responsible for ensuring the day-to-day functioning of the European Union.
This institution is responsible for proposing new laws, managing the EU's budget, and implementing policies and decisions made by the other EU institutions.
It is made up of a team of commissioners, with one commissioner appointed from each member state, and is headed by a president who is elected by the European Parliament.
The European Commission plays a critical role in ensuring that the EU operates smoothly and efficiently, and it works closely with the other EU institutions, including the European Parliament and the Council of the European Union, to achieve its objectives.
Overall, the European Commission is a key pillar of the European Union's governance structure, and it plays an essential role in promoting cooperation and unity among the member states.
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in an economy with constant velocity, a real gross domestic product growth rate of 2 percent, an ex ante real interest rate of 3 percent, and a money supply that is expected to grow at 7 percent, the nominal interest rate would be percent.
The nominal interest rate would be 12%. Nominal interest rate is the percentage rate of interest that is quoted on a loan or deposit, without adjusting for inflation.
Nominal interest rate is the interest rate as it is stated, without any adjustment for the effect of inflation on the purchasing power of the money that will be received. It is the rate of interest that borrowers pay on loans and the rate of interest that depositors receive on savings and other deposit accounts.
To determine the nominal interest rate you can use this formula:
Nominal interest rate = Real GDP growth rate + Ex ante real interest rate + Expected growth rate of money supply
In this case:
Nominal interest rate = 2 percent + 3 percent + 7 percent
Nominal interest rate = 12%
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You live in a rural area and don't have a nearby wired network to connect to. What could you use to connect to the Internet?
Answer;
Satellite
explanation;
Suppose you wish to retire 33 years from today. You determined that you would need $250,000 per year after you retire, with the first retirement funds withdrawn one year from the day you retire and that you will need to make 25 such withdrawals. If you can earn 5% per year on your retirement funds. a) How much must you deposit in an account today (lump sum), so that you may have enough funds for retirement? Bonus: Rework (a) assuming you can earn 5% interest until you retire then will earn only 4% thereafter.
The total funds available at the time of retirement would be $5,131,604.18.
The given problem can be solved by applying the future value formula, which is given as:
FV = PV × (1 + r)n Where,FV = Future Value, PV = Present Value (lump sum amount to be deposited), n = number of periods, r = interest rate in decimal form.
1) To calculate the lump sum amount to be deposited today to earn the desired retirement funds, we need to find the future value of the amount required for retirement.
FV = $250,000 × 25
= $6,250,000
n = 25 years
r = 5%
= 0.05
Substituting the values in the above formula we get,
$6,250,000 = PV × (1 + 0.05)25$6,250,000
= PV × 3.38684
Divide both sides by 3.38684 to get the value of
PV. $6,250,000/3.38684
= PV PV
= $1,844,910.33
Therefore, the amount that should be deposited as a lump sum today is $1,844,910.33.
2) Assuming that the interest rate will be 4% after retirement, the calculation is as follows:
n = 25 years,
r1 = 5%
= 0.05r2
= 4%
= 0.04
FV = $250,000 × 25
= $6,250,000
The first step is to find the value of the lump sum amount today. Using the formula, FV = PV × (1 + r)n to calculate the present value of retirement funds, we get,
$6,250,000 = PV × (1 + 0.05)25PV
= $1,844,910.33
Next, we need to calculate the future value of this present value of $1,844,910.33 using 4% interest, which is 0.04.
FV = $1,844,910.33 × (1 + 0.04)25FV
= $5,131,604.18
Therefore, the total funds available at the time of retirement would be $5,131,604.18.
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