Answer:
C. Two people can use the same knowledge to develop and produce a product
Explanation:
Knowledge capital can be regarded as
the value of an organization which is comprised of its knowledge, learned techniques as well as relationships and innovations. Knowledge capital
can as well be regarded as intellectual capital, which is intangible and brings great value to the company which in turn gives competitive edge over rivals.
It should be noted that Knowledge capital is nonrival in the sense Two people can use the same knowledge to develop and produce a product
Can I get help on this job application please ?
Answer:
The answer is below.
Explanation:
Most likely to do:
"Ask your store Manager if you can hold the markdown price for them so they can get it for the same price when it is back in store."
Doing the above will ensure you retain the customer's trust, and while you didn't direct your customer to a competitor, which is detrimental.
Least Likely to do:
"Offer to provide the address and phone number for the nearest store, and explain that stores get frequent shipments with new items."
Doing the above is detrimental to your store, as you will be sending your customers to a direct competitor.
The following chart represents the cost of producing different amounts of pizza pies in an hour. Quantity of Output1020405070 Workers (L) 2.253.004.105.506.75 Wage Rate per hour$35.00$35.00 $35.00$35.00$35.00 Calculate the cost of producing 40 pizza pies. Round your answer to the nearest hundredths place.
Answer:
the cost would be $143.50
Explanation:
The computation of the cost of producing 40 pizza pies is shown below:
Cost = no of workers × wage rate per hour
= 4.10 × $35
= $143.50
We simply multiplied the number of workers with the wage rate per hour so that the cost of generating 40 pizza pies could come
hence, the cost would be $143.50
The same would be considered
Saginaw Steel Corporation has a precredit U.S. tax of $110,000 on $505,000 of taxable income. Saginaw has $205,000 of foreign source taxable income and paid $65,000 of income taxes to the German government on this income. All of the foreign source income is treated as foreign branch income for foreign tax credit purposes. Saginaw's foreign tax credit on its tax return will be: (Do not round intermediate calculations. Round your answer to nearest whole dollar amount.)
Answer: $44654
Explanation:
Based on the information given, the foreign tax credit will be allowed to the amount of the tax that is paid to foreign government which is $65000 which is then subject to the US tax limit that is applicable on that particular income which will be:
= 205000 × 110000/505000
= 44654
Therefore, the tax credit will be the one that's lesser between $65000 and $44654. Therefore the answer will be $44654.
The annual demand for a product is 14,400 units. The weekly demand is 277 units with a standard deviation of 80 units. The cost to place an order is $28.00, and the time from ordering to receipt is eight weeks. The annual inventory carrying cost is $0.10 per unit. a. Find the reorder point necessary to provide a 95 percent service probability. (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places.)
Answer:
2589.56 units
Explanation:
Given that
Annual Demand = 14400 units
Weekly Demand = 277 units
Standard Deviation = 80 units
Ordering cost = $ 28
Lead Time = 8 weeks
Carrying cost = $ 0.10 / unit
Based on the above information
a) For a 95 percent service level, the value of z by referring to the Normal Table in Appendix A) is 1.65
The reorder point is computed as follows:
= Weekly Demand × Lead Time + Z × Standard Deviation × √ Lead Time
=277 × 8 + 1.65 × 80 × √8
= 2216+ 373.56
= 2589.56 units
Tiana has strong communication skills, she is a hard worker, and she has a
strong background in math and statistics. What can she do to strengthen her
chances of securing a job as a market research analyst?
A. She can improve her hard skills by working collaboratively with
other people.
B. She can improve her soft skills by pursing a degree in statistics.
C. She can improve her hard skills by learning software used by
market research analysts.
D. She can improve her soft skills by taking extra courses in
computer science.
(a p e x)
Answer:
did u get the answer?
Explanation:
I'm stuck on it
Suppose that we want to estimate the effects of alcogol consumption (alcohol) on college grade point average (colGPA. In addition to collecting information on GPAs and alcohol consumption, we also obtain attendance information (percentage of lectures attended, attend). A standardized test score, SAT, and high school GPA (hsGPA) are also available.
a. Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret ????alcohol.)
b. Should SAT and hsGPA be included as explanatory variables? Explain.
Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $2.78 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 25%. What will be the WACC for this project
Answer:
The WACC for this project is 22.72%.
Explanation:
P = common stock current selling price per share = $22.35
D1 = Expected dividend next year = $2.78
F = Floating cost = 8%, or 0.08
g = growth rate = 9.2%, or 0.092
t = tax rate = 0.25
r = Ke = cost of equity
The cost of equity can be calculated using the dividend grow model with the consideration of the effect of the issuance or floating cost that reduces cash collected as follows:
P(1 – F) = D1 / (r – g) ….................... (1)
Substituting the relevant value into equation (1) and solve r as follows:
22.35(1 – 0.08) = 2.78 / (r – 0.092)
22.35 * 0.92 = 2.78 / (r – 0.092)
20.562 = 2.78 / (r – 0.092)
20.562 (r – 0.092) = 2.78
20.562r - 1.891704 = 2.78
20.562r = 2.78 + 1.891704
20.562r = 4.671704
r = 4.671704 / 20.562
r = 0.2272, or 22.72%
Since there is no information that shows there is a debt, this implies that WACC is equal to the cost of equity. Therefore, we have:
WACC = r = Ke = 22.72
Exercise 12-1 Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 15,000 $ 1,000 2 $ 8,000 $ 2,000 3 $ 2,500 4 $ 4,000 5 $ 5,000 6 $ 6,000 7 $ 5,000 8 $ 4,000 9 $ 3,000 10 $ 2,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in
Question Completion:
Requirement #2 would the payback period be affected if the cash inflow in the last year were several times as large
Answer:
Unter Corporation
1. Payback period of the investment is:
= 7 years.
2. No. The payback period would not be affected if the cash inflow in the last year were several times as large. The payback period was reached in the 7th year, which is three years before the last year. No cash inflows after the 7th year will have any impact on the payback period.
Explanation:
a) Data and Calculations:
Cash flows:
Year Investment Cash Inflow
1 $ 15,000 $ 1,000
2 $ 8,000 $ 2,000
3 $ 2,500
4 $ 4,000
5 $ 5,000
6 $ 6,000
7 $ 5,000 $25,500
8 $ 4,000
9 $ 3,000
10 $ 2,000
Total $23,000 $34,500
Ill give Brainliest to the one that awnsers
List 3 negative consequences of Chapter 7 and 13 Bankruptcy.
Answer:
As with any legal process, bankruptcy is a complex issue with both positive and negative consequences. Anyone considering filing for bankruptcy should consider all the possible outcomes before taking this step. Whether one is considering a Chapter 7 straight bankruptcy or a Chapter 13 repayment plan case, consulting with a qualified consumer bankruptcy attorney is paramount to ensuring that the process runs smoothly and advantageously.
Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each year). Vacation compensation is paid at an hourly rate of $45, based on an eight-hour work day. Rayon’s first pay period is January. It is now April 30, how much vacation liability has accumulated if the company has four employees and no vacation compensation has been paid?
Answer: $5760
Explanation:
The accumulated vacation liability is calculated below:
Number of employees = 4
Number of months = 4 Months
Vaccation is based on = 8 hours
Per hour rate = $45
Accumulated Vacation liability will now be:
= 4 × 4 × 8 × $45
= $5,760
Therefore, the amount if vacation liability that has accumulated will be $5,760
On January 1, 2020, Indian river groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:
Jan 1, 2020. $600,000
Sept 1, 2020. $1800,000
Dec 31, 2020 $1800,000
March 31,2021. $1800,000
Aug 31, 2021. $1200,000
Indian river groves borrowed $800,000 at 10% interest rate from a bank on Jan 1, 2020 specifically to finance this construction. In addition, it as has two other debt outstanding throughout the entire construction. A) $1500,000, 8%, 10 years bonds payable and B) $3,200,000, 10%, 5 years note payable. Fiscal year-end is Dec 31.
Instruction:
A. What are the weighted-average accumulated expenditures for 2020 and 2021, respectively?
B. How much interest should be capitalized in 2020? Show your calculation.
Journalize the entries to correct the following errors:
a. A purchase of supplies for $108 on account was recorded and posted as a debit to Supplies for $569 and as a credit to Accounts Receivable for $569. (
b. A receipt of $4,410 from Fees Earned was recorded and posted as a debit to Fees Earned for $4,410 and a credit to Cash for $4,410.
Answer:
A. Dr Accounts Receivable for $569
Cr Supplies $569
Dr Supplies $108
Cr Accounts payable $108
B. Dr Cash $8820
Cr Fees earned $8820
Explanation:
Preparation of the entry to correct the following errors:
A. Dr Accounts Receivable for $569
Cr Supplies $569
Dr Supplies $108
Cr Accounts payable $108
B. Dr Cash $8820
Cr Fees earned $8820
($4410+$4410)
What is meant when a company is going through the "refreeze"
Answer:
Refreezing is the process of fixing these new ideas into the minds of the employees and managers so that they form the new set of beliefs, values, and norms of the organization.
Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $13,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $181,000. The desired ending cash balance is $35,000. The excess (deficiency) of cash available over disbursements for July will be:
Answer:
$14,000
Explanation:
Given the above information,
the excess cash available for Disbursement in July is computed as;
= Budgeted cash receipts total - Budgeted cash disbursement total + Budgeted beginning cash balance
= $182,000 - $181,000 + $13,000
= $14,000
Therefore, the excess(deficiency) of cash available over disbursement in July will be $14,000
Hannish Orchards, a juice manufacturer, uses a process that adds all the raw materials at the beginning of the process. Conversion costs are evenly distributed. Assume there are no beginning inventories. During the period the company started making 10,000 gallons. There were 2,000 gallons left in ending WIP that were 40% of the way through the process. Costs incurred during the period were: $ 16,000 Raw materials $ 5,500 Conversion costs The cost assigned to ending work in process would be closest to: A) $3,700 B) $4,300 C) $1,720 D) $1,780
Answer:
a. $3,700
Explanation:
Unit completed = 10000 - 2000 = 8000
Equivalent unit of material = 10000
Equivalent unit of conversion = 8000 + (2000*40%)
Equivalent unit of conversion = 8800
Cost per equivalent unit of material = $16000/10000
Cost per equivalent unit of material = $1.6
Cost per equivalent unit of conversion = $5500/8800
Cost per equivalent unit of conversion = $0.625
Cost of ending WIP = Equivalent unit of material*Unit cost+Equivalent unit of conversion*Unit cost
Cost of ending WIP = 2000*$1.6 + (2000*40%)*$0.625
Cost of ending WIP = $3200 + $500
Cost of ending WIP = $3,700
Direct Materials Variances Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 550 tablets during December. However, due to LCD defects, the company actually used 500 LCD displays during December. Each display has a standard cost of $6.40. LCD displays were purchased for December production at a cost of $2,950.
Determine the price variance, quantity variance, and total direct materials cost variance for December. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to nearest cent, if required.
Price variance $ Unfavorable/favorable
Favorable Quantity variance $ Unfavorable/favorable
Total direct materials cost variance $ Unfavorable/Favorable
Answer:
Standard price = $6.40
Actual price = $5.90 ($2,950/500)
Standard quantity = 550
Actual quantity = 500
Direct materials price variance = (Actual price - Standard price) * Actual quantity
= ($5.90 - $6.40) * 500
= $0.5 * 500
= $250 Favorable
Direct materials quantity variance = (Actual quantity - Standard quantity) * Standard price
= (500 - 550) * $6.40
= 50 * $6.40
= $320 Favorable
Total direct materials cost variance = Direct materials price variance + Direct materials quantity variance
= $250 Favorable + $320 Favorable
= $570 Favorable
[The following information applies to the questions displayed below.] University Car Wash built a deluxe car wash across the street from campus. The new machines cost $258,000 including installation. The company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year Hours Used 1 2,700 2 1,500 3 1,600 4 2,400 5 2,200 6 2,100 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
Answer:
University Car Wash
Depreciation Schedule
Date Cost of Asset Depreciation Accumulated Net book
Expense Depreciation Value
Year 1 $258,000 $38,250 $38,250 $219,750
Year 2 258,000 38,250 76,500 181,500
Year 3 258,000 38,250 114,750 143,250
Year 4 258,000 38,250 153,000 105,000
Year 5 258,000 38,250 191,250 66,750
Year 6 258,000 38,250 229,500 28,500
Explanation:
a) Data and Calculations:
Cost of the new washing machines = $258,000
Estimated residual value = $28,500
Depreciable amount = $229,500 ($258,000 - $28,500)
Straight-line annual depreciation expense = $38,250 ($229,500/6)
Estimated useful life = 6 years
Usage in hours = 12,500 hours
Actual use per year:
Year Hours Used
1 2,700
2 1,500
3 1,600
4 2,400
5 2,200
6 2,100
Total 12,500
frocks and gowns incorporated has two divisions day wear and night wear the day wear division has an investment base of 880,000 and produces and sells 134,500 units of collars at a market price of 12.20 wants to purchase 27,000 units of collars from the day wear division. what is the minimum transfer price that the day wear division would accept for the 27,000 unit order from the night wear
Question
Frocks and gowns incorporated has two divisions day wear and night wear the day wear division has an investment base of $880,000 and produces (and sells) 134,,500 units of Collars at a market price of $12.20 per unit. Variable costs total $7.80 per unit, and fixed charges are $3.90 per unit (based on a capacity of 140,000 units). The Night Wear Division wants to purchase 27,000 units of Collars from The Day Wear Division. However, the Night Wear Division is only willing to pay $8.45 per unit.
What is the contribution margin for the Day Wear Division without the transfer to the Night Wear Division?
Answer:
The minimum transfer value = $305,200
Explanation:
The company current has an excess capacity of 140,000-134,500=5,500 units
These available quantities can sold at a minimum transfer price of $7.80.
However, the balance of 21,500 (i.e 27,000 minus 5,500) should be transferred at the market price of $12.20. This is so because there is an opportunity cost attached to units supplied which is the contribution to be earned if sold at the market price.
Hence, The 27,000 units should transferred at the value computed below:
$
First 5,500= $5,500× $7.80= 42,900
The balance of 21,500 × $12.20= 262,300
The total value 305,200
The minimum transfer value = $305,200
Rommer Company purchases Daley Inc. for $4,700,000 cash on January 1, 2020. The book value of Daley Company's net assets, as reflected on its December 31, 2019 statement of financial position is $4,000,000. An analysis by Rommer on December 31, 2019 indicates that the fair value of Daley's tangible assets exceeded the book value by $525,000, and the fair value of identifiable intangible assets exceeded book value by $150,000. How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Answer:
$25,000
Explanation:
Calculation to determine How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Using this formula
Goodwill=Beginning cash-Ending book value-Fair value tangible assets-Fair value intangible assets
Let plug in the formula
Goodwill=$4,700,000-$4,000,000-$525,000-$150,000
Goodwill=$25,000
Therefore the goodwill that the company should be recognized by Rommer Company when recording the purchase of Daley Inc. $25,000
Q-01: Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2003, Thomas shipped and billed book titles totaling $760,000. Collections, net of return credits, during the year totaled $690,000. The company spent $300,000 acquiring the books that it shipped. a. Using accrual accounting and the preceding values, show the firm’s net profit for the past year. b. Using cash accounting and the preceding values, show the firm’s net cash flow for the past year. c. Which of these statements is more useful to the financial manager? Why?
Answer:
Following are the solution to the given question:
Explanation:
For point a:
Total profit =Sales- solding goods cost
[tex]=760,000-300,000\\\\=TK.460,000[/tex]
For point b:
Total Cash flow =Cash receipts-solding goods cost
[tex]=6,90,000-3,00,000\\\\=3,90,000[/tex]
For point c:
The financial management's cash flow report is much more helpful, its net cash flow contains monies that are not collected also, therefore, do not contribute to the owners' assets as a result.
, determining whether an organization has fulfilled a certain objective is most closely associated with which of the following management functions
Explanation:
Beureacracy functions
In this type of functions there is institutions that governs what each one does and also the laws and orders are followed to maintain a higher productivity
The general ledger of ABC Corporation as of December 31, 2021, includes the following accounts: Copyrights $50,000 Deposits with advertising agency (will be used to promote goodwill) 30,000 Discount on bonds payable 70,000 Excess of cost over fair value of identifiable net assets of acquired 80,000 Trademarks 90,000 Equity Investments 100,000 Patents 20,000 In the preparation of ABC balance sheet as of December 31, 2021, what should be reported as total intangible assets
Answer:
$240,000
Explanation:
Calculation to determine what should be reported as total intangible assets
Using this formula
Total intangible assets=Copyrights+Excess of cost over fair value of identifiable net assets of acquired+Trademarks+Patents
Let Plug in the formula
Total intangible assets=$50,000 + $80,000 + $90,000 +$20,000
Total intangible assets=$240,000
Therefore The Amount that should be reported as total intangible assets is $240,000
Suppose that Fizzo and Pop Hop are the only two firms that sell orange soda. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: Pop Hop Advertise Doesn't Advertise Fizzo Advertise 8, 8 15, 2 Doesn't Advertise 2, 15 11, 11 For example, the upper right cell shows that if Fizzo advertises and Pop Hop doesn't advertise, Fizzo will make a profit of $15 million, and Pop Hop will make a profit of $2 million. Assume this is a simultaneous game and that Fizzo and Pop Hop are both profit-maximizing firms. If Fizzo decides to advertise, it will earn a profit of $ million if Pop Hop advertises and a profit of $ million if Pop Hop does not advertise. If Fizzo decides not to advertise, it will earn a profit of $ million if Pop Hop advertises and a profit of $ million if Pop Hop does not advertise. If Pop Hop advertises, Fizzo makes a higher profit if it chooses . If Pop Hop doesn't advertise, Fizzo makes a higher profit if it chooses . Suppose that both firms start off not advertising. If the firms act independently, what strategies will they end up choosing
Answer: See explanation
Explanation:
A pay off matrix has been attached.
If Fizzo decides to advertise, it will earn a profit of ($8 million) if Pop Hop advertises and a profit of ($15 million) if Pop Hop does not advertise.
If Fizzo decides not to advertise, then, it will earn a profit of ($2 million) if Pop Hop advertises and on the other hand, a profit of ($11 million) if Pop Hop does not advertise.
If Pop Hop advertises, then Fizzo makes a higher profit if it chooses (to advertise). On the other hand, if Pop Hop doesn't advertise, then Fizzo will make higher profit if it chooses (to advertise).
In a scenario whereby the firms act independently, the strategies that they will choose is that that both of the firms will prefer and choose to advertise.
A customer has signed a Letter of Intent (LOI) to buy $25,000 of XYZ mutual fund to qualify for a breakpoint that reduces the sales charge from 7% to 6%. The customer deposits $15,000 into the fund over the next 13 months. At the end of 13 months, the NAV is $20,000. How much does the customer have to deposit to complete the LOI?
A. 0
B. $5,000
C. $10,000
D. $15,000
Suppose the risk-free rate of return is 3.5 percent and the market risk premium is
7 percent. Stock U, which has a beta coefficient equal to 0.9, is currently selling
for $28 per share. The company is expected to grow at a 4 percent rate forever,
and the most recent dividend paid to stockholders was $1.75 per share. Is Stock
U correctly priced? Explain.
Answer:
kaya nyo po iyan
Explanation:
nice habbsjsxgjshsbvda
Which of the following is a true statement? Multiple Choice A fiduciary entity is a legal entity that takes possession of property for the benefit of a person. An estate is a fiduciary that comes into existence upon a person's death to transfer the decedent's real and personal property. A trust is also a fiduciary whose purpose is to hold and administer the corpus for other persons (beneficiaries). An estate exists only temporarily, but a trust may have a prolonged or even indefinite existence. All of the choices are true.
Answer:
All of the choices are true.
Explanation:
The following statements are considered to be true
a. The fiduciary entity acts as a legal entity in which the possession of the property could be taken so that it would be benefit to the person
b. The estate acts as a fiduciary would come into existence at the time when the death of the person would be convert into the decedent real & personal property
c. The trust acts as a fiduciary in the case when the motive is to be hold
d. The estate would be existed on temporary basis but the trust would be for non-definite existence
If the cost method is used to account for a long-term investment in common stock:____.
a. it is presumed that the investor has significant influence on the investee.
b. the earning of net income by the investee is considered a proper basis for recognition of income by the investor.
c. net income of the investee is not considered earned by the investor until dividends are declared by the investee.
d. the Investment account may be, at times, greater than the acquisition cost.
Answer:
net income of the investee is not considered earned by the investor until dividends are declared by the investee
Explanation:
Cost method can be regarded as
a method that is utilized when the influence of the investor over the investment that which he owns is just little or no influence , this could be typically described as owning less than 20% of the company. The investment will be recorded in the asset section of the balance sheet at historical cost. When an investment is made by an investing entity and the investment is having following two criteria, then the investment can be accounted for by the investor using the cost method.
Those criteria are;
1) There is no substantial influence by the investor over the investee.
2)There is no easily determinable fair value for the investment.
This cost method is best method when making a passive as well as long-term investment which doesn't result to influence over the company.
It should be noted that If the cost method is used to account for a long-term investment in common stock, then net income of the investee is not considered earned by the investor until dividends are declared by the investee
Badgersize Company has the following information for its Forming Department for the month of August.
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete $80,000
Conversion: 20% complete 24,000
Balance in work in process, August 1 $104,000
Units started during August 54,000
Units completed and transferred in August 59,000
Work in process (70% complete), August 31 ?
Required:
a. Calculate the equivalent units for the Forming Department for the month of August.
b. Find the cost per equivalent unit of input resource.
Question Completion:
Costs incurred in August:
Direct materials $154,000
Conversion costs $264,000
Answer:
Badgersize Company
Materials Conversion
a. Equivalent units 74,000 69,500
b. Cost per equivalent unit $3.162 $4.144
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Beginning WIP inventory 20,000 100% 20%
Units started August 54,000
Total units available 74,000
Transferred out 59,000
Ending WIP inventory 15,000 100% 70%
Cost of beginning WIP $80,000 $24,000 $104,000
Costs incurred in August 154,000 264,000 418,000
Total production costs $234,000 $288,000 $522,000
Equivalent unit Units Materials Conversion
Units transferred out 59,000 59,000 59,000
Ending WIP inventory 15,000 15,000 10,500
Equivalent units 74,000 69,500
Cost per equivalent unit
Total production costs $234,000 $288,000
Equivalent units 74,000 69,500
Cost per equivalent unit $3.162 $4.144
A permanent reduction in inflation would a. permanently reduce the frequency of price changes and permanently lower unemployment. b. permanently reduce the frequency of price changes and temporarily raise unemployment. c. temporarily reduce the frequency of price changes and temporarily lower unemployment. d. temporarily reduce the frequency of price changes and temporarily raise unemployment.
Answer:
b. permanently reduce the frequency of price changes and temporarily raise unemployment.
Explanation:
In the field of economics, the term 'inflation' may be defined as the rise in the price of an economy for a period of time. When the price level rises or increases, fewer goods can be purchased by each unit of currency. The price of the products increases in the market.
It also affects in the rate of unemployment. But when the inflation is reduce it can temporarily rise the rate of unemployment but it permanently reduces the frequency of the price changes in the economy.
You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a local bank that pays 7% annual interest. The client wants to deposit an amount that will provide her with $1,005,500 when she retires. Currently, she has $302,200 in the account. How much additional money should she deposit now to provide her with $1,005,500 when she retires?
Answer:
$283,005
Explanation:
The computation of the additional money that she deposited now is shown below:
As we know that
Future value = P × FV (7%, 8 Years)
Here
Future value = $1,005,500,
P represent the deposited amount
and FV (7%, 8 Years) is the future value (FV) of $1 at 7% for 8 years. Its value is to be determined from future value table.
From the table, the value of FV (7%, 8 years) is 1.7182.
Now
$1,005,500 = P × 1.7182
P = $1005500 × 1.7182
P = $585205
Now
The Additional deposit amount is
= $585,205 - $302,200
= $283,005