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2 years ago

A depreciation of the u. S. Real exchange rate induces u. S. Consumers to buy:.

1 answer:

8 0

A depreciation of the u. S. Real exchange rate induces u. S. Consumers to buy more domestic goods and fewer foreign goods.

<h3>What is depreciation?</h3>

This is a term that is used to refer to the fall in the value of a currency. It is a fall in the currency of a country compared to that of other currencies.

At a time where there is a depreciation, people would want to buy more of the goods that are made in their country.

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A customer, age 45, invests $100,000 in a variable annuity contract. It imposes an 8% charge if the contract is surrendered with

qaws [65]

Answer:

the client should wait 10 more years until the contract is worth $180,000 since he will earn a slightly higher interest rate

Explanation:

we must determine the effective interest earned by the client if he accepts the company's proposal:

future value = present value x (1 + r)ⁿ

121,000 = 100,000 x (1 + r)⁵

(1 + r)⁵ = 121,000 / 100,000 = 1.21

⁵√(1 + r)⁵ = ⁵√1.21

1 + r = 1.0389

r = 0.0389 = 3.89%

if the client waits 10 more years until he is able to annuitize the account, he should earn:

180,000 = 100,000 x (1 + r)¹⁵

(1 + r)¹⁵ = 180,000 / 100,000 = 1.80

¹⁵√(1 + r)¹⁵ = ¹⁵√1.80

1 + r = 1.03996

r = 0.03996 = 4%

8 0

4 years ago

At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15

TEA [102]

Answer:

The implied value of called feature is $111.49 approx

Explanation:

Detailed step wise solution is given below:

8 0

3 years ago

The liquidity approach to measuring money defines the m2 money supply as

mr Goodwill [35]

<span>The liquidity approach to measuring money defines the M2 money supply as the temporary store of value of anything that could be turned into money or has high liquidity. When they measure the assets they are trying to determine what would be the best to liquidate to make sure they are getting the most money from their items. </span>

3 0

3 years ago

Arundel Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has

Ipatiy [6.2K]

Answer:

After the adjusting entry is made, Allowance for Doubtful Accounts balance is a credit balance of $22,290

Explanation:

Arundel Company uses aging to estimate uncollectibles.

Estimated uncollectibles = $250,000 x ( 1 - 99.5%) + $70,000 x (1 - 91%) + $30,000 x (1 - 73%) + $8,000 x (1 - 17%) = $1250 + $6,300 + $8,100 + $6,640 = $22,290

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000.

Bad debt Expense = $22,290 + $2,000 = $24,290

The adjusting entry:

Debit Bad debt Expense $24,290

Credit Allowance for Doubtful Accounts $24,290

After the adjusting entry is made, Allowance for Doubtful Accounts balance is a credit balance of $22,290

4 0

3 years ago

The market demand for wheat is Q = 100 − 2p + 1pb + 2Y . If the price of wheat, p, is $2, and the price of barley, pb, is $3, an

stira [4]

Answer:

0.95

Explanation:

Given that,

Market demand for wheat: Q = 100 − 2p + 1pb + 2Y

price of wheat, p = $2

price of barley, pb = $3

Income, Y = $1000

Q = 100 − 2p + 1pb + 2Y

= 100 - (2 × 2) + (1 × 3) + (2 × 1,000)

= 100 - 4 + 3 + 2,000

= 2,099

Differentiating Q with respect to Y,

dQ/dY = 2

Income elasticity of wheat:

= (dQ/dY) × (Y ÷ Q)

= 2 × (1,000 ÷ 2,099)

= 0.95

4 0

4 years ago