Answer:
FV= $1,930,661.48
Explanation:
Giving the following information:
Joe's starting salary is $80,000 per year. He plans to put 10% of his salary each year into a mutual fund. He expects his salary to increase by 5% per year for the next 30 years, and then retire. If the mutual fund will average 7% annually
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {8000*[(1.12^30)-1]}/0.12= $1,930,661.48
Answer:
A long-term investment.
Explanation:
The land should be classified as a long-term investment.
This is an asset owned by the company, that it intends to keep for more than a year. This asset is usually recorded on the asset side of a company's balance sheet.
It is the opposite of short-term investment which is sold within one year.
Answer:
Marginal Propensity to Consume = 0.8
Explanation:
Marginal propensity to consume (MPC) exhibits consumer's spending behavior as to what percentage of extra dollar is spent from extra dollar of income.
MPC is calculated as Increase in consumption divided by increase in income.
MPC: Increase in consumption / increase in income: 4,000 / 5,000
MPC = 0.8
Answer:
True.
Explanation:
With changing dimension of global market, where customer is considered as king in the market due to highly competitive market with homogenous goods and service are available in the market, where customer find it hard to distinguish between different goods and service, there is only one aspect which can differentiate the goods and service of one product to another is its quality and excellent customer service. Therefore, with the emerging market, it is essential for corporate to manage applying systems thinking, continuously improving quality, and providing excellent customer service.
