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2 years ago

What is the real value of your savings if the price level increases by 6 percent for the year?

Business

1 answer:

Feliz [49]2 years ago

5 0

The real value of your savings if the price level increases by 6 percent for the year will be $5,660.

If the price level increases by 6%, then the year-end price level index would be 106.

Real value of savings = 6,000 * (100 / 106) = $5,660

The charging stage is the average of contemporary costs across the whole spectrum of products and services produced in an financial system. In extra preferred phrases, price level refers back to the rate or value of an excellent, service, or security in the financial system.

the general rate level is a hypothetical degree of average expenses for some set of products and services, in an economic system or monetary union for the duration of a given c program language period, normalized relative to some base set. Generally, the overall price degree is approximated with a each day charge index, commonly the Daily CPI.

We are able to think of this charge level for a basket of products as a popular fee index that is created from diverse items and services within the USA. For instance, the customer price index (CPI) within America is a representative rate degree for a basket of goods.

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Some countries use market-based systems to help control access to fisheries. One such program is the

klasskru [66]

Answer:

individual transfer rights system.

Explanation:

Some countries use market-based systems to help control access to fisheries. One such program is the individual transfer rights system.

An individual transfer rights (ITR) system can be defined as a system in which the government of a particular country gives each fishing vessel or owner a specific percentage of the total fish allowable to be caught each year.

7 0

3 years ago

The following is a partial trial balance for the Green Star Corporation as of December 31, 2021:

Vinil7 [7]

Answer and Explanation:

The presentation of the income statement is presented below:

Income statement

Revenues and gains:

Sales revenue 1,400,000

Add: Interest revenue 35,000

Add: Gain on sale of investment 55,000

Total revenues and gains 1,490,000

Less:

Expenses and losses:

Cost of goods sold 740,000

General and administrative expenses 80,000

Selling expenses 185,000

Interest expense 45,000

Total expenses and losses 1,050,000

Income before income tax 440,000

Income tax expense - 135,000

Net income 305,000

EPS = Net income ÷ Number of common shares

($305,000 ÷ 100,000) 3.05

Income statement

Sales 1,400,000

Less: Cost of goods sold - $740,000

Gross profit 660,000

Less:

Operating expenses:

General and administrative expenses $80,000

Selling expenses $185,000

Total operating expenses -$265,000

Operating income $395,000

Other incomes and expenses

Interest revenue $35,000

Gain on sale of investment $55,000

Interest expense -$45,000

Total other income, net $45,000

Less: Income before income tax $440,000

Income tax expense -$135,000

Net income $305,000

EPS = Net income ÷ Number of common shares

(305,000 ÷ 100,000) 3.05

7 0

3 years ago

Solartech Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of 143.5 million yen, whe

Ulleksa [173]

Answer:

$929,404.15 (approx)

Explanation:

The dollar amount actually earned by Solartech after exchanging yen for U.S. dollars :-

= Price ÷ One dollar bought

= 143,500,000 ÷ $154.40 yen

= $929,404.15 (approx)

Therefore for computing the dollar amount actually earned by Solartech after exchanging yen for U.S. dollars, we simply divide price by one dollar bought.

3 0

3 years ago

If 7000 dollars is invested in a bank account at an interest rate of 7 per cent per year, Find the amount in the bank after 14 y

Harlamova29_29 [7]

Answer:

1. Interest compounded annually = $18,049.74

2. Interest compounded quarterly = $18,493.77

3. Interest compounded Monthly = $18,598.16

4. Interest compounded continuously = $18,651.19

Explanation:

First let me state the formula for compound interest:

The future value of a certain amount which is compounded is the total amount (Principal + interest) on the amount of money, after compound interests have been applied, and this is shown below:

FV = PV $(1+\frac{r}{n} )^{n*t}$

where:

FV = Future value

PV = Present value = $7,000

r = interest rate in decimal = 0.07

n = number of compounding periods per year

t = compounding period in years = 14

For interests compounded continuously, the Future value is given as:

FV = PV × $e^{r*t}$

where

$e$ is a mathematical constant which is = 2.7183

Now to calculate each on the compounding periods one after the other:

1. Interest compounded annually:

here n (number of compounding periods annually) = 1

Therefore,

FV = 7,000 × $(1+\frac{0.07}{1})^{14}$

FV = 7,000 × $1.07^{14}$ = $18,049.74

2. Interest compounded quarterly:

here, n = 3 ( there are 4 quarters in a year)

FV = 7,000 × $(1+\frac{0.07}{4} )^{4*14}$

FV = 7,000 × $1.0175^{56}$ = $18,493.77

3. Interest compounded Monthly:

here n = 12 ( 12 months in a year)

FV = 7,000 × $(1+\frac{0.07}{12} )^{12*14}$

FV = 7,000 × $1.005833^{168}$ = $18,598.16

4. Interests compounded continuously:

FV = PV × $e^{0.07 * 14}$

FV = 7,000 × 2.66446 = $18,651.19

3 0

3 years ago

Brustle's Pottery either factors or assigns all of its receivables to other firms. This is known as: a. capital financing. b. ac

Mazyrski [523]

Answer:

Accounts receivable financing

Explanation:

The accounts receivables are used as a collateral to receive a loan from the bank or factor. The amount received are deducted from the loan assigned and the remainder are paid back to the firms. The interest rate is agreed between the factor and firm using invoice discounting. Whereas the factoring is the assigning of the responsibility of accounts receivables management to the other organization. So both of these are the ways through which accounts receivables are used to finance the company's working capital or long term projects.

5 0

3 years ago