Answer:
The answer is A.
Explanation:
If a person's wealth is in cash, price level changes in the economy will definitely affect the his monetary wealth.
Price level changes arise as a result of inflation. Increase in general price level in the economy will reduce the purchasing power of the cash. For example, a good that used to sell for $2, it now goes for $5.
And if there is decrease in general price level, the purchasing power of the cash will increase.
Answer:
Total $53.0656 (millions)
Explanation:
We will need to add the present value of the coupon payment
and the present value of the maturity date
<u>present value of the annuity:</u>

C= 60 million x 5% /2 1.5
time= 20 years 2 payment per year = 40
rate = 6% annual = 0.06/2 = 0.03 semiannually

PV $34.6722
<u>present value of the bonds:</u>
Maturity 60
time 40
rate 0.03
PV $18.3934
<u>The value of the bond will be the sum of both</u>
PV c $34.6722
PV m $18.3934
Total $53.0656
Answer:
$614,457
Explanation:
The present value of the annual cash inflow of $100,000 for ten years can be found by the following formula:
Present Value = Annual Cash Inflow * Annuity Factor (Step 1)
Here
annuity Factor at 10% for 10 years time is
By putting values we have:
Present Value = $100,000 × 6.14457 = $614,457
Step 1 : Annuity Factor
Annuity Factor = (1 - (1 + r)^-n) / r
Here r is 10% and n is 10 years.
So by putting values, we have:
Annuity Factor = (1 - (1 + 10%)^-10) / 10% = 6.14457
Answer:
product departmentalization.
Explanation:
product departmentalization is the internal process performed by a corporation of dividing its business activities up according to the type of goods or services produced. Product departmentalization typically groups tasks related to a particular product or product line under one senior manager who specializes in that aspect of the company's business.
Board of governors.
The board has 7 members appointed by the President of the United States and confirmed by Congress who serve 14 year terms.