The yearly rate of inflation in car prices over the 8 years that Dave bought his new car for $8,400 is <u>5.1%</u>.
<h3>What is inflation?</h3>
Inflation is the general increase in prices of goods and services in an economy which reduces the purchasing power of the consumers.
Based on the given information, the yearly increase in the inflation rate can be computed using the present value formula from an online finance calculator as below.
<h3>Data and Calculations:</h3>
N (# of periods) = 8 years
I/Y (Interest per year) = 5.1%
PMT (Periodic Payment) = $0
FV (Future Value) = $12,500
<u>Results:</u>
PV = 8,396.31 or $8,400
Total Interest $4,477.49
Thus, the yearly rate of inflation in car prices over the 8 years that Dave bought his new car for $8,400 is <u>5.1%</u>.
Learn more about inflation at brainly.com/question/8149429
<span><span>Checking accounts: best for unrestricted access to funds; typically worst for earning interest.
</span><span>
Savings accounts: good for earning some interest with quick access to funds.
</span><span>
Money market accounts: can have higher interest than savings accounts, plus some check-writing and ATM access.
</span><span>
Certificates of deposit (CDs): highest interest rates in exchange for most-limited access to funds</span></span>
Answer:
In simple words, When it comes to conserving money, the most crucial factor to remember is the protection principle. When you save enough money beyond what you'll need for short-term objectives and emergencies, you'll have money to invest. Professionals advise saving one to two years' worth of account value in a contingency savings.
Thus, protecting principal is the core focus of the managers in savings plan.
Answer:
$236,500
Explanation:
Using the AFN equation to forecast Broussard's additional funds
Sales expected in 2019 2,150,000
( 8,600,000* .25)
After-tax profit margin 430,000
(10,750,000*4%)
Dividend payments 193,500
[$430,000 * 45%]
Addition to retained earnings $236,500
[$430,000 - $193,500]
Therefore forecast Broussard's additional funds needed for the coming year will be $236,500
