What carries out public policy by performing tasks with the help of staff agencies?

You want to take a dream vacation in 3.5 years. You plan to save up $5,000 in your vacation sinking fund. Assume an interest rat

Ket [755]

<h3>Answer:</h3>

<h3>Explanation:</h3>

The formula for calculating the Monthly payments P for the sinking fund is as follows:

$P\;=\;\frac{A*i}{(1+i)^n-1}$

where,

P = Monthly payments to be made

A = Total amount to be accumulated

i = Interest rate for given time period

n = Number of time period

Assuming interest is applied at the beginning of each period.

We are given two scenarios.

<h3><u>Scenario (i) - Deposit is made during the year:</u></h3>

In this scenario, as some of the year is already passed (assume 6 months), to complete the time period of 3.5 years the interest will compound 3 times (as the 0.5 year payments can be adjusted in the remaining part of the first year and no interest is applied on it). Hence, the interest will be applied 3 times.

$\therefore P_{(i)}\;=\;\frac{5000*0.08}{(1+0.08)^3-1}\\\\P_{(i)}\;=\;\frac{400}{0.2597}\\\\P_{(i)}\;=\;1540.1676$

<h3><u>Scenario (ii) - Deposit is made at the beginning of the year:</u></h3>

For this case, the interest will be applied 4 times to complete the time period of 3.5 years for payment.

$\therefore P_{(ii)}\;=\;\frac{5000*0.08}{(1+0.08)^4-1}\\\\P_{(ii)}\;=\;\frac{400}{0.3605}\\\\P_{(ii)}\;=\;1109.6040$

3 0

3 years ago

The aggregate demand curve is downward sloping because

SSSSS [86.1K]

Answer:

D. an increase in the price of a good causes a decrease in market demand for that good.

Explanation:

First, if prices decrease, then people will feel wealthier and consume more and the aggregate demand increases. (Pigou´s effect)

Second, if interest rates decrease available domestic investors will invest in foreign countries where return (interest rates]) on investments are higher. If domestic investors invest in foreign countries the supply of dollars will increases. This will decrease the real exchange rate and then exports will be affected in a positive way; exports will increase and thus the aggregate demand.

Third, when the price level is down, consumers demand less currency, which means that they will keep more money in their bank accounts. If banks have more money, then the interest rate for loans decrease. If interest rates decrease, the cost of investment decreases too. Then, if the price for investment decreases, the demand for it increases and the aggregate demand decreases too.

3 0

4 years ago

How to commit not live?

VMariaS [17]

Answer:

Grab some peanut butter ;)

Explanation:

And your favorite pet;)

7 0

3 years ago

Read 2 more answers

SME Company has a debt-equity ratio of .60. Return on assets is 7.5 percent, and total equity is $486,000. a. What is the equity

polet [3.4K]

Answer:Equity multiplier=1.6

Explanation:

Debt equity ratio is given as debt/equity , Therefore

Debt = Debt equity ratio X Equity

=0.60 x $486,000

= $291,600

The Total assets given as Liability(debt+equity) will now be

=$291,600+$486,000

=$777,600.

Therefore Equity multiplier, Total assets/Total equity

=(777,600/486,000)=1.6

7 0

4 years ago

Taxable income and pretax financial income would be identical for Indigo Co. except for its treatments of gross profit on instal

sergejj [24]

Answer:

31-Dec-19

Dr Income tax expense $62,590.00

Dr Deferred Tax Assets $4,500.00

Cr To Income Tax Payable $60,520.00

Cr To Deferred tax liability $6,570.00

31-Dec-20

Dr Income tax expense $98,100.00

Dr Deferred Tax Liability $3,285.00

Cr To Income Tax Payable $99,135.00

Cr To Deferred tax Assets $2,250.00

31-Dec-21

Dr Income tax expense $37,440.00

Dr Deferred Tax Liability $3,285.00

Cr To Income Tax Payable $38,475.00

Cr To Deferred tax Assets $2,250.00

Explanation:

Preparation of the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019, 2020, and 2021

INDIGO CO. JOURNAL ENTRIES

31-Dec-19

Dr Income tax expense $62,590.00

Dr Deferred Tax Assets ($10,000*45%) $4,500.00

Cr To Income Tax Payable $60,520.00

Cr To Deferred tax liability ($14,600*45%) $6,570.00

(Being current income tax and deferred taxes)

31-Dec-20

Dr Income tax expense $98,100.00

Dr Deferred Tax Liability ($7,300*45%) $3,285.00

Cr To Income Tax Payable $99,135.00

Cr To Deferred tax Assets ($5,000*45%) $2,250.00

(Being current income tax and deferred taxes)

31-Dec-21

Dr Income tax expense $37,440.00

Dr Deferred Tax Liability ($7,300*45%) $3,285.00

Cr To Income Tax Payable $38,475.00

Cr To Deferred tax Assets ($5,000*45%) $2,250.00

(Being current income tax and deferred taxes)

5 0

3 years ago