Answer:
It means that your money will lose value as you will earn less interest than the grow in the inflation rate.
Explanation:
The inflation is the change on the prices of goods and services from a market basket as they become more expensive year by year. The Inflation rate of 3% suggest that the prices in the economy will increase a 3% at the end of the year while the interest on the money you have deposited in your bank account will gain only 0.5% at the end of the year.
Then the prices of good and services will growth faster than the growth in your savings. This situation makes that you lose purchase power with your money and therefore it will not be intelligent to keep the money in that savings account. The best thing to do is to search for another investment such a Term Deposit or Stocks.
Answer:
Acceptance
Explanation:
For a contract there are some certain conditions to be fulfilled, to call it valid. This includes the basic two things:
Offer and acceptance.
Offer refers to the option provided by a party in the contract and that there is acceptance from opposite party to accept the offer, and when it is accepted as the offer itself, then the contract is valid.
In the given instance there is an alteration in the acceptance conditions as not same like offer. The offer price is $5,000 and that the acceptance price is $4,500.
Thus, there is no acceptance in this contract. Rather there is counter offer.
Answer:
present value; future value
Explanation:
When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the present value of the investment. This is achieved by discount the future cash flows using the appropriate discounting rate to show the effect of time value of money.
Then, If we express it in terms of dollars in the future, we call it the future value. This is achieved by Compounding the Principle or Present Value using the appropriate compounding rate to show the effect of time value of money
An investors primary goal is to make money. More specifically, money that is greater than the sum amount initially invested.
Answer:
The answer is A.
Explanation:
Closing/Ending balance in Allowance for Doubtful Accounts = Unadjusted credit (debit) balance in Allowance for Doubtful Accounts + Bad Debt Expense
To get Bad Debt Expense, we re-write the formula:.
Closing/Ending balance in Allowance for Doubtful Accounts − Unadjusted ending credit (debit) balance in Allowance for Doubtful Accounts
Ending/Closing method balance in allowance for doubtful debt= $5,000
Unadjusted ending credit (debit) balance in Allowance for Doubtful Accounts =$500
So we have:
= $5,000 − $500
= $4,500
