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Reika [66]
3 years ago
11

At an inflation rate of 9%, the purchasing power of $1 would be cut in half in just over 8 years (some calculators round to 9 ye

ars). How long, to the nearest year, would it take for the purchasing power of $1 to be cut in half if the inflation rate were only 4%?
Business
1 answer:
AnnZ [28]3 years ago
7 0

Answer:

18 years

Explanation:

For computing the number of years, we need to apply the future value formula i.e shown below:

Future value = Present value × (1 + interest rate)^number of years

where,

Future value = 2

Present value = 1

Interest rate = 4%

So, the number of years is

2 = 1 × (1 + 0.04)^number of years

After solving this, the number of years is 17.66 i.e 18 years

We simply applied the above formula so that the number of years could come

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1.<br> The price of labor is called<br><br><br> costs<br><br> demands<br><br> rates<br><br> wages
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A store has clearance items that have been marked down by 55%. They are having a sale, advertising an additional 35% off clearan
raketka [301]

Answer:33.75%

Explanation:

Let’s assume the price without discount is $100 .

Now from the information given , we have $100-0.25*$100 =0.75*$100

Which is 0.75 *$100= $75 is the price after the first discount .

0.75 - 0.55*$75= 0.45*$75

Now 0.45*75 = 33.75% which is the percentage of the original price .

3 0
2 years ago
How does the finance function contribute to the business​
Harrizon [31]

Answer:

In business, the finance function involves the acquiring and utilization of funds necessary for efficient operations. Finance is the lifeblood of business without it things wouldn't run smoothly. It is the source to run any organization, it provides the money, it acquires the money. (got the answer from google hehe)

Explanation:

8 0
3 years ago
A share of stock with a beta of 0.75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The T-bill
Anna11 [10]

Answer:

What the investors will do depends on whether the actual return will be higher, lower or the same as the required return (Opportunity cost of capital) .

The Actual return can be calculated using the Holding Period Return which is;

= (Earnings(Dividends) + (Ending Stock Price - Beginning Stock Price))/Beginning Stock Price

= (2 + (52 - 50))/50

= 4/50

= 8%

The Opportunity Cost of Capital can be calculated using CAPM.

= Risk Free Rate + beta(Market Premium)

= 4% + 0.75(7%)

= 9.25%

The Opportunity Cost of Capital is greater than the Actual Return from the stock so the stock is a bad buy.

Investors will not invest.

7 0
3 years ago
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