1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dalvyx [7]
3 years ago
8

How long will it take for the dollar's purchasing power to be 3/4ths of what it is now, if the general inflation rate is expecte

d to continue at 5%?
Business
1 answer:
vaieri [72.5K]3 years ago
8 0

Answer:

5.61 years

Explanation:

Let the Present value be 'x'

Data provided in the question:

Future value = \frac{3}{4}x

Inflation rate, i = 5% = 0.05

Now,

Using the compounding

let number of years be n

thus,

Future value = Present value × [ 1 - inflation rate ]ⁿ

\frac{3}{4}x = x × (1  - 0.05)ⁿ

or

0.75 = 0.95ⁿ

on taking log on both the sides , we get

or

log(0.75) = n × log(0.95)

or

-0.125 = n × (-0.0223)

or

n = 5.61 years

or, n = 11.89 years

You might be interested in
Identify the features of stocks and bonds
ch4aika [34]

Explanation:

How to "buy at wholesale, sell at retail" like financial institutions

How to navigate today's increasingly volatile markets and manage risk

Common mistakes of the novice investor and how to reduce them

How you can time the market by waiting for opportunity to come to you

A rules-based strategy for trading in any market and any asset class

3 0
3 years ago
The tools, skills, organization, and knowledge used to extract energy from nature are the
DENIUS [597]
What kind of energy like solar panels and windmills.
6 0
3 years ago
What the reasons for creating the necessity for restructuring the Organization Structure?
Nataly [62]

Answer:

To execute new strategy

Explanation:

Firms and organisations on a quarterly or yearly basis try to change their business strategies to improve revenues and to compete in the market. Overall, implementing a new strategy is complex and it is important to perform restructuring in order to effectively apply a strategy. A restructuring process helps to easily adopt a strategy without complexities.

4 0
3 years ago
Variable Fixed Output Marginal Total Total Marginal cost
allsm [11]

Answer:

The average total cost of producing 60 units of output is:

b. $21.67

Explanation:

a) Data and Calculations:

Variable   Fixed   Output     Marginal Physical     Total      Total    Marginal

Input         Input                  Product  of Variable    fixed  variable    Cost

                                              input                         cost        cost

0                 1             0                                           $500        $0

1                  1            10               (A)                       $500      $200         (F)

2                 1           25               (B)                       $500        400          (G)

3                 1           45               (C)                       $500        600          (H)

4                 1           60               (D)                       $500        800           (I)

5                 1           70               (E)                       $500       1000           (J)

The total cost of producing 60 units of output = $1,300 ($500 + $800)

Average total cost of producing 60 units of output = $21.67 ($1,300/60)

8 0
3 years ago
The average erp project takes​ ___________ months to complete.
stealth61 [152]
Actually, the time frames of ERP projects would actually depend on different scenarios taking place. These scenarios are as follows:

For financial modules: 2.5 - 4 months
For financial modules and sales functionality: 5 - 6 months
For financial modules, sales, and inventory functionality: 5 - 7 months
4 0
3 years ago
Other questions:
  • Which two careers would have a stage as a workplace? A/V technology and the performing arts the visual arts and telecommunicatio
    11·2 answers
  • Why do managers consider direct costs to be more accurate than indirect​ costs?
    9·1 answer
  • In order for ads to be effective, what is the first thing that they must do?
    15·2 answers
  • Dimitri has several apple trees in his yard, and apples are a perfectly competitive market with a price of $2 per pound. if dimi
    11·1 answer
  • A. how many tins of popcorn balls should i try to sell through each store?
    13·1 answer
  • G.R. Dry Foods Distributors specializes in the wholesale distribution of dry goods, such as rice and dry beans. The firm’s manag
    5·1 answer
  • Sandoval needs to determine its year-end inventory. the warehouse contains 20,000 units, of which 3,000 were damaged by flood an
    10·1 answer
  • The following information has been provided to you by Watts Corporation: Net income $ 175,300 Increase in accounts payable 18,50
    13·1 answer
  • Cover page styles in the cover page gallery match the preformatted ____ styles in word, making it easier to create a coherent st
    15·1 answer
  • ______ for an expatriate is the combination of many types of payments or reimbursements and must take into consideration exchang
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!