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
Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000 shares of $1 par value common sto
nikklg [1K]

Answer:

The appropriate solution is "$130,000".

Explanation:

The given values are:

No. of common shares outstanding

= 50,000

Dividend per share

= $1.80

No. of preferred shares outstanding

= 8,000

Dividend per share

= $5

Now,

The total dividend on common shares will be:

=  No. \ of \ common \ shared \ outstanding\times Dividend \ per \ share

On substituting the values, we get

=  50,000\times  1.80

=  90,000 ($)

The total dividend on preferred stock will be:

=  No. \  of \ preferred \ shares \ outstanding\times Divided \ per \ share

On substituting the values, we get

=  8,000\times 5

=  40,000 ($)

Hence,

The total dividend paid by company will be:

=  Total \ dividend \ on \ common \ shares +Total \ dividend  \ on \  preferred \ stock

=  90,000+40,000

=  130,000 ($)

Thus the above is the correct answer.

4 0
2 years ago
Lina wants to be a lawyer for her future career. Which extracurricular activity would be the most helpful? teacher’s aide marchi
Aleksandr [31]
I believe your answer would be C. Speech and Debate. Being a lawyer requires lots of debate, and speech to support your answer and make it more clear. 
3 0
3 years ago
Read 2 more answers
In a crosstabulation
alekssr [168]

Answer: D - both variables must be categorical

Explanation: Crosstabulation is a technique used in the examination of 2 categorical variables. It is also known as contingency table analysis.

Crosstabulation is an analytic and useful tool in marketing research.

It creates a good relationship between the variables with its unique naming. its variables have a low chance of standing alone.

7 0
3 years ago
Consider a business that can be run using a make-to-stock or make-to-order process. Further suppose that your demand is 10000 pe
Scorpion4ik [409]

The best choice would be Choose Make-to-Order Process.

Option b

<u>Explanation:</u>

Make to order (MTO) also known as made to order, is a type of business production strategy which allows the customers to buy the products that are designed or customised based on their own specifications.

In simpler words, this process involves the production of customised goods after the consent of the consumers.

Here it has been mentioned that the demand is 10,000 units per month and the capacity of the company production is 15,000 units. So, it can be inferred that the company would have enough time to produce the goods based on the desirability of the customers. (customised products).

Therefore, the best choice would be Choose make-to-order process.

6 0
2 years ago
The purpose of the Uniform Franchise Offering Circular is to
goldfiish [28.3K]
I think it’s b it is the most right played out
5 0
2 years ago
Other questions:
  • No matter how well the football team plays, they will win few games because they are in a league that consists mainly of stronge
    14·1 answer
  • (5). The variance of Stock A is .005, the variance of the market is .008 and the covariance between the two is .0026. What is th
    11·1 answer
  • CAN SOMEONE PLEASE HELP ME ASAP PLEASE!!!!​
    14·1 answer
  • ________ headings are self-contained, which means that readers can skim through just the headings and subheadings and understand
    8·1 answer
  • When resources are scarce, power differences across subunits are _________; when resources are plentiful, subunit power differen
    8·1 answer
  • All the following are benefits of attending a community college except that
    13·1 answer
  • What First things comes in your mind when you heard name china ? ​
    7·1 answer
  • A household is a person or a group of people who live in the same residence. In economics, households are also
    11·2 answers
  • At the beginning of the current period, Shamrock Corp. had balances in Accounts Receivable of $187,800 and in Allowance for Doub
    13·1 answer
  • Audra recently earned her associate’s degree and is looking for a job. Her resume lists her strengths in a separate section. Som
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!