When they spend more than they are able to pay back! Hope this helped! BRANLIEST plz!
44% annual interest sounds too good to be true, but we'll work with it.
Don't know exactly how much is <span>$12 comma 00012,000.
I will work with $1,000,000 (one million). You can scale the results to the right amounts.
Future value = $1,000,000
i=0.44
n=88
Present value=$1,000,000/(1+0.44)^88=$1.159*10^(-8), not even one cent!
However, if the interest rate is 4% for 88 years (more likely), then
Present value=F/(1.04^88)=1,000,000/1.04^88=$317,000.50.
That's the amount you need to put in today to get $1000000 in 88 years at 4% APR (compounded annually).</span>
Answer:
B. $300,000
Explanation:
The computation of the reduction of retained earning amount is shown below:
= Number of shares of common stock × stock dividend percentage × market value
= 1,000,000 shares × 6% × $5
= $300,000
Since the dividend amount is adjusted while computing the ending balance of retained earning balance and the same is to be considered in the computation part.
All other information which is given is not relevant. Hence, ignored it
Very likely if you believe in yourself!
Good luck ;)
Answer:
sell bonds, increase discount rates and increase reserve requirements
Explanation:
The Federal Reserve’s three instruments of monetary policy are open market operations, the discount rate and reserve requirements ( Sometimes discount rate management is divided as discount and interest rate) .
Open market operations involve the buying and selling of government securities. The term “open market” means that the Fed doesn’t decide on its own which securities dealers it will do business with on a particular day. Rather, the choice emerges from an “open market” in which the various securities dealers that the Fed does business with – the primary dealers – compete on the basis of price. Open market operations are flexible, and thus, the most frequently used tool of monetary policy.
The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans.
Reserve requirements are the portions of deposits that banks must maintain either in their vaults or on deposit at a Federal Reserve Bank.
