Answer:
$22,222.22
$57,142.86
INCREASES
Explanation:
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
If $4000 is deposited and reserve requirement is 18%
reserves would increase by $4000 x 0.18 = 4720
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
$4000 / 0.18 = $22,222.22
$4000 / 0.07 = $57,142.86
It can be seen that the higher the reserve requirement, the lower the increase in the total value of checkable deposit
Answer:
$184.27
Explanation:
initial cash balance $34
initial short-term loan balance $180
net cash inflow Q1 = $36
repaid $50 to short term loan including interests ($3.60)
initial cash balance $20
short-term loan balance = $133.60
net cash outflow Q2 = $48
short term loan was taken to cover this deficit plus $2.67 in interests ($133.60 x 2%)
short term loan balance at the end of Q2 = $133.60 + $48 + $2.67 = $184.27
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Answer:
$473,760
Explanation:
Calculation to determine the incremental revenues next year from the upgrade
Using this formula
Incremental revenues= Units* Percentage Increase in total sales*Sales price
Let plug in the formula
Incremental revenues=94000 units* 24% * $21
Incremental revenues= $473,760
Therefore the incremental revenues next year from the upgrade will be $473,760
