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3 years ago

Using the rule of 70, about how much would $100 be worth after 50 years if the interest rate were 7 percent?

1 answer:

4 0

The rule of 70 states that the doubling time or the time required to double an investment is equivalent to 70 divided by the interest rate. So in this case the interest rate is 7%, so the doubling period is:

doubling period = 70 / 7 = 10 years

Therefore the investment doubles every 10 years. So:

0 year = $100

10 year = $200

20 year = $400

30 year = $800

40 year = $1600

50 year = $3200

Answer:

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She would receive unemployment

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3 years ago

Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 30/2 and MUz/Pz = 45/3. To maximize uti

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Answer:

Make no change in Y and Z.

Explanation:

It was assumed that consumer purchases the combination of two goods, Y and Z.

$\frac{MU_{Y} }{P_{Y}}= \frac{30}{2} = 15$

$\frac{MU_{Z}}{P_{Z}}=\frac{45}{3}=15$

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We can see that the ratio of marginal utilities is equal to the price ratio of the products. Hence, the consumer should not make any changes to the combination of products.

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3 years ago

A ______________________ is created each time the federal government spends more than it collects in taxes in a given year.

Vlad [161]

Answer:

Budget deficit / Fiscal deficit

Explanation:

At the start of the year, every government prepares a budget e.g. all sources of revenue (direct taxes, indirect taxes, aids etc) and projected expenses are also mentioned (development of society, defense etc.).

When a government spends more than its revenue from taxes so it means that government is running a budget deficit or a fiscal deficit which are covered through fiscal measures by government e.g. increasing taxes or reducing public spending.

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4 years ago

Required:

olga55 [171]

Answer:

Find below the variables missing from the question:

Selected sales and operating data for three divisions of different structural engineering firms are given as follows :

Division A Division B Division C

Sales $5,800,000 $9,800,000 $8,900,000

Average operating assets $1,450,000 $4,900,000 $2,225,000

Net operating income $284,200 $872,200 $191,350

Minimum required rate of return 18.00% 17.80% 15.00%

On the basis on return on investment Division A is preferred

On the basis of residual income Division A is also preferred

Explanation:

Return on investment is the net operating income compared to the average operating assets in the year:

Division A return on investment=$284,200/$1,450,000=19.6%

Division B return on investment=$872,200/$4,900,000=17.8%

Division C return on investment=$191,350/$2,225,000 =8.60%

Residual income=net operating income-(required rate of return*average operating assets

Division A residual income=$284,200-(18%*$1,450,000)=$23200

Division B residual income=$872,200-(17.80%*$4,900,000)=$0

Division C residual income=$191,350-(15%*$2,225,000)=$=$191,350-(15%*$2,225,000)

4 0

3 years ago