Earnings on principal is called interest. True False

Suppose an investor deposits $5,000 in an interest-bearing account at her local bank. The account pays 2.5% (annual) with intere

dlinn [17]

Answer:

FV= $6,418.20

Explanation:

Giving the following information:

Initial investment (PV)= $5,000

Interest rate (i)= 0.025/12= 0.002083

Number of periods (n)= 10*12= 120 months

<u>To calculate the future value (FV), we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 5,000*(1.002083^120)

FV= $6,418.20

4 0

3 years ago

If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes

Viefleur [7K]

Answer:

C) the industry would more closely approximate pure competition

Explanation:

A monopolistically competitive industry is one with different firms selling similar products that are slightly differentiated. It is very easy for firms to enter into industries that are monopolistically competitive. They also have the autonomy to increase their prices.

If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes they would then resemble a pure competition because they would all be selling identical products which would result in little or no competition.

5 0

2 years ago

1. define the forming stage and list four activities that happen in this stage

viva [34]

Answer:

The forming stage involves a period of orientation and getting acquainted. Uncertainty is high during this stage, and people are looking for leadership and authority. A member who asserts authority or is knowledgeable may be looked to take control.
It can be a petty clash of personality or an incompatibility in communication styles. Or it could be something more serious, such as a disagreement about the team's goals. It could even exhibit itself as one team member accusing another of not pulling their weight in the project.
Tuckman (1965) identified four stages of team development including Forming, Storming, Norming, and Performing. This widely referenced early work continues to provide a useful model for understanding the dynamic nature of the evolution of teams.
Stage 1: Forming. Feelings. ...
Stage 2: Storming. Feelings. ...
Stage 3: Norming. Feelings. ...
Stage 4: Performing. Feelings. ...
Stage 5: Termination/Ending. Some teams do come to an end, when their work is completed or when the organization's needs change.

4 0

3 years ago

In a certain economy, the components of planned spending are given by:

viktelen [127]

Answer:

B) 790-700r

Explanation:

Aggregate Expenditure is the expenditure by all the sectors of economy. By Households = Consumption (C), By Firms = Investment (I), By government = Govt spending (G) & tax leakages (T), By Rest world = Next Exports (NX).

Autonomous Expenditure is the level of expenditure in economy, which doesn't depend on level of Income = Y.

AE = C + I + G + NX

[500 + 0.8 (Y-150) - 300r] + [200 - 400r] + 200 + 10

500 + 0.8Y - 120 - 300r + 200 - 400r + 210

500 - 120 + 200 + 210 - 300r - 400r + 0.8y

790 - 700r + 0.8y

As, it can be seen that the part of AE = '790 - 700r', excluding '0.8y' : is not dependent on Income Y. So, it is Autonomous Expenditure

4 0

3 years ago

Suppose you win on a scratchâ€‘off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve req

Semenov [28]

Answer:

35000

A, d

Explanation:

Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.

If $3500 is deposited and reserve requirement is 10%

reserves would increase by $3500 x 0.10 = $350

Increase in the total value of checkable deposit is determined by the money multiplier

Money multiplier = amount deposited / reserve requirement

3500 / 0.1 = 35000

If the banks keep excess reserves, the amount of money available to be loaned out would reduce and this would reduce the increase in money supply.

Also, if individuals keep the money at home, it would reduce the amount of money that can be loaned out by banks

7 0

2 years ago