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3 years ago

8

The money multiplier formula _____.

2 answers:

ANEK [815]3 years ago

5 0

determines the amount of new money that will be created with each demand deposit

Galina-37 [17]3 years ago

3 0

The money multiplier formula tells us the ratio of increase or decrease in the money supply that banks should generate corresponding to each dollar of reserves. This also tells the maximum amount the money supply could increase based on an increase in reserves within the banking system. The answer to this item is letter C.

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In every state, there is a government-subsidized university. This subsidy, in theory, would make it possible for tuition to be l

Hatshy [7]

Answer:

Explanation:

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3 years ago

Find the principal P that must be invested at rate r, compounded monthly, so that $1,000,000 will be available for retirement in

astraxan [27]

Answer:

$224,174

Explanation:

Note : I have uploaded the full question below :

The Principle P that is required can be calculated from the given data though discounting future cash flows as follows :

FV = $1,000,000

r = 7½%

t = 20 × 12 = 240

P/yr = 12

Pmt = $0

PV = ?

Using a Financial Calculator to input the values as shown above, the PV would be $224,174 . Thus, the principal P that must be invested must be $224,174.

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3 years ago

Master Hatter's demand for hats is 25,000 per year. The order cost is $425 and the carrying cost is $4.50 per unit. The cost pai

laiz [17]

Answer with its Explanation:

<u>Part A.</u> Economic order quantity Computation

Economic order quantity can be calculated by using the following formula:

EOQ = Squaroot of (2* D * S / H)

Here

Ordering cost per order is $425 which is S

Annual Holding cost per unit per year is $4.5 which is H

Annual Demand is 25000 Units

By putting values, we have:

EOQ = (2 * 25000 * $425 / $4.5) ^(1 / 2) = 2173 Hats

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<u>Part B.</u>

Total Cost at EOQ = Purchasing Cost + Total Ordering cost + Holding Cost

By putting values, we have:

Total Cost = 25,000 Units * $25 per unit + ($25,000 / 2173 Hats) * $425 + (2173 Hats / 2) * $4.5 = $634,778 Annual Cost

<u>Part C.</u>

For ordering at-least 2000 units per order, the total cost would be:

Total Cost under 2000 order quantity = 25,000 * $25 per unit + (25000/2000) * $425 + (2000/2) * $4.5

Total Cost under 2000 order quantity = $634,813

By ordering at least 2000 hats will bring a loss of $35 ($634,778 - $634,813), hence Master Hatter must only order in EOQ.

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3 years ago

A company is setting its direct materials and direct labor standards for its leading product. Materials cost from the supplier a

stepladder [879]

The answer is 12$ per hour

4 0

3 years ago

A phone company offers two monthly charge plans. In Plan A, there is no monthly fee, but the customer pays cents per minute of u

Andreas93 [3]

Answer:

For more than 180 minutes of phone use.

Explanation:

Let m represent number of minutes of phone use in a month.

We have been given that in Plan A, there is no monthly fee, but the customer pays $0.06 per minute of use.

The cost of using m minutes in plan A would be $0.06m$ .

We are also told that in Plan B, the customer pays a monthly fee of $4.80 and then an additional $0.03 per minute of use.

The cost of using m minutes in plan B would be $0.03m+4.80$ .

To find the amounts of monthly phone when Plan A will cost more than Plan B, we will set cost of plane A greater than cost of plan B as:

$0.06m>0.03m+4.80$

Let us solve for m.

$0.06m-0.03m>0.03m-0.03m+4.80$

$0.03m>4.80$

$\frac{0.03m}{0.03}>\frac{4.80}{0.03}$

$m>180$

Therefore, Plan A will cost more than Plan B for more than 180 minutes of phone use.

4 0

3 years ago