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Bas_tet [7]
3 years ago
14

If inflation is increasing at 2.4 percent per year, and your salary increases at the same rate, how long will it take your salar

y to double? (Round up your answer to the next whole number.)
Business
1 answer:
Oksana_A [137]3 years ago
5 0

Answer:

it take 29.23 years, my salary to double.

Explanation:

To make the salary double I have to increase the value of salary by 100%. If inflation rate is 2.4 percent per year and salary increase the same rate the time period to make it double can be calculated as follow.

As every year 2.4% has compounding effect, so we will use compounding formula to solve this problem.

Target value = Existing value ( 1 + growth rate )^time period

200% = 100% ( 1 + 2.4% )^n

2 = 1 ( 1 + 0.024 )^n

2 = 1 ( 1.024 )^n

2 = 1.024^n

Taking log on both sides to solve the n

Log 2 = n Log 1.024

n = Log 2 / Log 1.024

n = 29.23 years

I will take 29.23 year to double the salary

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Answer:

No

Explanation:

When Congress enacted the Federal Reserve Act in 1913, they stated the FED's mandates:

  1. promote maximum employment
  2. promote stable price

The FED's main objective is to conduct monetary policy in order to stabilize the economy and promote economic growth.

By stabilizing the economy the FED will lower inflation rate, therefore stabilizing prices. When the FED promotes economic growth, the unemployment rate should decrease, hopefully reaching a full employment.

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3 years ago
ABC, Inc. a contracting business has purchased a truck costing $50,000 with a depreciable life of 5 years. Using
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Answer:

it would increase

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you pay to pay for gas and oil

8 0
3 years ago
For a recent 2-year period, the balance sheet of Blue Company showed the following stockholders’ equity data at December 31 (in
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Answer:

Par value of common stock is $2.5

Explanation:

The par value of common stock can determined by dividing the common stock total amount in each of the two years by the shares issued and outstanding in each year as demonstrated below:

2019:

Par value of common stock =Common stock($)/shares issued

common stock($) is $555 million

shares issued and outstanding is 222 million shares

par value of common stock=$555 million/222 million=$2.5

2020:

Par value of common stock =Common stock($)/shares issued

common stock($) is $560 million

shares issued and outstanding is 224 million shares

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Ultimately the par value of common stock as shown be computations for both years is $2.5

7 0
3 years ago
Discuss how you react to changes in the environment. For example, there is a change in your class schedule or a change in the pr
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Answer: my reaction would probably not be good

Explanation:

8 0
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If you put up $21,000 today in exchange for a 8.25 percent, 14-year annuity, what will the annual cash flow be
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Answer:

$2,584.34

Explanation:

we can use the present value of an ordinary formula to calculate this:

present value = annual payment x annuity factor

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annual payment = present value / annuity factor = $21,000 / 8.12586 = $2,584.34

When the interest rates are not whole number, e.g. 4%, instead of trying to use a present value annuity table, you should look online for annuity calculators that will calculate the annuity factors for you.

8 0
3 years ago
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