Answer: A direct relationship
Explanation: The link or relationship between money supply and inflation rate : In normal economic circumstances, if the money supply grows faster than real output it will cause inflation. In a depressed economy (liquidity trap) this correlation breaks down because of a fall in the velocity of circulation. This is why in a depressed economy Central Banks can increase the money supply without causing inflation. This occurred in the US between 2008-14
However, when the economy recovers and velocity of circulation rises, increased money supply is likely to cause inflation.
In other words ,If you are Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary demand causes firms to put up prices.
Answer:
He needs to deposit each year $747.38
Explanation:
Giving the following information:
To help you reach a $5,000 goal in five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year for 5 years. Your first deposit will be made at the end of the first year. The money is deposited in a bank that pays 7% interest.
First, we need to calculate the final value of the first $500 that the father gave him:
FV= PV*(1+i)^n
FV= 500*(1.07)^5=
FV= 701.28
Now, we have to calculate the annual deposit required:
Difference= 5,000 - 701.28= 4,298.72
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (4,298.72*0.07)/[(1.07^5)-1]
A= $747.38
Answer:
1. Value added time = Cutting + Sewing time
Value added time = 5 min + 20 min
Value added time = 25 minutes
Non-value added time = Total within batch wait time + Move time
Non-value added time = (25 minutes*(40-1)) + 2 minutes
Non-value added time = 977 minutes
Total lead time = Value added time + Non-value added time
Total lead time = 25 minutes + 977 minutes
Total lead time = 1,002 minutes
2. Value added ratio = Value added time / Total lead time
Value added ratio = 25 minutes / 1,002 minutes
Value added ratio = 0.02495
Value added ratio = 2.5%
Answer:
the annual depreciation rate is 25%
Explanation:
The computation of the depreciation rate is shown below:
= Yearly depreciation ÷ (Purchased cost - salvage value)
= ($3,000 × 12 months) ÷ ($180,000 - $36,000)
= $36,000 ÷ $144,000
= 25%
Hence, the annual depreciation rate is 25%
we simply applied the above formula
Explanation:
The computations are shown below:
a. The market value of equity is
= $50.96 per share × 1,400,000 shares
= $71,344,000
b. The market value of debt is
= $105% × $21,100,000
= $22,155,000
c. Now the weights are as follows
Weight of equity is
= $71, 344,000 ÷ ($71,344,000 + $22,155,000 )
= 0.7630
And,
Weight of debt = 1 - 0.7630
= 0.237