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GrogVix [38]
3 years ago
9

f the interest rate is 7.8% per year, approximately how long will it take for your money to quadruple in value? (Use the Rule of

72.) b. If the inflation rate is 4.9% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72 to compute the number of years. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
kondaur [170]3 years ago
6 0

Answer:

The rule of 72 establishes that, to determine the time in which an investment will double its initial capital through the generation of compound interest, 72 must be divided by the interest rate number of said financial investment.

In the present question, the interest rate is 7.8%, with which the investment would double in 9.23 years (72 / 7.8 = 9.23).

Now, at the same time there will be an annual inflation of 4.9%, that is, an accumulated inflation of 45.22% (4.9 x 9.23 = 45.22). In other words, the real growth of investment will not be 100%, but the accumulated inflation will have to be discounted from said number, with which the real growth of investment will be 54.88% over those 9.23 years.

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posledela

Answer:

D. Should Shut Down

Explanation:

A perfect competition firm is at profit maximising equilibrium where : Marginal Revenue [Price] = Marginal Cost .

If MR > MC : Firm's additional production is profitable, it tends to increase production. If MR < MC : Firm's additional production is loss making, it tends to decrease production.

However, If firm's Price i.e MR < Average Variable Cost : The firm's per unit price is even unable to cover it's per unit average variable cost. This situation is referred to as 'Shut Down' point & firm should close down its production in the case.

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7 0
4 years ago
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PolarNik [594]

Answer:

the store rent that should be allocated in department 3 is $100000

Explanation:

if we assume that we charge the rent per square feet occupied, then we can say

department rent = charge per square feet* number of square feets

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also if

total rent = rent department 1 + rent department 2  + rent department 3

r total = r1 + r2 + r3 = k*sf1 + k*sf2 + k*sf3 = k*( sf1 + sf2 + sf3)

k= r total / ( sf1 + sf2 + sf3)

replacing values

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thus for department 3

r3 = k* sf3= $ 4 per sq.ft * 25000 sq.ft = $100000

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