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Schach [20]
3 years ago
13

What would happen to the buying power of your investment after one year if your rate of return was 8% and the rate of inflation

was 3%?
Business
1 answer:
nekit [7.7K]3 years ago
7 0
As long as the rate of return is bigger than the inflation, the value and amount of money will increase and so will the purchasing power: the correct answer is "it will increase".

For example, if you invest 100 dollars, you will receive 108 dollars back, and you'd need 103 dollars to have the same value of money as before - but you have more. 
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In the fall, Jay Thompson decided to live in a university dormitory. He signed a dorm contract under which he was obligated to p
Vesna [10]

Answer:

The cheapest alternative is: $300 a month immediately.

Explanation:

Giving the following information:

The dorm cost was $5000 for the two semesters

Jay had already paid a month after he moved into the dorm.

Jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment.

His share of the apartment rent and utilities will be $390 per month.

Each semester is 4.5 months long.

Alternative A:

One student offered to move in immediately and to pay Jay $300 per month for the eight remaining months of the school year.

Income= 300*8= 2400

Apartment rent= (3120)

Food= (3600)

Total= (4320)

Alternative B:

A second student offered to move in the second semester and pay $2500 to Jay.

Income= 2500

Dorm rent= (5000/9)*3.5= (1944)

Apartment rent= (1755)

Dorm food= 500*3.5= (1750)

Apartment food= (2025)

Total= (4974)

Alternative C:

Stay in the dorms

Dorm rent= (4444.44)

Dorm Food= (4000)

Total= $8444.44

<u>The cheapest alternative is A.</u>

8 0
3 years ago
Dorothy Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e
tensa zangetsu [6.8K]

Answer:

Explanation:

April 2

Dr Cash  34,830

Dr Equipment 15,540

    Cr Owner's capital 50,370

April 2

no entry

April 3

Dr Supplies 830

       Cr Accounts payable 830

April 7

Dr Rent expense 630

        Cr Cash 630

April 11

Dr Accaunts receivable 1360

    Cr Service Revenue          1360

April 12

Dr Cash 3940

     Cr Unearned service revenue 3940

April 17

Dr Cash 2950

     Cr Service Revenue 2950

April 21

Dr Insurance expense 150.30

    Cr Cash 150.30

April 21

Dr wages expense 1280

    Cr Cash                      1280

April 30

Dr Supplies expense 130

     Cr Supplies                130

April 30

Dr Equipment 7000

    Cr Owner's capital 7000

4 0
3 years ago
Knowledge Check 01 On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man
WARRIOR [948]

Answer:

Date      Account Title         Debit        Credit

Feb 13    Cash                 $10,975  

                  Sales                                  $10,000

            Sales Tax Payable          $975

             (10000 * 9.75%)

5 0
3 years ago
At Emmerson Company, one bookkeeper prepares the cash deposits while the other bookkeeper enters the collections in the journal
marusya05 [52]

Answer:

d. segregation of duties

Explanation:

Segregation of duties defines that when a different number of people doing their duties for the same purpose. For example a person receives an envelope of cheque and another person records in accounting system.

According to the given situation, one person who is bookkeeper prepared cash deposit and another person records the collection of journal and ledger. So, this indicates the segregation of duties

8 0
3 years ago
The following are methods of exchange EXCEPT
Dima020 [189]

Answer:

a bitcoin economy is the answer

6 0
2 years ago
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