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Setler79 [48]
3 years ago
14

Suppose your bank pays you 4 percent interest per year on your savings​ account, so that​ $1,000 grows to​ $1,040 over a oneminu

syear period. If prices increase by 1 percent per year over that​ time, approximately how much real value do you gain by keeping​ $1000 in the bank for a​ year?
Business
1 answer:
Fed [463]3 years ago
8 0

Answer:

3 percent which is $30

Explanation:

The real value of money is measured against a basket of goods or services, or against a particular product or service.  The real value is adjusted for inflation. In other words, the real value of money is its nominal value adjusted for inflation.

If the bank pays an interest rate of 4  percent, which leads to an increase of savings from $1000 to  $1040, should prices increase by 1 percent, then the real value of money has increased by 3 percent. One percent increase in prices represents inflation.  Keeping $1000 in the bank will earn a 3 percent real value or $30.

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4. Savings are particularly important to young people because:
katen-ka-za [31]

Answer:

I think it's D

Explanation:

because savings are in the beginning of their financial lives,”

I hope this helped u :)

3 0
3 years ago
John is a successful businessman. He always maintains a high bank balance. Hence the bank pays him interest. John uses this acco
ratelena [41]

Answer:

Interest-bearing checking accounts

Explanation:

Interest bearing checking accounts provide the customers with a certain amount of interest rates depending on the amount of balance the customers have in their checking accounts.

In general, the interest rate from interest-bearing checking accounts wouldn't be as high as normal saving account. But, many people often use this because it is easier to liquidate your cash through this type of accounts. Fast liquidation make this type of account a convenient options for someone who often conduct a purchase.

4 0
3 years ago
Which of the following statements is correct? Multiple Choice
nikitadnepr [17]

Answer: D -LIFO results in a higher net income than FIFO when costs are falling.

Explanation:

The LIFO and FIFO are methods of accounting for inventory.

LIFO means last in, first out. It means the last inventory purchased is the first inventory sold.

FIFO means first in,first out. It means older inventories are sold off first.

During period of rising prices, LIFO results in lower net income because the Cost of Goods Sold is higher. Inventories cost more during periods of rising prices.

When prices are falling , the LIFO method results in a lower cost of goods sold and therefore a higher net income.

4 0
3 years ago
A student is looking at a bacterial specimen using the oil immersion lens, but has forgotten to put immersion oil on the slide.
Reika [66]

Answer:

A student is looking at a bacterial specimen using the oil immersion lens, but has forgotten to put immersion oil on the slide. The specimen will appear larger than it would if immersion oil was used.

somewhat fuzzy and have poor resolution.

Explanation:

Oil immersion enhances visibility, once it is not there it will make the image to be viewed somewhat fuzzy and have poor resolution.

5 0
3 years ago
Nadira stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, she aske
Lena [83]

Answer:

In-depth interview

Explanation:

Nadira is conducting a type of qualitative data collection called in-depth interview. In research methodology, in-depth interview is conducted by seeking information face to face from respondents. In some cases, it is done over call or mails for geographically dispersed population.

In case of face to face interview, questions can be asked based on the response from the audience, thereby obtaining in-depth information from them.

5 0
3 years ago
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