Answer:
The amount after 40 years = $3,058,897.36
Explanation:
As per the data given in the question,
For next year, Sum deposit = $55,000×(1+3%)×9%
= $5,098.5
Accumulated amount = First year payment÷(rate of return - growth rate) × ((1+rate of return)∧no. of years - (1+ growth rate)∧no. of years
= $5098.5 ÷ (10% - 3%) ×((1+10%)^40 - (1 + 3%)^40)
= $3,058,897.36
Hence, The amount after 40 years = $3,058,897.36
The rate you expect to see on a treasury bill is 5.31%.
Short-term government securities and Treasury Bills have maturities ranging from a few days to 52 weeks. The face value of bills is discounted when they are sold. Since the U.S. government backs Treasury Bills, they are regarded as a secure and conservative investment. T-Bills are typically kept until they reach maturity. However, some holders could prefer to cash out before maturity and take advantage of the benefits from the investment's short-term interest by reselling it on the secondary market.
The real rate is 3. 75%
= 3. 75/100
= 0.0375
The inflation rate is 1.5%
= 1. 5 /100
= 0.015
Therefore the rate on the treasury bill can be calculated as follows
= (1+0.015)(1+0.0375)-1
= (1.015×1.0375)-1
= 1.0531-1
= 0.0531×100
= 5.31%
Hence the rate that is expected to be seen on the treasury bill is 5.31%.
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False, you can get an income many other ways such as working for yourself and selling goods.
Answer:
external stakeholder
Explanation:
External Stakeholders are the individuals or the groups of the individuals who are outside a particular project or business, but they can affect or they can be affected by the project or business.
In the case case study, Widgets Inc. acts as a vendor for the appliance manufacturing company by supplying machine parts. Widgets Inc. is outside the appliance manufacturing company but is affected by the company as its revenue depends on the appliance manufacturing company. Thus, Widgets Inc. is an external stakeholder for appliance manufacturing company.
Answer: There will be a shift in the demand curve to the right.
Explanation:
A booming economy is a peak phase in the business cycle when there is rapid economic expansion which results into higher GDP, higher inflation rate, lower unemployment and rising asset prices.
When investors in the stock market expects a booming economy and an increase in the prices of stocks, the demand curve will shift outwards that is, the demand curve will shift to the right. This means that investors will buy more stocks because they are expecting a price increase.
This is graphically shown below