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torisob [31]
3 years ago
11

John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather

to be able to withdraw $120 per month for the next 3 years. How much must John invest today at 5% per year compounded monthly so that his grandfather can withdraw $120 per month for the next 3 years?
Business
1 answer:
jeka943 years ago
6 0

Answer:

John must invest $3719.4

Explanation:

It is given that John grandfather withdraws $120 per month for 3 year

So total month = 12 ×3 =36 months

Total amount withdrawn S = 36×120 = 4320

m = 12 times per year

Rate of interest i = 5 % = 0.05

We know that S=P(1+\frac{i}{m})^{mt}

4320=P(1+\frac{0.05}{12})^{36}

4320=P\times 1.1614

P = $3719.41

So john must invest $3719.4

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Suppose the National Bureau of Economic Research (NBER) comes out with a report suggesting that the economy will soon dip into r
egoroff_w [7]

Levels of cyclical unemployment will rise.

Unanswered levels of frictional unemployment may rise as people looking for jobs will find it harder to get new jobs.

Unanswered levels of structural unemployment are likely to rise as businesses look for specific types of workers.

Answer: Options A, B and G.

<u>Explanation:</u>

In Economics, a recession is a business cycle constriction when there is a general decrease in monetary action. Downturns by and large happen when there is a far reaching drop in spending.

A recession happens when there are at least two back to back quarters of negative monetary development, which means GDP development contracts during a downturn. As organizations battle with less money and income, they first attempt to lessen their expenses by bringing compensation or stopping down to procure new specialists, which can stop business development.

6 0
3 years ago
According to the factor price equalization theorem, if country B is labor abundant, then if country B initiates trade with count
yKpoI14uk [10]

Answer:

wages should rise and rents should fall in A

Explanation:

The Factor Price Equalisation Theory states that when two countries trade, the price of identical factors of production will tend to be equalised across the countries. Factors of production include wage rate and rent of capital.

So if a country that is labour abundant trades with another country A there will be tendency for exportation of the excess labour of country B to country A.

As a result country A will become more labour intensive and wages of workers will rise since focus is more on use of labour.

However since less capital will now be used the money spent on renting capital will reduce.

6 0
3 years ago
Match the following empires:
uranmaximum [27]

Answer:

1 ----> Matches with ----->C

2 ----> Matches with ----->D

3  ----> Matches with ----->B

4 ----> Matches with ----->A

Explanation:

This question is very easy and interesting. In this question, we just need to match the specific empires with the description given in the question. So, Let's Start.

1. The first description matches with the Dutch Empire. (C)

2. The second description matches with obviously the French Empire (D)

3. The third description matches with the English Empire. (B)

Lastly,

4. The forth description clearly matches with the Spanish Empire. (A)

So, Correct Combination will be:

1 ----> Matches with ----->C

2 ----> Matches with ----->D

3  ----> Matches with ----->B

4 ----> Matches with ----->A

8 0
3 years ago
Parts of the retail industry in which a small number of businesses control a large portion of the market represent __________.
solniwko [45]

The answer to your question is "Oligopolies."

An oligopoly is a market form where a market is controlled by a few large sellers or businesses.  The type of market is going to effect the price in one of two ways.  The first possibility is that the few businesses will work together, or collude, in order to establish higher than normal prices.  The second possibility is that there will be fierce competition between the few sellers, which will result in a high level of competition and lower prices.

8 0
3 years ago
Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts receivable were $25,0
Dahasolnce [82]

Answer:

b. $100,000

Explanation:

Provided information

Beginning balance of account receivable = $25,000

Collection from customers = $100,000

Ending balance of account receivable = $15,000

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8 0
3 years ago
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