Answer:
Money Created = $50000
Explanation:
Money Multiplier is ratio of multiple times final deposits, created by initial deposits received by bank. It is determined by Legal Reserve Ratio to be kept by commercial banks, as per central banks commands.
Final Deposits / Initial Deposits = 1/LRR
Given LRR = 0.20, Money Multiplier = 1/ 0.20 = 5 here
This means Final Deposits will be 5 times Initial Deposits. So given intital deposits = 10000 , they will be 10000 x 5 i.e = $ 50000
Answer: True
It is true that foresters may work in private companies or firms and so with government agencies and offices. However, it is believed that foresters in government agencies have better benefits compared to foresters working in special and private firms.
Answer:
The student should have in his account now the sum of $ 54,365
Explanation:
In arriving at the amount above,I used the present value formula,which is:
PV=FV/(1+r)^n
FV=future value=$15000 at the beginning of each of the four years
r[=rate=7%
n=number for each payment
The table below showed the detailed calculation
Year Cash flows FV/(1+r)^n
0 15000 15000
1 15000 14,019
2 15000 13,102
3 15000 12,244
Total 54,365
Please note that the beginning of year of year 1 is the same as year 0 and so on.
Answer:
$8,000
Explanation:
Base on the scenario been described in the question, we are to use simple interest to calculate the given problem
We are given
Time = 2years
rate = 8%
Principal = $50,000
Simple interest formula is given below
I = PRT/100
Substituting the values into the question, we have
I = $50,000×8×2/100
I = $800,000/100
I = $8,000