Answer:
C. The speed with which general prices are rising
Explanation:
Inflation measures the rate at which the general prices of goods and services are increasing in an economy. During inflation, the purchasing power of a country's currency is eroded. Inflation means a selected basket of goods will cost more this period than it did in the previous season.
The consumer price index or CPI is the most acceptable index used in determining the rate of inflation. Inflation may result from high economic growth where firms and individuals have increased incomes resulting in too much money in circulation. A moderate level of inflation is required to promote spending and sustain favorable economic growth.
Answer:
Results are below.
Explanation:
Giving the following information:
Initial investment= $1,000
Annual interest rate= 6% = 0.06
Number of periods= n
<u>To calculate the future value after "n" periods, we need to use the following formula:</u>
FV= PV*(1+i)^n
<u>For example:</u>
n= 6 years
FV= 1,000*(1.06^6)
FV= $1,418.52
Answer:
a.$75,508
Explanation:
Newham Corporation
Break Even Sales = Fixed Expenses/ 1- (Variable Expenses/ Sales)
We combined the Break Even Sales by adding the sales of the two products and the variable expenses of the two products.
Break Even Sales =$46,060/1-($10,780+$18,470/$31,000+ $44,000)
Break Even Sales =$46,060/1-(29250/75,000)
Break Even Sales =$46,060/ 1-0.39
Break Even Sales =$46,060/ 0.61
Break Even Sales = $75,508.19
Answer:
The question is not complete,find below complete questions:
If you purchased a $50 face value bond in early 2017 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2027? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2027, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value in 2037. What annual rate of return will you earn over the last 10 years?
The bond is worth $50.50 in the year 2027
The annual rate of return is 7.07%
Explanation:
The future value of the bond is given by the below formula:
FV=PV*(1+r)^N
where PV is the present of the bond of $50
r is the rate of return of 0.10 percent=0.001
N is the duration of the bond investment of 10 years
FV=50*(1+0.001
)^10
FV=$50.50
However for the face of the bond to double i.e to $100, the rate of return can be computed thus:
r=(FV/PV)^(1/N)-1
where FV=$100 (double of $50)
FV=$50.50(current value in 2027)
N=10
r=($100/$50.50)^(1/10)-1
r=0.070707543
r=7.07%