Answer:
$1000
$1010
Explanation:
The formula for determining simple interest = principal x time x interest rate
The formula for determining compound interest = future value - amount invested
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
1000 X 0.01 X 1 = $10
Given the figures in the question, the simple interest each year would be $10 based on $1000
But the compound interest in year 2 = 1000 x (1.01)^2 = 1020.10
1020.10 - 1000 = 20.1
compound interest in year 2 = 20.1 - 10 = 10.1
or
1010 x 0.01 x 1 = 10.1
Answer:
C. consumer price index
Explanation:
Inflation is the general increase in prices in a country in a period. In the US, inflation is measured using the consumer price index, CPI. The CPI is a measure of the weighted average price of selected goods and services that represent the general consumption in the economy. The weighted average price at a particular time is compared to the weighted average price at the beginning of the period.
The weighted average price for the basket is compared to the previous period to determine the rate at which prices are increasing. A high rate of price increment signifies a high rate of inflation. The Government sets a target rate of inflation for the economy. It employs fiscal and monetary policies to keep inflation within acceptable levels.
Answer:
Charging Sales tax
Explanation:
Merchandising business is the kind of business, that buys or purchases the finished products and then resells them to the customers.
So, the merchandising business could act as a collection agency for the government through charging the sales tax. There is need to remit the government after collecting the tax and when it is done, the business will decrease the cash and the sales tax liability.
And it is the lability to the government until it is remitted by the business.
