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cricket20 [7]
3 years ago
7

Your parents will retire in 26 years. They currently have $220,000 saved, and they think they will need $1,950,000 at retirement

. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Business
1 answer:
Artyom0805 [142]3 years ago
6 0

Answer:

Annual rate of interest is 9%

Explanation:

The annual rate of interest is computed using the excel formula of Rate as:

=Rate(nper,pmt,pv,fv,type)

where

nper is number of years which is 26 years

Pmt is monthly payment which is 0

pv is present value which is -$220,000

fv is future value which is $1,950,000

type is 0

So, putting the values above:

=Rate(26,0,-220000,1950000,0)

=9%

Therefore, the rate of interest is 9%

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Suppose there is a large increase in the money supply in an economy that previously had low inflation. As a consequence, aggrega
hoa [83]

Answer:

It illustrates that the classical model of the price level best applies to economies with persistently high inflation.

Explanation:

When a very low inflation rate has been constant in an economy, and the money supply increases suddenly, in the short run that change will not immediately increase the inflation rate, but instead it will increase real output.

Classical economists argue that an increase in the money supply will immediately affect the inflation rate, but that theory applies mostly to economies that have a certain level of inflation. For example, for the past 12 years, European nations have been experiencing very low inflation rates, sometimes even negative rates. But during that same period, the European Central Bank has carried on a huge expansionary policy. It favored economic growth, although not as much as expected, but it didn't skyrocket inflation rate as the classical economy model predicted.

3 0
3 years ago
What leadership approach is considered the most dominant among the styles and why?
Lana71 [14]

Answer:                        

Democratic leadership approach

Explanation:

Democratic leadership, often recognized as participatory leadership, is a form of management style wherein team members play a much more participatory position in the procedure of  making business decisions.

        The option to engage is provided to all in such a framework, ideas are openly shared and conversation is promoted. Because the democratic process focuses solely on the equal rights of groups as well as the unlimited flow of information, the team leader is only there to provide advice and influence.

Such style of leadership will extend from private companies to schooling to the government to any entity. That's why it is considered to be most dominating.

4 0
3 years ago
The unemployment rate in an economy is 6 percent. The total population of the economy is 290 million, and the size of the civili
Tema [17]

Answer:

2. 9 million

Explanation:

We know that

Unemployment rate = Number of unemployed workers ÷ Civilian labor force

6% = Number of unemployed workers ÷ 150 million

So, the number of unemployed workers would be

= 150 million × 6%

= 9 million

We simply applied the unemployed rate so that the number of unemployed workers could come

All other information given is of no significance. So, ignored it

7 0
3 years ago
Aiello, Inc. had the following inventory in fiscal 2016. The company uses the LIFO method of accounting for inventory. Beginning
quester [9]

Answer:

The correct answer is B. $1,800.00

Explanation:

LIFO Perpetual table is attached.

The table shows purchases, sales and balance of each period.

As the final inventory is 120 units, we suppose the sales of the year.  Applying LIFO,  our ending inventory cost is 120 units, each one at $15

So,  total cost is $1800 (120* 15)

Download xlsx
8 0
3 years ago
ASICS What is the shoe equivalent size for US?
kozerog [31]
Here is a sizing chart from the Kohl’s website and they sell ASICS

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