<u>Part A</u>
<u />
<u>Answer:</u>
$207,021
<u />
<u>Explanation:</u>
The balance on the account at the end of the year 2020 is $1,000,000
The question asks us to calculate the balance on the account at the end of the year 1970, which is exactly 50 years ago.
We would simply discount the $1,000,000 by using an interest rate of 3.2%
= 
= $207,021
<u>Part B</u>
<u></u>
<u>Answer:</u>
$17,892.88
<u>Explanation:</u>
We have the value at year 1970 which is $207,021
Now to calculate the annual payment (PMT) we would plug the following values in the financial calculator,
PV = 0
N = 10
FV =207021
I/Y = 3.2
PMT = ?
PMT = $17,892.88
https://www.calculator.net/finance-calculator.html?ctype=contributeamount&ctargetamountv=207021&cyearsv=10&cstartingprinciplev=0&cinterestratev=3.2&ccontributeamountv=1000&ciadditionat1=end&printit=0&x=102&y=11
Answer:
9%
Explanation:
Real interest rate is the difference between nominal interest rate and inflation rate (i.e. real interest rate = Nominal interest rate - rate of inflation).
Therefore, Nominal interest rate would be calculated by adding real interest rate of 3% to an inflation rate of 6%, which gives 9%.
While the nominal interest rate is the actual interest rate paid to investors, the real interest rate is what gets to to the investor's pocket in terms of purchasing power.
Answer:
Suppose the Finnish government undertakes a program that relaxes immigration but only for highly skilled workers. This policy changes will result in an increase in the _population of immigrants_______, causing __increased economic performance resulting from increased supply of highly skilled labor, productivity, and GDP and not to forget increased diversity with its attendant benefits and costs_____.
Explanation:
Immigration is the movement of non-natives or citizens into a country from other countries. If the number of immigrants outnumber those emigrating, the population of the country will increase relatively. To boast population, increase diversity, and energize an economy, some countries deliberately embark on programed immigration and acceptance of highly skilled workers. As they come in, they come with their families, some will bear more children, and there will be increased relationships between the immigrants and the domiciled citizen population. The economy of the country will be revitalized since they are highly skilled workers, and there will be increased productivity and beneficial changes in the GDP. Human diversity has many attendant benefits and burdens. Whichever one that outweighs the other depends on factors prevalent in the particular country.
Answer:
$4,800,000
Explanation:
Widget corporation purchased all of its fixed assets three years ago for $6 million
These assets can be sold today for $3 million
The company receives $1.8 million in cash after liquidation of current assets
Therefore the market value of the company's total assets today can be calculated as follows
Market value = $3,000,000 + $1,800,000
= $4,800,000
Hnence the company's market value for today is $4,800,000
Answer:
paid in capital in excess of par value = $2000
and There will be a debit to Organisation expenses for $4,700
Explanation:
given data
charter authorized = 100,000 shares
common stock = $10 par value
issued = 270 shares
payment = $4,700
solution
we know here that
Paid up value of the stock = $10 per share
and here shares issue to the attorney satisfying the organisation expenses is 270 shares
so common stock = 270 shares × $10
common stock = $2700
so paid in capital in excess of par value = $2000
and There will be a debit to Organisation expenses for $4,700
