Why is a long term consequence of paying less than the minimum amount due on your bills

Your grandparents deposit $2,000 each year on your birthday, starting the day you are born, in an account that pays 7% interest

OverLord2011 [107]

Answer:

The money you will have is $98020.

Explanation:

It is given that grandparents deposit $2,000 each year on birthday and the account pays 7% interest compounded annually also the time is 21 years.

we will use the compound interest formula $A=P (1 + \frac{r}{100})^{t}$ .

For the first birthday the amount after 21 yr will be:

$A=2000(1+\frac{7}{100})^{21}$

Similarly for the second birthday amount after 20yr will be:

$A=2000(1+\frac{7}{100})^{20}$

likewise, the last compound will be:

$A=2000(1+\frac{7}{100})^1$

The total value of such compounding would be :

$\text {Total amount}=2000(1+\frac{7}{100})^{21}+2000(1+\frac{7}{100})^{20}...2000(1+\frac{7}{100})^{1}$

$\text {Total amount}=2000[(1+\frac{7}{100})^{21}+(1+\frac{7}{100})^{20}...(1+\frac{7}{100})^{1}]$

$\text{Total amount} \approx 2000(48.01)$

$\text{Total amount} \approx 96020$

The total amount just after your grandparents make their deposit is:

≈($96020+2000)

≈$98020

Hence, the money you will have is $98020.

4 0

3 years ago

Which of the following fiscal policy action would cause the economy to contract?

maksim [4K]

<span>This is a tricky question, because most of the answers provided are correct. For instance, by raising taxes, the government drops down the demand rates, as well as by decreasing the money supply (in that case, it also prevents economy from falling into an inflating situation). As for balancing the budget, this economical move entails decreasing the public expenditure and, therefore, contracting the demanding economical figures too. </span>

4 0

3 years ago

On March 1, 2015, Landon Company acquired real estate on which it planned to construct a small office building. The company paid

Murljashka [212]

Answer:

The amount to be reported as the cost of the land is $101,000

Explanation:

Given information

Paid cash - $90,000

Cost of property $7,600

Salvaged materials - $1,700

Attorney's fee for work concerning the land purchase - $1,100

Real estate broker's fee - $4,000

Architect's fee - $7,800

Put in driveways and a parking lot - $14,000

For computing the amount of the cost of the land, the Architect's fee and Put in driveways and a parking lot is not considered as it is not related to the land expenses. The computation is shown below

= Cash amount + Cost of property - Salvaged materials + Attorney's fee + Real estate broker's fee

= $90,000 + $7,600 - $1,700 + $1,100 + $4,000

= $101,000

Thus, the amount to be reported as the cost of the land is $101,000

4 0

4 years ago

Question 6 Professor Fader discussed "salesperson of the month." What would he say is the best way to pick a salesperson of the

Ghella [55]

Answer:

The best way for Professor Fader to pick the Salesperson of the Month is to measure the change in <u>total customer lifetime value</u> for that month delivered and give the award to the salesperson with the highest points.

Explanation:

Total Customer Lifetime Value (CLV) refers to the total value delivered by a customer over a particular period not just in the number of purchases they have made. A customer's value also includes, but is not limited to:

The formula for calculating CLV is by:

(Annual Customer Revenue X Lenth of Relationship in Years) - (Total costs of acquiring plus Total Cost of Serving the customer)

or

(ACR x LR)-(TCA+TCS) = CLV

Cheers!

6 0

3 years ago

Economic modelsa. are not useful because they omit many real-world details.b. are usually composed of diagrams and equations.c.

tino4ka555 [31]

Answer:

b. are usually composed of diagrams and equations.

Explanation:

Economic models involve huge number of factors for their study and analysis.

It encompasses the analysis of various situations in an economy. It amounts for significant influence on the changes in market and environment, in which an economy runs.

Since it is complex in nature it involves huge diagrams, metrics, equations.

As with just theory it is not easy to form the understanding of economics. Thus, it involves many pictorial representations in the form of diagrams, graphs, etc:

Therefore, correct statement is

Statement b

6 0

4 years ago