1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yawa3891 [41]
3 years ago
8

Chuck has $2,500 invested in a bank that pays 4% annually. The length of time it will take for his funds to double is closest to

:
Business
1 answer:
Arada [10]3 years ago
7 0

Answer:

The answer is 17.67 years.

Explanation:

Present value is $2,500

Future value of the money to be double of the present value. This means the future value will be $5,000($2,500 x 2)

Interest rate is 4%

Number of years or periods to reach this $5,000 is unknown. So we are looking for this.

To compute this number of periods, lets use Financial calculator.

I/Y = 4; PV= -2,500; FV= 5,000; CPT N= 17.67 years.

Therefore, the number of years to accumulate to $5,000 is 17.67 years

You might be interested in
Suppose that initially a bank has excess reserves of $800 and the reserve ratio is 30%. Then Andy deposits $1,000 of cash into h
ratelena [41]

Answer:

excess reserves after lending  = $900

so correct option is C) $900

Explanation:

given data

reserves = $800

reserve ratio = 30%

deposits = $1,000

bank lends = $600

to find out

That bank can lend an additional

solution

first we get required reserves from new deposit that is express as

required reserves  = deposit × reserve ratio      ......................1

put here value

required reserves  = $1000 × 30%

required reserves  = $300

and

now excess reserves from new deposits will be  

excess reserves = deposits - required reserves     .......................2

put here value

excess reserves = $1000 - $300

excess reserves  = $700

and

total excess reserves  will be here

total excess reserves = old excess reserves + new excess reserves     ...........3

put here value

total excess reserves =  $800 + $700

total excess reserves = $1500

so that

excess reserves after lending is here express as

excess reserves after lending  = excess reserves - amount given to Molly   ..........................4

put here value

excess reserves after lending  = $1500 - $600

excess reserves after lending  = $900

so correct option is C) $900

3 0
3 years ago
(Advanced analysis) Answer the question on the basis of the following information for a mixed open economy. The letters Y, Ca, I
son4ous [18]

Answer:

The correct option is c. raise G by $30 or reduce T by $40.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

(Advanced analysis) Answer the question on the basis of the following information for a mixed open economy. The letters Y, Ca, Ig, Xn, G, and T stand for GDP, consumption, gross investment, net exports, government purchases, and net taxes respectively. Figures are in billions of dollars.

Ca = 25 + 0.75(Y - T)

Ig = Ig0 = 50

Xn = Xn0 = 10

G = G0 = 70

T = T0 = 30

Refer to the information. If government desired to raise the equilibrium GDP to $650, it could:

a. raise G by $45 or reduce T by $10.

b. raise G by $40 and reduce T by $30.

c. raise G by $30 or reduce T by $40.

d. raise both and T by $40.

e. reduce G by $30 and increase T by $40.

The explanation of the answer is now provided as follows:

Equilibrium GDP (Y) can be obtained as follows:

Y = C + G + I + Xn …………………….. (1)

Substituting all the values in the question into equation (1) and solve for Y, we have:

Y = 25 + 0.75(Y - 30) + 70 + 50 + 10

Y = 0.75Y - 22.50 + 155

Y – 0.75Y = 132.50

0.25Y = 132.50

Y = 132.50 / 0.25

Y = 530

Therefore, we have:

Y = Current equilibrium GDP = $530

Amount of increase in equilibrium GDP required = Desired equilibrium GDP – Current equilibrium GDP = 650 - 530 = 120

From the question, we have:

Ca = 25 + 0.75(Y - T) ………………. (2)

The 0.75 in equation (2) is the marginal propensity to consume (MPC). Therefore, we have:

MPC = 0.75

Expenditure multiplier = 1 / (1 - 0.75) = 4

Tax multiplier = - MPC / (1 – MPC) = -0.75 / (1 – 0.75) = -3

Amount of increase in G or government expenditure required = Amount of increase in equilibrium GDP required / Expenditure multiplier = 120 / 4 = $30

Amount of tax cut or decrease in T required = Amount of increase in equilibrium GDP required / Tax multiplier = 120 / (-3) = -$40

Therefore, correct option is c. raise G by $30 or reduce T by $40.

4 0
3 years ago
V
Dafna1 [17]

ANSWER: The correct answer is (d)-  To serve as an introduction.

Explanation: Executive summary  is a brief overview or introduction of the entire plan. It highlights the main points of the marketing plan to the company or business. Mostly people in the authority are occupied to deeply go through the plan so executive summary provides a basic understanding or overview or idea. It provides the summary of objectives and a proposed framework for growth potential.

8 0
3 years ago
Cinder Company had the following department information for the month: Total materials costs $ 60,000 Equivalent units of materi
solong [7]

Answer:

The total manufacturing cost per unit is $10.50

Explanation:

Material cost per unit = Total material cost / Equivalent units of Material cost

Material cost per unit = $60,000 / 10,000 = $6 per unit

Conversion cost per unit = Total Conversion cost / Equivalent units of conversion cost

Conversion cost per unit = $90,000 / 20,000 = $4.5 per unit

Total Manufacturing cost = $6 + $4.50 = $10.50 per unit

3 0
3 years ago
Which of the following likely has the highest degree?
sergey [27]

I would say a biomedical researcher because they need a PhD and that's one of the highest degrees you can get

8 0
3 years ago
Other questions:
  • Blueberry Baking Company produced 5,500 cakes that require 3 standard pounds per unit at a $3 standard price per pound. The comp
    15·1 answer
  • Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $56,496, invested assets of $214,000, and sal
    10·1 answer
  • Which of the following scenarios describes an offer?a.Raoul asks Wendy if she would be willing to sell her first-edition copy of
    9·1 answer
  • Choice is the largest employer in the Pacific Northwest. It is covered by numerous federal employment laws. As such, it is requi
    14·1 answer
  • Radovilsky Manufacturing Company , in Hayward, California, makes flashing lights for toys. The company operates its production f
    7·1 answer
  • Mr. X finds it hard to dine with his american colleagues as his religion prohibits the consumption of pork and alcohol. He also
    14·1 answer
  • Sadie hires a new manager. In a couple of weeks, she receives reports that the new manager often plays favorites and does not ac
    6·1 answer
  • The distribution of the amount of a customer’s purchase at a convenience store is approximately normal, with mean $15.50 and sta
    9·1 answer
  • Explain how economists use the measure “gross domestic product”
    14·1 answer
  • Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet da
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!