Answer:
Present value of the cash inflow= $69,086.97
Explanation:
<em>An annuity is a series of annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity.
</em>
To work out the the present value of a growing annuity, we use the formula:
PV = A/(r-g) × (1- (1+g/1+r)^n)
A- annual cash flow - 20,000
r- rate of return - 8%
g- growth rate - 3%
n- number of years- 4
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.
A/(r-g) = 20,000/(0.08-0.03)
= $400,000
(1- (1+g/1+r)^n)
= 1 -(1.03/1.08)^4 =0.17271
PV = A/(r-g) × (1- (1+g/1+r)^n) =400,000
× 0.17271 =69,086.97
Present value of the cash inflow = $69,086.97
The proposal was incidental to a plan to require gold certificate reserves be kept behind Federal Reserve notes. No.
In the mainstream view, one major source of instability in the macro economy is the volatility of <u>investment spending.</u>
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The definition of instability is a lack of stability or balance or a tendency toward unpredictable or erratic behavior. When you swing from one emotion to another, first feeling happy and then very sad for no reason, this is an example of emotional instability. Lack of stability; unstableness. lack of stability or steadiness. tendency to variable or unpredictable behavior. physics is a fast-growing disturbance or wave in a plasma.
Instability is the quality of being unstable. ...unpopular policies, which resulted in social discontent and political instability.
learn more about instability here
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Answer:
The answer is B. Socio-cultural
Explanation:
The socio-cultural environment refers to the beliefs, practice, customs, tradition that influences the behaviour of a people that lives in a given population.
The socio-cultural belief of the nation of Brotherton is one that believe that all the planning activities of the organisation should be the duties of manager alone and the employee are just to do as they are told.
However, the American workers participate and make contributions in the decision making process of the organisation.
Answer:
These statements are true:
A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:
For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).
C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.
Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.
For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.
D) The Federal Reserve sets the Federal funds rate.
Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.
