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Alchen [17]
3 years ago
11

In the year 1 consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was 1

25 and the average nominal level of income was $32,000. What happened to real income from year 1 to year 2?
Business
1 answer:
aalyn [17]3 years ago
8 0

Answer:

The real income increased by $600

Explanation:

Data provided in the question:

Consumer Price Index in year 1 = 120

Consumer Price Index in year 2 = 125

Average nominal income in year 1 = $30,000

Average nominal income in year 2 = $32,000

Now,

We know

Real income = [ ( Nominal income ÷ CPI) ] × 100

Thus,

Real income in year 1 =[ ( $30,000 ÷ 120) ] × 100

= $25,000

Real income in year 2 = [ ( $32,000 ÷ 125 ) ] × 100

= $25,600

Therefore,

The change in real income from year 1 to year 2

= Real income in year 2 - Real income in year 1

= $25,600 - $25,000

= $600

The positive value means an increase

Hence,

The real income increased by $600

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To pay for investment advice from financial consultants Smith and Jones, Tony signs a check payable to "Smith or Jones." A prope
DedPeter [7]

Answer:

to Smith only, or Jones only, or Smith and Jones

Explanation:

In this specific scenario, a proper indorsement of the check would be to Smith only, or Jones only, or Smith and Jones. That is because a check needs to be as specific as possible and cannot have various options. The check needs to be made to a single specific individual and if it is for more than one individual then both need to be included as a requirement (and). Making it so that both recipients must cash the check together for it to be accepted.

6 0
3 years ago
The following cost data for the month of May were taken from the records of the Terrence Manufacturing Company: (CIA adapted) De
vlada-n [284]

Answer:

Total Manufacturing Cost  $81,100

Explanation:

The computation of the manufacturing cost incurred is shown below:

Wages of Production workers: = $30,500

Raw Material $42,000

Material handling $2,700

Factory rent $3,200

Factory Insurance $500

Depreciation on Factory Equipment $2,200

Total Manufacturing Cost  $81,100

We simply added the above items

5 0
3 years ago
Thom owes $7,200 on his credit card. The credit card carries an APR of 18.4 percent compounded monthly. If Thom makes monthly pa
DanielleElmas [232]

Answer: 45 months

Explanation:

Credit owed $7200

Monthly payment $225

APR annaully 18.4%

Monthly APR = 18.4/12 = 1.533%

SOLUTION

1st Month interest payment

1.533% x $7200 / 100 = $110.40

Principal paid (monthly payment - interest paid) = $225 - $110.40 = $114.60

Balance ( principal - principal paid) = 7200 - 114.60 = $7085.40

2nd Month interest payment

1.533% x $7085.40 / 100 = $108.64

Principal paid (monthly payment - interest paid) = $225 - $108.64 = $116.36

Balance ( principal - principal paid) = $7085.40 - $116.36 = $6969.04

By following this step up to the 45th month you get $74.74 as the monthly payment this sums up to.

Month interest payment

1.533% x $74.74 / 100 = $1.15

Principal paid (monthly payment - interest paid) = $75.88 - $1.15 = $74.74

Balance ( principal - principal paid) = $74.74 - $74.74 = $0

The payment would be completed at exactly 45months

7 0
4 years ago
Classify each of the following based on the macroeconomic definitions of saving and investment.
prohojiy [21]

Answer:

  • a. Susan purchases stock in Pherk, a pharmaceutical company.  --  Investment
  • b. Megan buys new bulldozers for her construction firm.   --  Investment
  • c. Larry purchases a certificate of deposit at his bank.   --  Saving
  • d. Raphael takes out a mortgage for a new home in Detroit.  --  Saving

Explanation:

  • The investment is a what is spent on the goods and services that are not consumed but are durable and the savings are what is left over after the national incomes are spent on the consumption of the goods and the services and an purchase of stock.
  • the buying of the construction firm is a type of investment and the purchase of a certificate of deposit and mortgage for a new home is the type of the saving which is for the future use.
6 0
4 years ago
Im trying to help answer questions but when i click the answer button I dont see a text box. (btw im on computer
vova2212 [387]

I dont know what to tell you try contacting brainly or refresh your screen

4 0
3 years ago
Read 2 more answers
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