The above statement is TRUE. Compounding is the process by which the worth of an investment increases because the earnings on an investment, which is made up of the capital gains and interest earn interests as time passes.
Answer:
$25,000
Explanation:
The cash balance for Madison's Corporation is:
= beginning balance + cash collections - cash disbursements
= $35,000 + $50,000 - $80,000 = $5,000
Since Madison can borrow money in $10,000 increments, they need to borrow $20,000 to be able to meet the minimum cash balance.
So their expected ending cash balance is = $5,000 + $10,000 + $10,000 = $25,000
The answer is A, a saver.
He is putting money aside for later instead of spending it on anything else
Answer:
Explanation:
If workers are free to move between sectors, the wages in each sector will be equal. If wages are not equal, the workers will be motivated to move to sectors with higher wages and this will make a higher salary reduction, and lower wages will increase until they equal.
b. Since there are 100 workers in total,we have:
- Ls =100- Lm = 100 -4w
- Lm = 4w
Now set this equal to the labor demand for manufacturing equation and solve for w:
Substitute w =20 into the two labor demand equations, we have LM = 80 and LS i= 20
c. If the wage in manufacturing is equal to $25 then
d. There are now Ls = 50 workers employed in the service sector and the wage:
<=> 50 = 100 -4Ws
<=> Ws = 12.5
e. Wages in the manufacturing sector will remain at 25 dollars and jobs will remain at 50. If wages are reserved for the service sector is 15 dollars, then jobs in the service sector will be 40. Therefore 10 unemployed and the unemployment rate is 10%.
