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faltersainse [42]
3 years ago
9

Suppose that you were born in 1999. Also, suppose that your mother received a $100 baby shower gift at your birth. How much woul

d it cost to buy a similar amount of goods and services in 2017, given that the CPI was 166.6 in 1999 and 245.1 in 2017?
Business
1 answer:
nadezda [96]3 years ago
4 0

Answer:

= $147.12

Explanation:

First, we determine the amount received by Mother in 199 9= $100

Based on this,

The Consumer Price Index in 1999 = 166.6

The Consumer Price Index in 2017 = 245.1

We then calculate the amount it would cost in 2017 to buy similar goods bought by mother in 1999

= Value in 2017 = Amount received in 1999 x (2017 CPI / 1999 CPI)

= $100 x (245.1/166.6)

=  $100 x 1.471

= $147.12

This means that the baby shower gift received at $100 in 1999 will cost  $147.12 to buy in 2017.

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Many academic institutions offer a sabbatical policy. Every seventh year a professor is given a year free of teaching and other
Fittoniya [83]

Answer:

$ 127,773.36

Explanation:

The professor will be in sabbatical  in years 7,  14, 21, 28, 35 and 42

In each of these years, he receives full pay amounting to=50,000

The PV of the sabbatical full pay

= \frac{50,000}{1.04^7} + \frac{50,000}{1.04^14} + \frac{50,000}{1.04^21} + \frac{50,000}{1.04^28} + \frac{50,000}{1.04^35} +\frac{50,000}{1.04^42} = 84,101.22

=50,000/(1+4%)^7+ 50,000/(1+4%)^14+ 50,000/(1+4%)^21+ 50,000/(1+4%)^28+50,000

/(1+4%)^35+ 50,000/(1+4%)^42

==50,000/(1+4%)^7+ 50,000/(1+4%)^14+ 50,000/(1+4%)^21+ 50,000/(1+4%)^28+50,000

/(1+4%)^35+ 50,000/(1+4%)^42

= \frac{50,000}{1.316} + \frac{50,000}{1.732} + \frac{50,000}{2.279}  +\frac{50,000}{2.999} +\frac{50,000}{3.946} + \frac{50,000}{5.193}

=37,993.92 + 28,868.36 + 21,939.45 + 16,672.22 + 12,671.06 + 9,628.35

=  $ 127,773.36

Thus, at an interest rate of 4%, the present value of all the sabbatical earnings amount to $ 127,773.36

6 0
3 years ago
Which of the following is NOT a common feature of a
Lyrx [107]

Answer:

Investment trading

Explanation:

Financial institutions' core business is to sell loans. They accept deposits from customers and use those deposits to create loans to firms and individuals. Financial institutions are intermediaries of credit; they connect the demand and the suppliers of credit. Direct deposits are a way of depositing money while ATM's and debits card gives customers access to their deposits.

Investment trading is a service offered by stock exchange markets through stockbrokers and investment banks.

I

6 0
3 years ago
Employees at a pharmaceutical company make large profits by buying shares of the firm when the trials of a drug begin but before
lesantik [10]

Answer:

The correct answer is letter "C": Strong form.

Explanation:

The Efficient Market Hypothesis (EMH) is the theory that beating the market is impossible because current stock prices reflect all the information investors need to trade the markets. Technical and fundamental analysis remain useless in trying to predict future price action.

The EMH could be classified as the <em>Weak, Strong, </em>and <em>Semi-Strong EMH</em>. The strong form of the EMH establishes that insider information and public information are already in the current stock price, then, there is no special data that could provide an advantage to an investor to take advantage of the market.

In such a case,<em> the strong form of the EMH is opposed to the idea given in the example since it is proposing insider information gives employees an advantage to make large profits before the information of trial drugs is spread among the public.</em>

4 0
3 years ago
"When the price of a product rises, consumers purchase less of that product." This statement describes:
IRINA_888 [86]

Answer:

ummmmm hold

Explanation:

7 0
3 years ago
Read 2 more answers
The xyz company has two offices, one in chicago, and a brand new office in pittsburgh. to connect the two offices, they will nee
ikadub [295]
<span>You would want to get a broadband internet based phone that's based off a Linksys modem system. A multiple line phone per employee/contractor with voice mail capacities would be a must. For contracted employees (those who work for the business, but are not office-based) need mobile cell phones with the internet, email, and group and individual capabilities so they can be reached easily.</span>
7 0
3 years ago
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