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
____ [38]
3 years ago
5

In 15 years from now, you make a deposit worth $31,000 in constant dollars. What is the actual dollar amount of this deposit? As

sume the inflation-free interest rate i' is 4% and the market interest rate is 8%.
Business
1 answer:
svp [43]3 years ago
5 0

Answer:

$17,214 and $54,606

Explanation:

The computation is shown below:

For 4% inflation free risk rate, the dollar amount would be for 0 year

= Deposit×(1+interest rate^-number of years)

= $31,000×(1+0.04^-15)

= $17,214

For 8% market interest rate, the dollar amount would be for 15 year

= Dollar amount computed ×(1+interest rate^number of years)

= $17,214×(1+0.08^15)

= $54,606

You might be interested in
Hayden Company is considering the acquisition of a machine that costs $406,000. The machine is expected to have a useful life of
kow [346]

Answer:

c.4.2 years

Explanation:

The computation of the estimated cash payback period is given below:

As we know that

the estimated cash payback period is

= initial investment ÷ net cash flow per period

= $406,000 ÷ $96,000

= 4.2 years

Hence, the estimated cash payback period is 4.2 year

Therefore the option c is correct

4 0
3 years ago
What is the beginning and end of the payroll process?
Pavel [41]

Beginning: Gather employee wage information. Make sure it uses all wages, tips and compensation in the pay period.

End: Process payroll manually or through your selected system. Double-check amounts before dispersing. Print and disperse checks or stubs for direct deposit.

Hope this helps :)

7 0
3 years ago
The town of Franklin has an economy composed entirely of two equally sized specialized tire manufacturers. Both company X and co
VMariaS [17]

Answer:

b. abandon the production of airplane tires to fully specialize in the production of race car tires and then trade with Company Z for airplane tires.

Explanation:

Company X has a comparative advantage at producing race car tires

Company Z has a comparative advantage at producing airplane tires.

A country (company) has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries (companies).

A company should specialise only in the production of the good for which it has a comparative advantage.

Company X should specialise in producing race car tires and stop producing airplane tires

Company Z should specialise in producing airplane tires and stop producing race car tires

8 0
3 years ago
. Says law says? Do you agree or disagree with Jean? (Jean Baptiste Say) EXPLAIN. (hint...loanable funds market
Drupady [299]
To answer the question above as to Jean's explanation on Say's Law or The Law of Market.. I agree that "if there is a surplus of goods, there must be unmet of demand for others". Jean's explanation is more of a Capitalist style of management. 
5 0
4 years ago
Résumé search programs often search for _____. a. nouns b. verbs c. adjectives d. participles
photoshop1234 [79]

Answer:

Résumé search programs often search for _____.

a.

nouns

b.

verbs

c.

adjectives

d.

participles

Explanation:

the answer is a. noun I took this test

3 0
4 years ago
Other questions:
  • Dairy Farm enters into a contract with EZ Serve Ice Cream Company to supply milk. Later, Dairy decides that it is no longer adva
    9·1 answer
  • Shortage is _____.
    12·2 answers
  • To find out how common domestic violence is in the general population, a questionnaire was sent out to a random sample of anonym
    11·1 answer
  • Dynamic explosives is trying to decide whether or not to launch a new product nationally. this represents a(n) ________________
    13·1 answer
  • Which of the following are microeconomic issues?Which are macroeconomic issues?
    14·1 answer
  • In your research project on tourism, you must collect data before the tourist season ends because the project requires interview
    11·2 answers
  • You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q)
    12·1 answer
  • Goldin Corporation currently pays its salesperson a flat salary of $5,000 per month and is considering paying him $20 per unit i
    6·1 answer
  • Which of the following characteristics of prospective financial statements would require the practitioner to include in a report
    7·1 answer
  • What is the function of the Federal Reserve (Fed)?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!