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tatuchka [14]
3 years ago
6

Katie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. She starts to s

ave $1,410 every year and plans to renovate her kitchen. She deposits the money in her savings account at the end of each year and earns 5% annual interest. Katie’s savings are an example of an annuity. If Katie decides to renovate her kitchen, how much would she have in her savings account at the end of eight years?

Business
1 answer:
LekaFEV [45]3 years ago
3 0

Answer: $13,464.23‬

Explanation:

Kate is saving a constant amount of $1,410 per year so indeed it is an annuity.

The amount she will have in the account after 8 years is the future value of the annuity after 8 years.

The formula is;

Future Value of Annuity = Annuity * (future value factor of annuity, 8 years, 5%)

= 1,410 * 9.5491

= 13,464.231‬

= $13,464.23‬

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3) Corporations use acquisition as a substitute for innovation.

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The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.

Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.  

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A beneficiary acquired stock from a decedent. The stock's fair market value at the date of the decedent's death was $500,000. Th
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Since the recognized gain is calculated by subtracting the amount paid by the person to buy the stock from the amount that he receives from the sale of stock. But in this case, the beneficiary pays zero for the stock but gets all the money after selling.

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When the demand curve shifts to the left and all else is held constant, the equilibrium price <u>falls</u> and the equilibrium quantity <u>falls</u>.

<h3>The types of chart.</h3>

In Economics, there are two main types of chart that can be used to illustrate the relationship between the total quantity of goods or services that are demanded by consumers and the total quantity of goods or services that were supplied by a manufacturer (producer) at a particular price and these include the following:

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An equilibrium can be defined as the point on a supply and demand chart where the demand curve and the supply curve intersect.

In conclusion, the equilibrium price and the equilibrium quantity would <u>fall</u> when the demand curve shifts to the left and all else is held constant.

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