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r-ruslan [8.4K]
3 years ago
9

Assume you have $2,000 in a savings account at the beginning of the year and the price level is equal to 100. If the price level

is equal to 120 at the end of the year, the real value of your savings is closest to:________
Business
1 answer:
SVEN [57.7K]3 years ago
6 0

Answer:

$1,667.67

Explanation:

Given:

Balance in savings account at the beginning of the year = $2,000

Price level at the beginning of the year = 100

Price level at the end of the year = 120

Anything that is worth $120 in the beginning of the year is worth $100 at the end of the year.

Anything worth $1 in the beginning is worth 100/120 at the end.

So, $2,000 is worth \frac{100}{120}\times2,000 = $1,667.67 at the end of the year.

Real value of savings is close to $1,667.67.

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This is the story of Goodies Gift Shop in its third year of operation in Small Town USA. Amelia Goodies, the owner, runs the sho
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Answer:

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2. $40,000

Explanation:

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The net income is clearly stated in the Question which is the after-tax profit at $20,000.

The invested amount of Amelia is the amount she invested in Goodies Gift Shop which is illustrated as net worth ( owner's equity) at $100,000 in the Balance Sheet (Year 2).

As we have Return on Investment =  20,000/100,000 = 20%

2. We have the projected pre-tax profit = Projected margin - total overhead = 250K - 200K = $50,000

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3 0
3 years ago
Western auto inc. pays a​ $1.77 preferred dividend every quarter and will maintain this policy forever. what price should you pa
zhuklara [117]
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Price of Preferred Stock = Dividend / required return of rate - growth rate</span>
7 0
3 years ago
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,
kolezko [41]

Answer:

It cost $915,166.69

Explanation:

R=75,000

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An=R[1-(1+i)^-n] : i

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An=$ 915,166.69

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3 years ago
What is the main aims of forming a maize milling company ​
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to provide I

or produce mealie meal for the country and improve the country's production in food and farming.

3 0
2 years ago
The additional benefit of producing one more roast beef sandwich at a local deli is $2. The additional cost of producing one mor
tigry1 [53]
First, we take into account the benefit and cost given in the problem. The benefit, which is $2 is a dollar lesser compared to the cost that would be incurred should the business opt to produce one more roast beef. This, of course, tells us that an additional roast beef will just impose an additional $1 cost. Thus, the answer should be the last choice. 
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