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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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Financial analysts said they were surprised that despite higher inflation and shrinking profits margins, investors continue pour
kicyunya [14]

Answer:

The correct answer is (E) continued to pour money into the stock market in the belief that the American economy was

Explanation:

Inflation can affect cash flows to a greater or lesser extent, depending on their nature. Thus inflation could affect sales prices more, or costs. The entrepreneur generally fights inflation trying to reduce costs and maintain competitive prices, but he can not against generalized inflation in the economy, and consequently his cash flows could be, in real terms, increasingly lower, by the loss of the power to buy money. In this way, inflation encourages investments with rapid recovery and that require less capital investment.

8 0
3 years ago
You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an apr of 6.6 percent fo
Margaret [11]

Answer: The monthly payment will be $2007.81.

We have:

Cost of the sports coupe (PV)                     $84,500

Annual Percentage Rate (APR)                         6.6%

Loan tenure in months (n)                                    48

We can find the monthly payment by using the Present value of an annuity formula:

\mathbf{PV_{Annuity}= PMT * \left ( \frac{1-(1+r)^{-n}}{r} \right )}

Since APR is a yearly number, we need to convert it into a monthly rate.

So , r = \frac{0.066}{12} = 0.0055

Plugging values in the PV formula above we get,

\mathbf{84500 = PMT * \left ( \frac{1-(1+0.0055)^{-48}}{0.0055} \right )}

\mathbf{84500 = PMT * \left ( \frac{1-0.768529253}{0.0055} \right )}

\mathbf{84500 = PMT * \left ( \frac{0.231470747}{0.0055} \right )}

\mathbf{84500 = PMT * 42.08559028}

\mathbf{\frac{84500}{42.08559028}= PMT}

\mathbf{PMT = 2007.813112}



8 0
3 years ago
An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i
stepladder [879]

Answer:

The present value of security is $2300

Explanation:

The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,

Value of perpetuity = Cash flow / r

Value of perpetuity = 115 / 0.05

Value of perpetuity = $2300

6 0
3 years ago
Rates of operant responding are _____________ for fixed-ratio than for fixed-interval schedules; they are _____________ for vari
inn [45]

Rates of operant responding are <u>higher</u> for fixed-ratio than for fixed-interval schedules; they are <u>higher</u> for variable-ratio then for variable-interval schedules.

Rates of operant responding are higher for fixed-ratio because on the interval contingency the higher response rates observed on ratio than on matched interval reward schedules has been assigned to the differential reinforcement of longer inter-response times (IRTs).

In the fixed-ratio schedule, as the ratio increases, resistance to extinction increases. On the other hand, in the fixed-interval schedule, resistance to extinction increases as the interval lengthens in time.

Hence, rates of operant responding are higher for fixed-ratio and for variable-ratio.

To learn more about rates of operant here:

brainly.com/question/28136293

#SPJ4

4 0
2 years ago
In addition to understanding the laws affecting business in countries where their companies operate, it is most important for ma
Anna007 [38]

Answer:

D. Degree of law enforcement

Explanation:

In countries where a company operate, mostly for those operating in a foreign country, it is sacrosanct for the manager to know the laws that will affect their businesses and also the degree of law enforcement for those laws. This is important because there's a lot of variations in business laws and their degree of enforcement amongst various countries and also, rules and regulations concerning business changes from time to time. Hence, emphasis should be place by the manager on understanding the laws and the degree of the laws enforcement.

6 0
4 years ago
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