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3 years ago

Inflation is defined as a rise in the general level of prices. When inflation occurs, the buying power of the dollar would:

Business

1 answer:

Anuta_ua [19.1K]3 years ago

5 0

Answer: the buying power of the dollar would: decrease.

Explanation:

Purchasing power means the amount of goods that can be bought with the given unit of money. The value of the dollar decreases when there is an inflation. Inflation reduces money value by raising the prices of the goods and services in the country.

Purchasing power can be compared with the salaries received 50 years ago and current salaries. Though the current salaries have increased the prices of the goods have also increased accordingly. Which can also be termed as increased cost of living.

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If $1,000 is deposited in a certain bank account and remains in the account along with any accumulated interest, the dollar amou

Naddika [18.5K]

Answer:

The rate is greater than 8%

Explanation:

Given

$\small I = 1,000 \left (\left (1+\frac{r}{100} \right )^{n}-1 \right )$

Missing part of question

$I =210$

$n =2$

Required

Is r > 1

We have:

$\small I = 1,000 \left (\left (1+\frac{r}{100} \right )^{n}-1 \right )$

Substitute values for r and I

$210 = 1,000 \left (\left (1+\frac{r}{100} \right )^{2}-1 \right )$

Divide both sides by 1000

$0.210 = \left (\left (1+\frac{r}{100} \right )^{2}-1 \right )$

Add 1 to both sides

$1.210 = (1+\frac{r}{100} \right ))^{2}$

Take square roots of both sides

$\sqrt{1.210} = 1+\frac{r}{100}$

$1.1 = 1+\frac{r}{100}$

Subtract 1 from both sides

$0.1 = \frac{r}{100}$

Multiply both sides by 100

$r = 10$

$10 > 8$

Hence, the rate is greater than 8%

7 0

3 years ago

Net sales for the year were $325,000 and cost of goods sold was $240,500 for the companyâ€™s existing products. A new product is

marin [14]

Answer:

The correct answer is B.

Explanation:

Gross profit equals net sales minus cost of sales(Net sales- Cost of Sales).

Net sales = $325,000

Cost of Sales = $240,500

Therefore we have;

$325,000 - $240,500

=$84,500

Gross profit ratio is (Gross profit/net sales) x 100%

($84,500 x $325,000) x 100%

26%

6 0

3 years ago

On March 1, Pimlico Corporation (a U.S.-based company) expects to order merchandise from a supplier in Sweden in three months. O

luda_lava [24]

Answer and Explanation:

The computation is shown below:

a. As a premium expense

= ($0.460 - $0.44) × 695,000

= $13,900

b. As a difference of 3 months spot rate and spot rate

= ($0.455 - $0.44) × 695,000

= $10,425

The first one represents the premium expense for $13,900 and the second part represents the adjustment to the net income in a positive way

7 0

3 years ago

Rider Company is in the process of preparing it closing entries. It first closes its revenue accounts by crediting the Income Su

Ksivusya [100]

Answer:

B. Debit Income summary Debit $ 23,000

Retained Earnings Credit $ 23,000

Explanation:

The closing entries are recorded to close the current year's income statement to the retained earnings account,

According to the data in the question, the revenue is closed to the credit of the income Summary of $ 68,000 and the expenses are closed to the debit of the Income Summary of $ 45,000. This leaves a credit balance of $ 23,000 in the income summary account which is closed by debiting the income summary account and crediting the retained earnings account.

Since the revenue exceeded the expenses, the result ia a profir which should increase the retained earnings account, which would be the case by a credit to the retained earnings account.

7 0

3 years ago

Zoe would like to be able to save for night courses at the local college. Which of these would be a good way for Zoe to make mor

Amanda [17]

Answer:

Spend 10% on clothing and 10% on entertainment.

Explanation:

There are some expenses that you can lower that will not radically affect your lifestyle while other expenses should be more important.

For example, you shouldn't try to save money by eating less or going to live in an ugly place where you pay a very small rent.

If you want to save money, then you should cut some costs from non essential expenses like entertainment and new clothes.

3 0

3 years ago