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Talja [164]
3 years ago
8

For each of the annual inflation rates given in the following table, first determine the new price of a movie ticket, assuming i

t rises at the rate of inflation. Then enter the corresponding purchasing power of Lucia's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest movie ticket. For example, if you find that the deposit will cover 20.7 movie tickets, you would round the purchasing power down to 20 movie tickets under the assumption that Lucia will not buy seven-tenths of a movie ticket.

Business
1 answer:
Mazyrski [523]3 years ago
6 0

Answer:

  see below

Explanation:

The balance in Lucia's account is 1.05 times the original deposit, reflecting addition of 5% interest for the year.

The ticket price is the original price multiplied by (1 + inflation rate). The number of tickets that Lucia can purchase is the account balance divided by the ticket price. The quotient is rounded down to the nearest integer.

The "real interest rate" is the percentage change from the original number of tickets that could be purchased.

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According to the benefits received rule, those who receive the most benefits from the government, either directly or indirectly, should pay the most taxes in order to be fair.

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The benefits received rule dissuades double-counting charitable donations as a tax regulation.

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5 0
1 year ago
Would you use Real GDP or Nominal GDP to accurately calculate growth in 2011? Explain in three to four sentences.
lesantik [10]
You would want to use Real GDP because it looks at the inflation and deflation due to price "changes" over the years. Nominal GDP only looks at the current market of today's economy. So with this being said you only want to use Real GDP if your looking back at the economy's history, but you would look at Nominal GDP if you wanted to know the current economy status.
3 0
3 years ago
Larimer mfg. has placed all the die cast machines in one​ area, the machining centers into a different​ area, and the finished g
geniusboy [140]
Departmentalization refers to subdividing a business or organization into sections based on their function or other criteria. There are different types of departmentalization. Some types include functional, product, customer, geographic, process and divisional. Based on the scenario given above, Larimer is using functional departmentalization. 
6 0
3 years ago
These items are taken from the financial statements of Martin Corporation for 2017.
ella [17]

Answer:

Service revenue                                    68,000

Utilities expense                             2,000

Maintenance and repairs expense 1,800

Depreciation expense                    3,600

Insurance expense                         2,200

Salaries and wages expense       37,000

Total expenses                                <u>     (46,600)   </u>

Net Income                                             21,400

Retained earnings (beginning) $31,000

Net Income                                  21,400              

Dividends                                <u>   (12,000)   </u>

Ending Retained Earnings         40,400

Balance Sheet

Assets

current

Cash                           10,100

Accounts receivable  11,700

Prepaid insurance  <u>    3,500   </u>

total current              25,300

Non-Current

Equipment(net)         48,400

Total Assets:              73,700

Liabilities

Accounts payable                18,300

Salaries and wages payable 3,000

Total Liabilities                      21,300

Equity

Common stock           12,000

Retained Earings        40,400

Total Equity                 52,400

Total Liabilities + Equity        73,700

Explanation:

First, we do the income statmeent which is revenues less expenses accounts

Then, we do the retained earnings.

To the beginning balance we add up the net income and subtract the dividends.

Then, end with the blaance sheet:

first assets in order of liquity

then liabilities and last equity using the retained earnings balance we calcualted.

5 0
3 years ago
You have just received notification that you have won the $2.5 million first prize in the Centennial Lottery. However, the prize
sergeinik [125]

Answer:

PV= $35,217,78

Explanation:

Giving the following information:

Future value= $2,500,000

Number of periods= 63 years

Interest rate= 7% compounded annually

<u>To calculate the value of the prize today, we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 2,500,000 / (1.07^63)

PV= $35,217,78

8 0
3 years ago
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