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SVEN [57.7K]
3 years ago
15

You have invested $1,000 in an account that promises APY of 3 percent per year. Assuming you leave the original investment and a

ll earned interest in the account, and ignoring taxes, how long will it take to double your money?
Business
1 answer:
ioda3 years ago
4 0

Answer: The answer is<u> 24 years.</u>

<u />

Explanation: For this exercise we can use the rule of 72, this rule is by which investors can estimate how many years it will take for an initial investment to double. If you know the rate of return, you can know the time needed and if you know the time, you can calculate approximately the rate of return.

RULE OF 72 = APY% x NUMBER OF YEARS = 72

If we apply the formula it results =

3 × n = 72

n = \frac{72}{3}

<u>n = 24.</u>

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<h3>Which technique of inventory valuation will result in the lowest net profit?</h3>

The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.

<h3>Which method of inventory has the lowest income tax rate?</h3>

LIFO is the inventory cost flow method that yields the lowest income tax liability. A form of inventory cost flow mechanism called last-in-first-out (LIFO) operates under the presumption that the last item acquired will be the first item to be sold.

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7 0
2 years ago
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MariettaO [177]

Answer:

the degree of operating leverage is 5

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