1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yuliya22 [10]
3 years ago
6

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 $1,667. $1,880. $2,120. $2,400.
Business
1 answer:
leva [86]3 years ago
5 0

Answer:

$1,667

Explanation:

Given that,

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

Price level increases from 100 to 120

Therefore, what was worth $120 earlier, is not worth only $100.

Hence, $120 at the beginning of the year is worth = $100 at the end of the year

$1 at the beginning of the year is worth = ($100 ÷ $120) at the end of the year

Savings of $2,000 at the beginning of the year is worth:

= ($100 ÷ $120) × $2,000

= 0.833 × $2,000

= $1,667

Therefore, the real value of the savings is $1,667.

You might be interested in
Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60. If the customer pays within the discount period, what amount
madam [21]

Answer:

The amount that will be reported on the income statement as net sales is <u>$2,940</u> and as gross profit is <u>$940</u>.

Explanation:

Given:

Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60.

If the customer pays within the discount period.

Now, to find the amount reported on the income statement as net sales and as gross profit.

Cost of merchandise = $2,000.

As, merchandise sold for $3,000.

So, to get the net sales we deduct the discount:

Merchandise on terms 2/30, n/60.

3,000-2\%\ of\ 3000\\\\=3,000-\frac{2}{100}\times 3000\\\\=3,000-0.02\times 3000\\\\=3,000-60\\\\=\$2,940.

<u><em>Thus, the net sales is $2,940</em></u>.

Now, to get the gross profit we subtract cost of merchandise from net sales:

\$2,940-\$2,000\\\\=\$940.

<em><u>Hence, gross profit is $940.</u></em>

Therefore, the amount that will be reported on the income statement as net sales is $2,940 and as gross profit is $940.

7 0
3 years ago
Invested Capital Corporation provides other firms with funds to expand operations. If Invested Capital strictly complies with ex
soldi70 [24.7K]

Answer:

c. be partially met

Explanation:

Business ethics obligations is what a firm ought to do, course of action is defined and draws a line between right and wrong.

A business has an ethical obligation to make profit for its owners and also to give back to society by supporting other busines growth.

Invested Capital Corporation is fulfilling its obligations to society by providing other firms with funds to expand their operations. Their business ethics obligation is partially met because they are not also focusing on their own productivity.

5 0
3 years ago
When it comes to investing, what is the typical relationship between risk and return
Harlamova29_29 [7]
When it comes to investing, the typical relationship between the risks and returns was that the greater the potential risk, the greater the investment return an investor will get. That is why investments are very risky, and an investor must be a risk-taker to attain such success. 
8 0
2 years ago
Read 2 more answers
Which is true about the workplace of Construction workers? It can change. It is never outdoors. It can be in an existing buildin
rosijanka [135]

Answer:

#1, It can change and #3, it can be in an existing building to repair or remodel

Explanation:

Construction is not at a desk.

6 0
3 years ago
Read 2 more answers
Scout Company sold $15.000 of merchandise in September with a three-month warranty. The cost to repair defects under warranty is
chubhunter [2.5K]

Answer: debit to Product Warranty Expense for $750

Explanation: 5% of $15000 =

5 ÷ 100 × $15000 is $750.

This is an expense and so will be a debit.

8 0
2 years ago
Other questions:
  • holton is the manager at a small restaurant. What can he do to ensure the workplace offers a safe environment for employees?
    9·2 answers
  • g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling i
    9·1 answer
  • Fill in the blanks with given options:
    5·1 answer
  • Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2. Cash equals $20,000,
    6·2 answers
  • Exeter enterprise inc reported net sales of $300 million last year and generated a net income of $ 65 million. last years accoun
    9·1 answer
  • The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is term
    5·1 answer
  • Reserves are funds set aside for emergencies, such as a rush of withdrawals. true or false
    11·1 answer
  • ________ is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to s
    8·1 answer
  • Firm A is a profit-maximizing firm with a monopoly in the production of Good X. The firm sells its good for $10 each. We can con
    14·1 answer
  • An increase in aggregate demand when the economy is operating at high levels of output is likely to result in:_____.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!