When inflationary pressure occurs, what is happening to the dollar?

You want to take a dream vacation in 3.5 years. You plan to save up $5,000 in your vacation sinking fund. Assume an interest rat

Ket [755]

<h3>Answer:</h3>

<h3>Explanation:</h3>

The formula for calculating the Monthly payments P for the sinking fund is as follows:

$P\;=\;\frac{A*i}{(1+i)^n-1}$

where,

P = Monthly payments to be made

A = Total amount to be accumulated

i = Interest rate for given time period

n = Number of time period

Assuming interest is applied at the beginning of each period.

We are given two scenarios.

<h3><u>Scenario (i) - Deposit is made during the year:</u></h3>

In this scenario, as some of the year is already passed (assume 6 months), to complete the time period of 3.5 years the interest will compound 3 times (as the 0.5 year payments can be adjusted in the remaining part of the first year and no interest is applied on it). Hence, the interest will be applied 3 times.

$\therefore P_{(i)}\;=\;\frac{5000*0.08}{(1+0.08)^3-1}\\\\P_{(i)}\;=\;\frac{400}{0.2597}\\\\P_{(i)}\;=\;1540.1676$

<h3><u>Scenario (ii) - Deposit is made at the beginning of the year:</u></h3>

For this case, the interest will be applied 4 times to complete the time period of 3.5 years for payment.

$\therefore P_{(ii)}\;=\;\frac{5000*0.08}{(1+0.08)^4-1}\\\\P_{(ii)}\;=\;\frac{400}{0.3605}\\\\P_{(ii)}\;=\;1109.6040$

3 0

3 years ago

Chhom Corporation makes a product whose direct labor standards are 0.9 hours per unit and $30 per hour. In November the company

ZanzabumX [31]

Idk this one I’m look up

4 0

3 years ago

Waterway Industries provided the following information on selected transactions during 2021: Dividends paid to preferred stockho

iren [92.7K]

Answer:

Net cash provided by financing activities $1,195,000

Explanation:

The computation of the net cash provided by financing activities are as follows:

Cash flows from financing activities

Issue bonds $2,090,000

Issue preferred stock $795,000

Less: Purchase of treasury stock -$1,180,000

Less: Dividend paid to preferred stockholders -$510,000

Net cash provided by financing activities $1,195,000

4 0

3 years ago

_____ sell products at a discount but do not carry certain brands on a continuous basis and carry those brands they can buy from

bazaltina [42]

Answer:

off-price retailers

6 0

4 years ago

What are some reasons why the budget deficit and non budgeted spending have been adding more than $500 billion to the national d

bogdanovich [222]

There are numerous reasons, things like war, immigration, increased poverty, or things like unpredictable natural disasters. When a hurricane strikes and destroys entire cities and housing it has to be fixed quickly and that is spending that was not planned since you can't expect things like that. Wars often cost much more than what was planned because bad things happen and they need to be fixed. Immigration can lead to an increase in social welfare spending since not all immigrants find a job quickly and establish themselves in the society.

6 0

3 years ago