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3 years ago

3. Consider the following price indexes: 2 pts

Business

1 answer:

sergejj [24]3 years ago

6 0

Answer:

1. Which year is likely the base year?

The base year is likely to be 2018, because it has the lower consumer price index. This is because most economies show inflation (the gradual increase of the prices overtime within an economy) rather than deflation (the gradual decrease)

2. What is the inflation rate from 2018 to 2019?

Using the consumer price index (CPI) the inflation rate formula is:

Inflation rate = CPI year 2 - CPI year 1 / CPI year 1

in this case, the year 1 is our likely base year, 2018, and year 2 is 2019.

Now, we simply plug the amounts into the formula:

Inflation rate = 255.651 - 251.107 / 251.107 = 0.018 or 1.8%

So the inflation rate from 2018 to 2019 is 1.8%, a rather low number.

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Which type of investment would be an example of an investment at point B? a US savings bond a CD a stock a savings account.

Assoli18 [71]

There are different types of investment. The type of investment would be an example of an investment at point B is a stock.

When you look at the graph, you will see a rise from point A to both B. With this, you can know that the asset class that has highest risk and also has the highest return is a stock.

There are different kinds of investments. They includes stocks, real estate, etc. The intention of the buyer is that they will increase the value of their savings/money over time.

Learn more about Stocks from

brainly.com/question/11514232

7 0

3 years ago

A young couple is planning for the education of their two children. They plan to invest the same amount of money at the end of e

laila [671]

Answer:

The couple must save $ 6,598 each year

Explanation:

Calculating the payment amount:

Cost per year = $25,000 per each child

Cost for 4 years = $25,000 × 4 = $100,000

For the oldest child, the college will begin in 16 years and the second child the college will begin in 18 years.

Calculating the amount to be deposited each year for the oldest child.

Using Microsoft Excel PMT function

Rate = 8%

N = 16

PV = 0

FV = -100000

= $3,298

Therefore, they must deposit $3,298 each year for their oldest child.

Calculating the amount to be deposited each year for the second child:

Using Microsoft Excel PMT function

Rate = 8%

N = 18

PV = 0

FV = -100000

= $2,670

Therefore, they must deposit $2,670 each year for their second child.

Total sum to be saved per year = $3,298 + $2,670 = $6,598

6 0

4 years ago

Earned value is: Group of answer choices The real budgeted value of the work that has actually been performed to date. The total

murzikaleks [220]

Answer:

The real budgeted value of the work that has actually been performed to date.

Explanation:

Earned value refers to the three primary project success metrics: cost, schedule, and performance. It measures the actual work performed against its budget and schedule. Did the actual work performed corresponds to its work budget and was it performed on time following the schedule? Earned value represents how much of the project's budget has been performed to date, both in monetary and productive terms.

4 0

3 years ago

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and

bezimeni [28]

Total= $159,552

Giving the following information:
The company has budgeted to sell 15,600 Debs in February.
Sales commissions $ 0.96*15,600= 14,976
Shipping $ 1.46 *15,600= 22,776
Executive salaries $ 60,600
Depreciation on office equipment $ 20,600
Other $ 40,600
Total= $159,552

8 0

3 years ago

The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after whi

Greeley [361]

Answer:

option b is correct

current stock price is $42.64

Explanation:

given data

dividend = $1.75

growth rate = 25% for 2 year

growth rate 1 = 6%

required return 2 = 12%

to find out

current stock price

solution

we will find here first stock price after 2 year that is

stock price = cash flow at 2 year end × ( 1+rate ) / ( rate 2 - rate1 ) ..................1

so here cash flow at 2 year end = 1.75×1.25 = 2.1875

2.1875 × 1.25 = 2.734

stock price = 2.734 × ( 1+ 0.06 ) / ( 0.12 - 0.06 )

stock price = 48.30

so stock price at 0.12 return

= cash flow at 1 year / ( 1+ rate 2 ) + cash flow at 2 year / ( 1+ rate 2 )² + stock price / ( 1+ rate 2 )²

= 2.1875 / ( 1+ 0.12 ) + 2.734 / ( 1+ 0.12 )² + 48.30 / ( 1+ 0.12 )²

= $42.64

so option b is correct

current stock price is $42.64

8 0

4 years ago