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fgiga [73]
3 years ago
10

When a price, wage, or interest rate is adjusted automatically with inflation, it is said to be __________.

Business
1 answer:
Darina [25.2K]3 years ago
8 0

Answer:

Indexed.

Explanation:

Indexing is the adjustment of amounts of money to an index figure. This often involves adjustment to inflation so that the real amount remains the same, that is, it continues to represent the same average purchasing power. For example, inflation is measured by the consumer price index. This is a weighted average price index of the average household.  Indexation can, for example, apply to wages, pensions, social security, housing rent, alimony, tax credits and fines.

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You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of .4 percent per month, how much wil
alexdok [17]

Answer:

PV= $8,447

Explanation:

Giving the following information:

Future value= $13,000

Number of months= 9*12= 108

Interest rate= 0.4/100= 0.004 compounded montlhy

To calculate the initial investment required, we need to use the following formula:

PV= FV/(1+i)^n

PV= 13,000/(1.004^108)

PV= $8,447

7 0
3 years ago
The graph represents the supply and demand curve for chocolates in the economy. Identify the price and quantity at which there w
Zielflug [23.3K]

Answer:

Equilibrium Price - 3

Equilibrium Quantity - 3

Explanation:

The price at which there will be equilibrium in the chocolate market is 3 units while the corresponding quantity is also 3 units.

<u>The equilibrium price and quantity represents the price and quantity where the demand for a product is equal to the supply for the same product respectively.</u>

<em>In the graph, the point of intersection of the demand and the supply curve represents the equilibrium point. At this point, the price on the Y axis is 3 units while the corresponding quantity on the X axis is also 3 units.</em>

3 0
3 years ago
Question 3 of 10
kifflom [539]
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3 years ago
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Your annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Opt
kotegsom [21]

Answer:

Option 1 is more convenient.

Explanation:

Giving the following information:

The annual salary is $100,000. You are offered two options for a severance package. Option 1 pays you 6 months' salary now. Option 2 pays you and your heirs $6,000 per year forever

The present value of option 1 is:

PV= 6*100,000= $600,000

To calculate the present value of option 2 we need to use the present value formula of a perpetual annuity:

PV= Cash flow/i

PV= 6,000/0.11= $54,545

There is no doubt that option 1 is better.

7 0
3 years ago
Assuming the use of a 365-day year, Barry Bees, Inc.'s Cost of Goods Sold equals $10,000. A. Its Beginning Inventory was $800, a
Ket [755]

Answer:

The answer is 36.5 days

Explanation:

Average days to sell inventory is the number of days it takes a firm or business to sell its inventories in a year.

(Average inventory/cost of goods sold) x 365 days

Average inventory = ($800 + $1,200) ÷ 2

=$1,000

Therefore, Barry Bee's average days to sell inventory is ($1,000 ÷ $10,000) x 365days

=36.5 days

7 0
3 years ago
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