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3 years ago

6

magine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, wou

ld the money in the account buy more than it does today, exactly the same, or less than today?

1 answer:

Nana76 [90]3 years ago

5 0

Answer:

less than today

Explanation:

Inflation is the general increase in consumer prices in the economy. When prices are increasing, the purchasing power of a currency decreases. A 3 percent inflation rate indicates that prices of goods and services have increased by an average of 3 percent.

Interest rate expresses the rate at which money saved is growing per year. A 5 percent interest rate means that the amount in the account will increase by 5 percent.

For there to be a real increase in the money saved, the interest rate must be higher than the inflation rate. A high-interest rate compensates for the increase in prices.

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The amount of money remaining after deductions are taken out best describes which term?

telo118 [61]

The answer to this question is the term net income. A net income is the remaining money after deductions or expenses have been taken from the gross income. Net income is also known as net profit. Net income also states and calculates the total revenue that exceeds after all operational expenses and taxes been deducted.

4 0

3 years ago

An oil and gas producing company owns 42,000 acres of land in a southeastern state. It operates 630 wells which produce 18,000 b

valkas [14]

Answer:

The bid amount should be $13,200,264.

Explanation:

An oil and gas producing company owns 42,000 acres of land in a southeastern state.

It operates 630 wells which produce 18,000 barrels of oil per year and 1.7 million cubic feet of natural gas per year.

The revenue from the oil is $1,800,000 per year and for natural gas the annual revenue is $581,000 per year.

Total Annual Revenue

= Revenue from oil + Revenue from gas

= $1,800,000 + $581,000

= $2,381,000

The bid amount should be the present worth of total annual revenue.

Present Worth of total annual revenue

= $Revenue \times\ \frac{( 1 + i )^{n} -1 }{i (1 + i)^{n} }$

= $$2,381,000\ \times\ \frac{( 1 + 0.11 )^{9} -1 }{0.11 × (1 + 0.11)^{9} }$

= $$2,381,000\ \times\ \frac{( 1.11 )^{9} -1 }{0.11 × (1.11)^{9} }$

= $$2,381,000\ \times\ \frac{2.5580 - 1 }{0.11 × 2.5580 }$

= $$2,381,000\ \times\ \frac{1.5580 }{0.281}$

= $$2,381,000\ \times\ 5.544$

= $13,200,264

7 0

3 years ago

Germaine operates a florist shop in a busy section of town in which there are many competing florists, each selling somewhat uni

trasher [3.6K]

Germaine is operating in a perfectly competitive market. As there are many competing florists, each selling somewhat unique floral arrangements, earning zero economic profits in the long run.

<h3>What is perfectly competitive market?</h3>

Perfectly competitive market is considered when all the competitors have same items and has no influence on pricing, and companies can enter and exit the market at any moment.

The market without restriction, customers have perfect or complete information, and companies are unable to set prices, according to economic theory.

Thus, the situation is of perfectly competitive market.

For more details about perfectly competitive market, click here

brainly.com/question/26028930

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4 0

2 years ago

What is the difference between a bear market and a bull market

leva [86]

Answer:

Explanation:

A bear market, refers to a stock market in which the stock and index prices are generally expected to fall, have been or are falling. In contrast, a bull market refers to a stock market where share or index prices are expected to rise, have been or are rising. These terms are figuratively derived from the two animals’ fighting tactics. A bull will charge forward and horns up thus a rise, while a bear will thrust its paws downwards, thus a decline.

3 0

3 years ago

The College Board reported the following mean scores for the three parts of the Scholastic Aptitude Test (SAT) (The World Almana

storchak [24]

Answer:

a) $P(492$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 0.949)= P(Z$

b) $P(505$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 1.898)= P(Z$

c) $P(484$

And we can use excel or the normal standard table to find this probability:

$P(-1 < Z< 1)= P(Z$

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".

Part a

Let X the random variable that represent the scores for critical reading of a population, and for this case we know the distribution for X is given by:

$X \sim N(502,100)$

Where $\mu=502$ and $\sigma=100$

We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal

$\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)$

And for this case we want this probability:

$P(502-10 < \bar X < 502+10)$

And for this case we can use the z score given by:

$z= \frac{\bar X -\mu}{\sigma_{\bar x}}$

And if we use this formula we got:

$P(492$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 0.949)= P(Z$

Part b

Let X the random variable that represent the scores for Math of a population, and for this case we know the distribution for X is given by:

$X \sim N(515,100)$

Where $\mu=515$ and $\sigma=100$

We select a sample of size n=90, since the distribution for X is normal then the distribution for the sample size is also normal

$\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{90}}=10.54)$

And for this case we want this probability:

$P(515-10 < \bar X < 515+10)$

And for this case we can use the z score given by:

$z= \frac{\bar X -\mu}{\sigma_{\bar x}}$

And if we use this formula we got:

$P(505$

And we can use excel or the normal standard table to find this probability:

$P(-0.949 < Z< 1.898)= P(Z$

Part c

Let X the random variable that represent the scores for Writing of a population, and for this case we know the distribution for X is given by:

$X \sim N(494,100)$

Where $\mu=494$ and $\sigma=100$

We select a sample of size n=100, since the distribution for X is normal then the distribution for the sample size is also normal

$\bar X \sim N(\mu, \frac{\sigma}{\sqrt{n}}=\frac{100}{\sqrt{100}}=10)$

And for this case we want this probability:

$P(494-10 < \bar X < 494+10)$

And for this case we can use the z score given by:

$z= \frac{\bar X -\mu}{\sigma_{\bar x}}$

And if we use this formula we got:

$P(484$

And we can use excel or the normal standard table to find this probability:

$P(-1 < Z< 1)= P(Z$

3 0

3 years ago