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
nadezda [96]
3 years ago
15

Sally has invested $10,000 now and wants to earn a real interest rate of 10% per year. Assume that the inflation rate is 7% per

year. Determine the future worth Sally has to receive 10 years from now? a) $62, 338 b) Unknown c) $42, 338 d) $52, 338
Business
1 answer:
hodyreva [135]3 years ago
4 0

Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

<u>The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:</u>

Nominal rate of return= 0.1 + 0.07= 17%

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the n<u>ominal valu</u>e received after ten years.

<u>If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:</u>

<u></u>

FV= 10,000*(1.1^10)

FV=$25,937.42

You might be interested in
According to the Ajzen model, the strongest predictor of an employee’s behavior is (are):
Ghella [55]
There you go. let me know if this is right

4 0
3 years ago
Monopolistic competitors in the food industry, acting in their own self-interest, will often include a recyclable symbol on pack
anygoal [31]

Answer:

Differentiate their products

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

examples of monopolistic competition are restaurants

A monopolistic firm in the food industry acting in their own self-interest, will often include a recyclable symbol on packaging used for their product to Differentiate their products. This is meant to communicate to consumers that they are different from other firms in the industry

5 0
3 years ago
Value stocks usually exhibit ______ price-to-book ratios and ______ price-to-earnings ratios.A. low; lowB. low; highC. high; low
AysviL [449]

Answer:

A. low; low

Explanation:

Value stocks usually exhibit low price-to-book ratios and low price-to-earnings ratios

3 0
3 years ago
Cartier corporation currently sells its products for $50 per unit. the company's variable costs are $20 per unit. fixed expenses
charle [14.2K]
The answer is 40%, in which the following are given: the Variable expense is equal to 20 dollars per unit and Sales is equal to 50 dollars per unit. Use the formula Variable Expense Ratio = Variable Expenses / Sales to get the answer. 

Variable Expense Ratio = Variable Expenses / Sales
Variable Expense Ratio = 20 dollars per unit / 50 dollars per unit
Variable Expense Ratio = 40 %

The variable expense ratio is an expression of variable production costs of the company as a percentage of sales, calculated as variable expense divided by total sales. It compares a cost that alters with levels of production to the number of revenues generated by production.
8 0
4 years ago
Visit a nearby office of a company or consult the office of your school. study the various types of human resources working ther
BartSMP [9]

Explanation:

See the images for answer....

I AM NOT FROM U.S.A I AM FROM INDIA

8 0
3 years ago
Read 2 more answers
Other questions:
  • What is budget variance?
    8·1 answer
  • Explain why the joint events in a contingency table are mutually exclusive. choose the correct answer below.
    6·1 answer
  • Sometimes labor unions try to increase the demand for the product they produce. They do so because the demand for labor is deriv
    14·1 answer
  • Who presented the consumer bill of rights ?
    6·1 answer
  • Information technology has been used to improve both internaland external access and sharing of information. Three main kinds of
    10·1 answer
  • During 2021, Bramble Corp. had the following activities related to its financial operations: Carrying value of convertible prefe
    10·1 answer
  • Cashews, Inc. issued $100,000, 6% bonds at face value on January 1. The bonds pay interest semiannually on June 30 and December
    11·1 answer
  • trini started a new office job and her supervisor trained her for the position. however, her supervisor was not an adequate trai
    9·1 answer
  • At the Bourg Company, a primary ______ is to increase the monthly revenue by 10%. Bourg considers revenue targets a key part of
    8·1 answer
  • some organizations have platforms that allow employees to provide an anonymous feedback about the organ Behavior colleagues and
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!