Answer:
The lump sum invested was $2,730.30.
Explanation:
Giving the following information:
Invested one lump sum 17 years ago at 4.25 percent interest. Today, the proceeds totaled $5,539.92.
We need to calculate the original amount that this person invested 17 years ago. We will use the following formula:
PV= FV/(1+i)^n
PV= 5,539.92/ (1.0425)^17
PV= $2,730.30
Answer:
d. Emeralda from " Clean as a Whilte Co." runs over patty Pedestrain in the dealership's parking lot.
Explanation:
Liability is the degree to which a person is responsible for injury that happens to another party in a lawsuit. Peter owns an auto dealership. Peter hires Cara as a receptionist, Ben as a salesperson, Stacy as a mechanic, and "Clean as a Whistle Co." as cleaners.
Peter will be least liable if Emralda from "Clean as a Whistle Co." runs over Patty I'm the dealership's parking lot.
This is because Peter hired the company as a seperate entity from the cleaning company employees. The conduct of employees from the cleaning company is responsibility of "Clean as a Whistle Co."
Answer:
$28.125
Explanation:
Dividend D1= $2
(Dividend is given at the end of 1 year)
Growth g= 4% or 0.04
Required Return r = 12% or 0.12
Step1- Share price of company A today
As per Dividend Growth Model
Share price =Expected dividend/(required return - growth rate)
S0 = Do(1+g) / (r-g)
S0 = D1/(r-g)
S0 = 2/(0.12-0.04)
S0 = $25
Therefore share price of company A today for given details will be $25
Step2 - Expected dividend at the end of 3 years
D4=D0(1+g)^4
( as we already have D1 which is one time growth multiplied, therefore to find dividend at the end of 3rd year we will multiply 1 Less growth multiplier to D1)
D4= D1(1+g)^3
D4 = 2(1+0.04)^3
D4 = $2.25
Step3 - Share price of company A in 3 year
Share price =Expected dividend/(required return - growth rate)
S3 = D4/(r-g)
S3 = 2.25/(0.12-0.04)
S3 = $28.125
Therefore share price of company A in 3 years for given details will be $28.125
Answer:
Core PCE deflator inflation rate;
the Output gap
Explanation:
Goals of Monetary Policy
There are several goals of monetary policy. They includes maximum employment, stable prices, and moderate long-term interest rates. Usually in the long run, the above goals works in harmony and empower each other, but in the short run, they might be in conflict. The main goal of this policy is price stability as it is the source of maximum employment and moderate long-term interest rates.
The Fed has two possible instruments:they includes;
1. Monetary base
2. Federal funds rate
Output Gap
When this gap is positive, an inflationary gap, the inflation rate increases drastically or accelerate. This will make the Fed to consider raising the federal funds rate. It is said that If the output gap is negative, a recessionary gap, inflation might ease. Thereby making the Fed to consider lowering the federal funds
The Stables Prices Goal
The Fed do put close attention to the CPI removing fuel and food which is the core CPI. The rate of increase in the core CPI is simply termed core inflation rate. The Fed do believes that the core inflation rate provides a better measure of the underlying inflation patterns and a better prediction of future CPI inflation.
