Answer:
The correct answer is C.
Explanation:
Giving the following information:
Jack would like to have $1.25M to retire in 35 years. He will get $375,000 the day he retires.
He can deposit funds in a money market account which earns 6.5% interest per year, and he would like to make yearly deposits.
<u>First, we need to calculate the final value required:</u>
FV= 1,250,000 - 375,000= $875,000
Now, using the following variation of the final value formula, we can calculate the yearly deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
FV= 875,000
n= 35
i= 0.065
A= (875,000*0.065) / [(1.065^35) - 1]= $7,054.48
The annual deposit is $7,054.48.
Answer:
B. Banks would make fewer loans
Explanation:
The discount rate is the interest rate that commercial banks pay to the Federal Reserve for loans received. Banks usually borrow to cater to their short-term cash-flow requirements. The discount rate is higher than the inter bank rate or the fed funds rate(the rate that banks charge each other for loans).
An increase in the discount rate causes the inter bank rate to rise (the Fed controls both rates). It means commercial banks are borrowing money from the Fed and each other at a higher interest rate. Consequently, commercial banks charge a higher interest rate for loans advanced to customers. An increase in interest rates at the banks discourages customers from borrowing.
5) your own Business
The benefits of starting a business include being your own <u>boss</u>. You will have more <u>freedom</u> and <u>independence</u> as a self-employed individual than as an employee, and you will not have to adhere to a typical 9 to 5 schedule from Monday through Friday. Having your own business means you can work when it is convenient for you—whether that be at 12 p.m. or 12 a.m.
You will be able to be more productive as a result. You can also work as a digital rambler wherever you want, so if you enjoy traveling, you could spend time living the digital rambler lifestyle if you are interested.
The answer
cultural diffusion
