Answer:
a. How much will Ruby’s IRA be worth when she needs to start withdrawing money from it when she retires?
the future value of Ruby's IRA = $10,000 x 21.725 (FV factor, 8%, 40 periods) = $217,250
b. How much money will she have to accumulate in her company’s 401(k) plan over the next 40 years in order to reach her retirement income goal?
she needs to accumulate $875,000 - $217,250 = $657,750 during the next 40 years
the annual contribution = FV / FV annuity factor = $657,750 / 259.057 (FV annuity factor, 8%, 40 periods) = $2,539.02 per year
Answer:Money market funds are mutual funds that investors typically use for relatively low-risk holdings in a portfolio. 1 These funds typically invest in short-term debt instruments, and they pay out earnings in the form of a dividend. A money market fund is not the same as a money market account at a bank or credit union.
Explanation:
...
Sometimes development aid goes toward disaster relief. For example, after the Indian Ocean tsunami of 2004, non-governmental organizations helped devastated countries to rebuild.
Based on your understanding of the chapter, which of the following statements are true of foreign aid? (Select all that apply).
A. Foreign aid is inefficient when it is given directly to an extractive government.
B. Foreign aid is efficient when it is directly used to rebuild capital and promote growth in an economy.
C. Foreign aid is efficient when it is given directly to an extractive government.
D. Foreign aid is inefficient when it is directly used to rebuild capital and promote growth in an economy.
Answer:
Option A & B is correct
Explanation:
- corruption within the government affects the proper use of aids for that which it's designated for( diversion of funds to personal accounts of government officials in charge e.g mobutu of Zaire.)
Foreign aid is a powerful tool which can be used to mediate failure of market mechanism and boost economic growth by facilitating productive investment in key areas of the economy.
1.5 units of good x can the consumer purchase if her income is $15 and she spends it entirely on purchasing good x.
A budget constraint in economics refers to all the combos of goods and services that a consumer can buy given current prices and his or her given income.
Consumer theory examines the parameters of consumer choices using the theories of a budget constraint and a preferential map.
In the two-good case, both theories have a ready graphical representation.
Consumers can only buy as much as their income allows, so they are limited by their budget.
The equation of budget constraint is:
*x + 
*y = m
where is the price of good X,
is the price of good Y,
x is units of good X,
y is units of goods Y,
and m is income.
m = 15
Px = 10
Py = 5
15 = 10x + 5y
Since she spends it entirely on purchasing good x
15 = 10x + 0
15 = 10x
x = 15/10
= 1.5
Hence, The consumer can purchase an amount of Good X = 1.5.
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