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seropon [69]
3 years ago
15

Suppose $40,000 was invested on January 1, 1980 at an annual effective interest rate of 7% in order to provide an annual (calend

ar-year) scholarship of $5,000 each year forever, the scholarships paid out each January 1.
(a) In what year can the first $5,000 scholarship be made?
(b) What smaller scholarship can be awarded the year prior to the first $5,000 scholarship?
Business
1 answer:
azamat3 years ago
8 0

Answer:

a). The first $5,000 will be paid on January 1, 1982

b). The smaller scholarship that will be received=$2,800

Explanation:

a). This can be expressed as follows;

I=PRT

where;

I=Interest amount

P=Initial value of investment

R=Annual interest rate

T=number of years the money is invested for

In our case;

I= $5,000

P=$40,000

R=7%=7/100=0.07

T=t

Replacing;

5,000=40,000×0.07×t

5,000=2,800 t

t=5,000/2,800

t=1.786 years which will be 2 years since although the first amount will be in 1.7 years, the interest has to be paid on January 1 of the next year

1980+2=1982

The first $5,000 will be paid on January 1, 1982

b). What to receive after 1 year

I=PRT

where;

P=$40,000

R=7%=7/100=0.07

T=1

I=(40,000×0.07×1)=2,800

The smaller scholarship that will be received=$2,800

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Since Mario'd boss reviews his monthly reports to see if the standards were met and that if there are errors, Mario is told he has to work an extra hour each day for the next two weeks. It is an example of Active management by exception

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Choose the best word or phrase from each drop-down menu. the federal reserve increases the money supply when it is trying to enc
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Because raising the money supply boosts the economy, the optimal sentence from the drop-down box is (i) or (a).

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To boost the economy, the Federal government expands the money supply.

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A stigmatized property is one: (a) Where physical damage makes it undesirable to buyers (b) That a historical society owns and m
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(C) Where a particular event has affected the desirability of the property

Explanation:

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Which of the following questions is an example of macroeconomics?
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Shawna wins the lottery and her income increases by 60 percent. she used to buy 10 pints of cottage cheese per month and now she
Dmitriy789 [7]

Answer: Her income elasticity of demand for cottage cheese is <em><u>0.3333</u></em> making it a <em><u>normal and necessary</u></em> good.

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