You place $4000 into an account paying 8% compounded annually. Inflation is expected to be 2.5% during each of the next three years. What is the account's value at the end of the 3 years in Year-O (constant) dollars?
a. $2029
b. $5040
c. $5428
d. $4680

Answers

Answer 1

Answer:

FV= 4,680

Explanation:

Because it is in constant dollars at year 0, we need to take into account the effect of the inflation rate on the investment. The inflation rate decreases the value of money through time. Therefore we need to subtract the inflation rate from the interest rate.

Real interest rate= 0.08 - 0.025= 0.055

Now, future value using the following formula:

FV= PV*(1+i)^n

FV= 4,000*1.055^3

FV= 4,000*1.17

FV= 4,680


Related Questions

Alba wants to learn how to grow orchids and looks online for a podcast that discusses the correct variety, soil mixture, amount of light needed, and how often to water the plants. This is an example of content marketing because

Answers

Answer: it includes media such as videos, podcasts, webinars and blog posts.

Explanation:

Content marketing is a marketing approach that is used by businesses or organizations to give valuable information and content to the customers or a particular audience.

Content marketing includes e-books, blog posts, podcasts, educational articles, videos, and webinars. Content marketing helps in answering certain questions and also give the audience something different that they can't get somewhere else.

_______ is not considered to be a "developing" nation. A. Brazil B. India C. China D. Japan E. Mexico

Answers

Answer:

A. Brazil

Explanation:

SEE
What characters can be included in a macro name? Check all that apply.
letters
numbers
spaces
underscores
BO
symbols

Answers

Answer:

Letter

Number

Underscores

Explanation:

A Macro names should mainly comprise of alphanumeric characters which is made up of mainly letters and numbers. Underscores as well as the first key being in capital is also important.

Space isn’t necessary as it has no clearly defined function .

Answer:

1) Letters

2) Numbers

3) Underscores

Explanation:

got it right on edge

What does reconciling an account involve? checking one's financial records against the bank’s making sure a paycheck arrives on time calculating the interest owed on a savings account identifying instances of identity theft

Answers

Answer:

checking one's financial records against the bank’s

Explanation:

Reconciling an account is the regular confirmation that the reported balances are accurate. It involves checking one's account against bank balances to ensure the figures are tallying. Reconciling may require making adjustments to capture omitted transactions and charges. In practice, reconciliation involves comparing one financial records against the bank statement.

Answer:

checking one's financial records against the bank’s

Explanation:

A price tactic that requires the purchaser to bear the freight cost from the shipping point is called

Answers

Answer:

The appropriate approach is "FOB origin pricing".

Explanation:

Above mentioned pricing strategy seems to be socioeconomic pricing during which the commodities were mostly positioned cheap or discounted on the platform the manufacturer or company. Throughout this particular instance, that the farther the consumers seem to be from the retailers, the further individuals charge, so even though the export prices recommendation system with either the length goods being shipped.

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a

Answers

Answer:

debit to the Allowance account.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globally.

According to the Generally Accepted Accounting Principles (GAAP), when the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a debit to the allowance account.

What are the legal steps to take when trying to start a business
There are 3 major forms of business ownership
Sole Proprietorship
Partnership
Private Limited Liability Company
If you are to start a business, which of these form of business would you pick and what are your reasons

Answers

Answer:

partnership

Explanation:

because I don't know what I will do if i don't have a partner and you two would brainstorm so you can do it well and right

Suppose that Kathy uses her credit card to cover her expenses and pay her bills. She accumulates a balance of $12,500 at an annual interest rate of 21%. Determine the future value of the total amount she will have to repay, if she takes 6 years to pay it off. Briefly, explain how excessive credit usage can’t lead into financial burden or default on your loans. (Show your work)

Answers

Answer:

$39,230.35

Explanation:

Balance = $12,500

Rate of Interest = 21%

Duration to repay = 6 years

Future pending amount =[12,500 * (1 + 0.21)^6]

Future pending amount = 39,230.35

Thus, Kathy have to repay $39,230.35 at the end of 6 years.

Excessive credit usage would not lead to default on your loans because credit card companies offer loan when you maintain a healthy balance sheet which means you maintain a specific amount in your account always which can repay the loan easily. Keeping extra money in your account reduce the probability that customers default on loans.

Costello Corporation reported pretax book income of $502,000. During the current year, the reserve for bad debts increased by $9,000. In addition, tax depreciation exceeded book depreciation by $42,000. Finally, Costello received $4,000 of tax-exempt life insurance proceeds from the death of one of its officers. Costello's deferred income tax expense or benefit would be:________.

Answers

Answer: $11220

Explanation:

Based on the scenario in the question, first, we.have to calculate the difference in net tax which will be:

= $42000 - $9000

= $33,000

Using a tax rate of let's say 34%, Costello's deferred income tax expense would be:

= $33,000 × 34%

= $33000 × 0.34

= $11220

If a student from science class asked to borrow $200 and promised to repay you in 5 months, would you lend it to him?

Answers

Answer:

No

Explanation:

Because they most likely would not remember about the money so you're giving your money for nothing

No, If a student from science class asked to borrow $200 and promised to repay you in 5 months, you lend it to him.

What is the rule about lending money?

It is acceptable to lend money, and when you do, the borrower is obligated by law to repay the debt. If your borrower defaults on a lesser loan, you can file a small claims lawsuit against them. Although this could come across as harsh, it's crucial to comprehend it right away.

However, whether or not to lend money to someone is a personal decision that depends on various factors such as the relationship with the person, their track record of repaying debts, and one's own financial situation. It is important to carefully consider all factors before making a decision to lend money to someone.

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The total cost of producing a given level of output is:____.
a. minimized when marginal product multiplied by input price is equal for all inputs.
b. minimized when the marginal products of all inputs are equal.
c. maximized when a corner solution exists.
d. minimized when the ratio of marginal product to input price is equal for all inputs.

Answers

Answer:

The total cost of producing a given level of output is:____.

d. minimized when the ratio of marginal product to input price is equal for all inputs.

Explanation:

With the above situation, the marginal cost (input price) = the marginal revenue (marginal product).  The producer can then maximize profit if it can lower its average total cost per unit below the marginal cost for producing one additional unit of its product.  In all cost situations, it is better for the producer to have the total revenue exceeding the total costs, at all times, but more especially with increasing production.

Which career advancement tool serves as a collection of various aspects related to your professional life?
A (Blank ) is a collection of your activities, performances, awards, and experiences that relate to your professional life.

Answers

Answer:

Career portfolio

Explanation:

Which franchise model legally obligates a franchisee to replicate all aspects of the franchisor’s business?


In case of a ________ franchise, the franchisee is contractually bound to replicate all aspects of the franchisor’s business.

Answers

Answer:

Business format

Explanation:

The business format franchise model is an agreement in which the franchisor provides the franchisee with the established business that involved the name, trademark also it could be run in an independent way. The commission is to be taken by the franchisor from the franchisee in providing this service

Therefore as per the given situation, the business format would be relevant and the same is to be considered

) What is your BIG idea for a new Sharpie product, service, shopping aisle reinvention, physical location, and beyond?

How will this idea enhance the consumers creative experience
2) How does your idea give consumers of every artistic experience level access to creativity?

Answers

A new idea for a Sharpie product could be a digital service present in stores and on websites, where consumers could test the pens and their functionalities, such as colors and textures in a real way.

This idea will improve the creative experience of consumers by innovating the use of pens in the digital environment to offer an experience close to the real one, helping them to choose during the purchase process.

How to improve the consumer experience?

This is a process that requires the alignment of consumer expectations with the products and services offered. To be competitive in the market, companies must offer a value proposition to their potential consumer, through the search for relationship, benefits and innovations in their products.

Therefore, it is essential that products and services are based on total quality, from the previous process, at the moment and after the purchase, so that all stages are aligned with the desires and exceed the consumer's expectations.

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Outline one proactive step the Meanwells might take to reduce the price sensitivity of their bus service so they can increase the price charged?

Answers

Answer:

i need help with this too:( also merry early christmas

Explanation:

Watson Corporation is considering buying a machine for $25,000. Its estimated useful life is 5 years, with no salvage value. Watson anticipates annual net income after taxes of $1,500 from the new machine. What is the accounting rate of return assuming that Watson uses straight-line depreciation and that income is earned uniformly throughout each year

Answers

Answer:

12%

Explanation:

Accounting rate of return = Average net income / Average book value

Average book value = (Cost of equipment - salvage value) / 2

Average book value =  ($25,000 - 0) / 2 = $12,500

AAR = $1500 / $12,500 = 0.12 = 12%

What is it about incentive systems that makes them so attractive to leaders attempting to implement organizational change

Answers

Answer:

Incentive systems are so attractive to leaders who attempt to implement organizational change because they are powerful tools that can influence and motivate workers to embrace organizational change.

Explanation:

Incentive systems promote and encourage specific workers' actions or behavior. They are particularly used in businesses to motivate employees to adopt certain behaviors during a change transition by management.  Studies have shown that if correct incentive systems are correctly selected, implemented, and monitored, they can increase team performance by an average of 44 percent.  This improved performance makes incentive systems attractive to leaders who are implementing organizational changes.

Chang Industries has 2,200 defective units of product that already cost $18 each to produce. A salvage company will purchase the defective units as is for $7 each. Chang's production manager reports that the defects can be corrected for $10 per unit, enabling them to be sold at their regular market price of $23. The $18 per unit is a:

Answers

Answer:

The $18 per unit is a:

sunk cost.

Explanation:

Chang's cost incurred per unit of $18 is a sunk cost.  A sunk cost is a cost that has already been incurred.  It does not make a difference in a future decision. This implies the Chang may decide to correct the defect or otherwise.  What decision it takes should be based on the cost and revenue that results from the next decision, and not the past decision.

Which of the following was not an effect of the Norris LaGuardia Act?

Answers

u didn’t put like half the question luv

what is the four international payment method

Answers

Answer: Wire Transfer. An international wire transfer is the most secure and preferred method for exporters to receive payment in advance. ...
Credit Card. ...
Escrow Service. ...
Payment by Check. Payment Methods
Option 1: Credit card.
Option 2: Check.
Option 3: Wire transfer.
Option 4: Cash. To make an international payment, you must have:
the details of the person receiving the payment, including their name and address.
their International Bank Account Number (IBAN) or account number.
the name, address and Bank Identifier Code (BIC) of the bank receiving the funds.
a card reader.
Traditional payment systems include negotiable instruments such as drafts (e.g., cheques) and documentary credits such as letters of credit. ... This includes debit cards, credit cards, electronic funds transfers, direct credits, direct debits, internet banking and e-commerce payment systems.

Recovery of Previously Written Off A/R
September 10-King pays the $200 previously
written off as uncollectible.
Prepare both journal entries.​

Answers

Answer and Explanation:

The journal entries are shown below

On Sep 10

Account receivable - king $200

            To Bad debt expense $200

(Being the reinstate previously written off account receivable is recorded)

Here account receivable is debited as it increased the assets and credited the bad debt expense as it decreased the expenses

On Sep 10

Cash Dr $200

    To Account receivable - king $200

(Being cash collection is recorded)

Here the cash is debited as it increased the assets and account receivable is credited as it decreased the assets

my name is landon whats urs

Answers

My name is Tyroneeeeeeeee

Answer:

lloyd

Explanation:

If the market interest rate is 6%, a $10,000, 7%, 5-year bond, that pays interest semiannually would sell at an amount:
a. greater than face value.
b. less than face value.
c. less than the maturity value.
d. equal to face value.

Answers

Answer:

a. greater than face value

Explanation:

If the coupon rate of the bond is greater than its yield to maturity or market interest rate, the bond would sell at an amount greater than face value.

Which of the following best describes the brainstorming process?
A discard ideas that don't meet with instant approval from all group members
B focus on quantity, not quality, of ideas during the brainstorming process
C briefly evaluate each idea as soon as it's stated
D discourage wild or crazy ideas

Answers

Answer:

C briefly evaluate each idea as soon as it's stated

Explanation:

Brainstorming is a group decision making strategy. Under brainstorming, group members are encouraged to propose solutions or ideas on the agenda. The group seeks to have as many possible alternatives as possible.

Every proposal is discussed in detail. Its pros and cons are given due consideration. The proposal favored by the majority, or the one that satisfies all members, is picked as the group's decision.

The selling price of an item is $455. It is marked down by 20%, but this sale price is still marked up from a cost of $280. Find the markup from the cost to sale price.

Answers

Answer:

$84

Explanation:

Calculation to Find the markup from the cost to sale price

Using this formula

Cost to sale price markup=[Selling price-(Marked down percentage *Selling price)]- Sale price marked up

Let plug in the formula

Cost to sale price markup=[$455-(20%*$455)]-$280

Cost to sale price markup=($455-$91)-$280

Cost to sale price markup=$364-$280

Cost to sale price markup=$84

Therefore the markup from the cost to sale price will be $84

An insurance annuity offers to pay you $1,000 per quarter for 20 years. If you want to earn a rate of return of 6.5 percent, compounded quarterly, what is the most you are willing to pay as a lump sum today to obtain this annuity

Answers

Answer:

the amount that willing to pay is $44,591.11

Explanation:

The computation of the amount that willing to pay is as follows:

The Present Value of an Ordinary Annuity is

= Amount × [{1 - (1 ÷ (1 + rate of interest)^n} ÷ rate of interest]

= $1,000 × [{1 - (1 / (1 + 0.065 ÷ 4)^100} ÷ 0.065 ÷ 4]

= $44,591.11

Hence, the amount that willing to pay is $44,591.11

We simply applied the above formula so that the correct value could come

And, the same is to be considered

If the MPC is 0.80 and the government increases spending on cancer research by $15 billion.(a) What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP? What effect do you think a $50 billion increase in government spending will have on the economy?(b) Assume the MPC is 0.80 and policy makers have targeted real GDP to increase by $200 billion. By how much must taxes be reduced to achieve this goal?

Answers

Answer:

(a) What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP? What effect do you think a $50 billion increase in government spending will have on the economy?

The initial impact will be $15 billion.

The total impact should = $15 x [1 / (1 - 0.8)] = $15 x (1/0.2) = $15 x 5 = $75 billion.

If the government increased expending by $50, the total impact = $50 x 5 = $250 billion

(b) Assume the MPC is 0.80 and policy makers have targeted real GDP to increase by $200 billion. By how much must taxes be reduced to achieve this goal?

tax multiplier = 0.8 / (1 - 0.8) = 0.8 / 0.2 = 4

the government should decrease taxes by $200 / 4 = $50 billion

Tom prepares an elaborate financial plan and tries sticking to it very strictly. He is concerned about eventualities that might occur in the future and disturb his plan. What practice can help him prepare for any problems with his plan?

Answers

Answer:

Tom should review and revise his plan on a regular basis, e.g. once a year or once every 6 months. A financial plan is a budget, and like all budgets, it represents an estimate or forecast of future events. If any person was able to predict the future and be 100% right every time, they would play the lottery and earn millions every week. The future is always uncertain, and just like a company must review and revise their forecasts, so should Tom. This advice applies to all of us that try to stick to some type of financial plan.

What is persecution

Answers

Answer:

: to harass or punish in a manner designed to injure, grieve, or afflict specifically : to cause to suffer because of belief.

Explanation:

Hostility and ill treatment especially because of race or political or religious beliefs; oppression

A bond has a coupon rate of 8.6 percent and 5 years until maturity. If the yield to maturity is 8.2 percent, what is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer:

$1,015.89

Explanation:

Annual coupon = 1000*8.6% =86

Present value of annuity = Annuity[1-(1+interest rate)^-time period]/rate

= 86*[1-(1.082)^-5]/0.082

= 86*3.971751714

Present value of discounting factor=1000/1.082^5

= 674.316359

= 1000*0.674316359

Price of bond = Annual coupon*Present value of annuity factor(8.2%,5) + $1000*Present value of discounting factor(8.2%,5)

Price of bond = 86*3.971751714 + $1000*0.674316359

Price of bond = 341.570647404 + 674.316359

Price of bond = 1015.887006404

Price of bond = $1,015.89

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