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2 years ago

1. All of the following are good financial savings strategies EXCEPT ___. (1 point)

1 answer:

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All of the following are good financial savings strategies EXCEPT "saving for an emergency fund, then paying off credit debt".

Option: B

Explanation:

An effective financial system can encourage savings by offering simple and convenient exposure to suitable savings tools provided at reasonable price by high-quality, reputable institutions. The emergency funds through your earning years can be extremely valuable, if you lose your job or are unable to work due to a temporary injury or after retirement, so you need cash to cover your regular bills.

Here saving for emergency fund, then paying off credit card is blunder idea, because interest rate may become huge load, and if not paid and simultaneously retirement or any tragedy take place which donot permit to continue job than there will be burden from two sides i.e paying regular bills and credit card's principal amount with interest.

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The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is Rs.500 a ride. Motorvill

larisa86 [58]

Answer:

The answer is below

Explanation:

i) The price elasticity of demand is given by the formula:

$Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{40-80}{(40+80)/2} }{\frac{600-500}{(600+500)/2} }=\frac{-2/3}{2/11} =3.667 (ignore \ the\ sign)$

Since the price elasticity of demand is greater than 1 hence it is elastic

ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.

iii)

$Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{120-80}{(120+80)/2} }{\frac{400-500}{(400+500)/2} }=\frac{0.4}{-2/9} =1.8 (ignore \ the\ sign)$

Since the price elasticity of demand is greater than 1 hence it is elastic

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2 years ago

Jenny wants a monthly retirement income of $12,000. She will retire on her birthday at age 70 with a $3,000 per month social sec

Vlada [557]

Answer:

Explanation:

Since she wants to receive the income per month, change the interest rate and duration on investment variables to monthly basis;

Out of the $12,000, find Jenny's own savings after deducting social security income & Pension benefit;

= 12,000 - 3,000 - 4,000 = $5,000

Since the 5,000 is recurring, it will be the PMT in annuity calculation.

If marginal tax rate = 28%, find the aftertax nominal rate;

Pretax nominal rate = 7.9% or 0.079

After tax nominal rate = (1-0.28) *0.079

After tax nominal rate = 0.05688 or 5.688%

Next, find the real interest rate using Fisher equation that applies the nominal rate and inflation rate

Real rate = [(1+Nominal) / (1+inflation) ] -1

=[(1+0.05688) / (1+0.026)] -1

= 1.0301 -1

= 0.0301

Real rate = 3.01%

Next, using financial calculator, enter the following inputs;

N = 95 - 70 = 25 years, but convert to months = 25*12 = 300

I/Y = 3.01% /12 = 0.2508%

PMT = 5,000

FV = 75,000*6 = 450,000

then CPT PV = $1,265,460.78

Therefore, she need to have saved $1,265,460.78

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2 years ago

On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay interest on June 30 and Decembe

My name is Ann [436]

Answer:

1) CR Cash/Bank $51,229.35 , DR Bonds Receivable Account $50,000 and DR Premium on Bond Payable Account.

(2) Please see attached for Investment Interest Income Amortization Schedule

(3) Recording of Interest Received

June 30, 2019

CR Income statement (Interest Received) -$3,000, CR Premium on Bond Receivable $250

December 31, 2021

CR Income Statement (Interest Received) -$2915.44

Explanation:

(1) CR Cash/Bank $51,229.35 , DR Bonds Receivable Account $50,000 and DR Premium on Bond Payable Account.

(2) Please see attached for Investment Interest Income Amortization Schedule

(3) Recording of Interest Received

June 30, 2019

CR Income statement (Interest Received) -$3,000, CR Premium on Bond Receivable $250

December 31, 2021

CR Income Statement (Interest Received) -$2915.44

Download xlsx

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2 years ago

"Which of the following is a support activity in a firm's value chain? A) Inbound logistics B) Operations C) Sales and marketing

Pepsi [2]

Answer:

The technology is a support activity in a firm's value chain.

Explanation:

Value chain analysis means the analysis which adds the value to the organization. It can be categorized in two activities - primary activities and support activities. This value chain analysis is propounded by Porter.

The primary activities includes inbound & outbound logistics, operations, Marketing & sales and service whereas support activities includes firm infrastructure, human resource management, technology , and procurement.

Thus, the technology is a support activity in a firm's value chain.

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2 years ago

Which of the following describes the effect of the business cycle on the inflation rate and the unemployment rate? A. The unempl

Pani-rosa [81]

Answer:

The correct answer are option D for both questions.

Explanation:

Recessions is characterized with decrease in consumer and investment spending. During recessions there is a decline in inflation rate and the unemployment rate increases.

While during expansion, there is a boost in economy. So, with increase in investment and production, the unemployment rate falls. There is a rise in inflation rate as well.

Though even in the stages of recovery, the unemployment rate continues to increase because some firms are pessimistic and are operating below their capacity. Also, the rate of growth of labor force is higher than rate of employment growth, which leads to increase in unemployment.

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2 years ago

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