Natalie wants to make a 25% profit on a $70000 sale. That would be:
(125 ÷ 100) × 70000 = $87500.
Natalie wants to make $87500. But the agent would charge a 6% for the sale, Natalie will add a 6% to the $87500, that would be:
(106 ÷ 100) * 87500 = $92750.
On this $92750, there's a closing cost of $1200,
Add $92750 + $1200 = $93950.
$93950 to the nearest hundred will be $94000.
Natalie should make the final sale price $94000 in order to make a profit of %25.
Answer:
a debt of $ 27,000 is left in the cash account = -27,000
Explanation:
because when you add all the nos the debts become <em>negative numbers </em>
and when we add them we get a debt of 27,000 which is equal to -27,000
Answer:
$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3
Explanation:
let Z be the annual minimum cash flow
The internal rate of approach can be used here, in other words, the rate of return at which capital outlay of $2000 is equal present values of future cash flows
In year 1, present value of cash =X/discount factor
year 1 PV=Z/(1+i)^1
year 2 PV=Z/(1+i)^2
year 3=Z/(1+i)^3
Hence,
$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3
Solving for Z above would give the minimum annual cash flow that must be generated for the computer to worth the purchase
Assuming i, interest rate on financing is 12%=0.12
Z can be computed thus:
$2000=Z(1/(1+0.12)^1+(1/(1+0.12)^2+(1+0.12)^3)
$2000=Z*3.09497902
Z=$2000/3.09497902
Z=$646.21
Answer:
Money Multiplier= 1/ reserve ratio = 1/10% = 10
Change in Money Supply = Change in Reserves * Money Multiplier
= 1,000 * 10 = 10,000
So, option d is the correct option.
Answer:
what is the money multiplier?
what is the total change in the M1 Money Supply?
- Just because a client deposits money into a bank it does not increase M1, it just changes its composition. The immediate effect of the deposit in the total money supply is nothing. If the bank loans the money to other clients ($581 in total loans are possible), and other clients deposit the funds in the same bank or other banks, then the money supply could increase up to $3,416.
what is the minimum amount by which the money supply will increase?
- If the bank loans the disposable funds, the money supply should increase by $581 at least.
Explanation:
The bank's required reserve ratio = reserves / deposits = $493 / $2,900 = 0.17 or 17%.
the money multiplier = 1 / required reserve ratio = 1 / 0.17 = 5.88
if a client deposits $700, the minimum amount by which the money supply will increase = $700 x (1 - required reserve) = $700 x (1 - 0.17) = $700 x 0.83 = $581
the maximum amount by which the money supply could increase = ($700 x 5.88) - $700 = $4,116 - $700 = $3,416
