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Korvikt [17]
2 years ago
5

Sixteen years ago, Alicia invested $500. Eight years ago, Travis invested $900. Today, both Alicia's and Travis' investments are

each worth $2,400. Assume that both Alicia and Travis continue to earn their respective rates of return. Which one of the following statements is correct concerning these investments?
a. Three years from today, Travis' investment will be equal to Alicia's
b. One year ago, Alicia's investment was worth same as Travis' investment.
c. Travis earns a higher rate of return than Alicia.
d. Travis has earned an average annual interest rate of 3.37 percent.
e. Alicia has earned an average annual interest rate of 6.01 percent.
Business
1 answer:
kogti [31]2 years ago
6 0

Answer:

c. Travis earns a higher rate of return than Alicia.

Explanation:

Both investments are worth $2,400.

Alicia's rate of of return is given by:

FV=PV(1+r)^n\\2,400=500*(1+r)^{16}\\1+r=\sqrt[16]{4.8}\\r=0.103

Travis' rate of return is given by:

FV=PV(1+r)^n\\2,400=900*(1+r)^{8}\\1+r=\sqrt[8]{2.66667}\\r=0.130

Alicia's investment had a rate of return of roughly 10.3% while Travis' investment had a rate of return of about 13.0%.

Therefore, the we can conclude that c. Travis earns a higher rate of return than Alicia.

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Answer: 1. 12. 2. 1.090. 3. 0.08327

Explanation:

Here is the complete question:

friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing:

1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).

The value of f is:

2. Calculate the rate of job separation (s), using an average rate per week. Enter this value into the box below. Note that if s is the rate of job separation, then the average length of employment is (1/s).

The value of s is:

3. Calculate the natural rate of unemployment (U) using the above results and enter this value in the box below.

The natural rate of unemployment (in percent) is

1. From the question, we can see that it was said that took her one full week to get a job over the last 12 week summer break. The unemployment rate will be 12.

The value of f is: 12

2. From the question, the average length of the employment is 11/12 weeks. The rate of job separation will be: s = 12weeks ÷ 11 weeks

s = 1.090

The value of s is: 1.090

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2 years ago
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The cross training is one of the type of training that is provided by an organization to their employees for developing their skills and knowledge.

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3 0
2 years ago
Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. T
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Answer:

<em>Incomplete question is "2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?"</em>

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                  ($500,000*10% + $55,000)  

                         To Allowance for Doubtful Accounts   $105,000

3.  Accounts receivable written off = Beginning balance of Allowance Account - Ending Balance of Allowance account

= $30,000 - (- $50,000)

= $30,000 + $50,000

= $80,000

4. Bad debt expense for 2021 (direct write off method) = Amount written off = $80,000

4 0
2 years ago
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