Answer:
Bill must earn at 4.89% interest rate
Explanation:
The rate that Bill must earn on the $26,000 in order to be able to accumulate $30,000 in three years' time is computed below using the future value formula:
FV=PV*(1+r)^N
FV is the future value of $30,000
PV is the principal to be invested today of $26,000
N is the duration of the investment of 3 years
r is the unknown
30,000=26000*(1+r)^3
divide both sides by 26,000
30000/26000=(1+r)^3
divide the index on both sides by 3
(30000/26000)^(1/3)=1+r
r=(30000/26000)^(1/3)-1
r=1.048856246
-1
r=0.048856246
r=4.89%
Answer and Explanation:
Before settling on a choice about lessening the inflation rate in a nation, one must realize that expansion causes an expansion in costs in all sections of economy. Additionally, the swelling rate is significant. Higher inflation rate implies there is much more cash available and the other way around. Joblessness rate in the nation is significant too. Higher joblessness rate implies lower pay rates and the other way around. As per organic market law it implies that there are
A great deal of potential workers available and low interest for them. Hence, they will be offered lower pay rates. From given definitions we can deduct what is the connection among expansion and joblessness rate and will the decline of inflation rate result with positive or negative impact on the joblessness. It is imperative to realize that higher joblessness rate accompanies low expansion rate. For lower joblessness rate, higher swelling rate must be endured.
Answer:
The company's return on investment (ROI) is <u>29.45%</u>.
Explanation:
Return on investment (ROI) is a profitability ratio that gives investors the opportunity to know the level of efficiency of each amount of dollar invested in a project at producing a profit.
Return on investment (ROI) can be computed using the following formula:
ROI = Net operating income / Average operating assets ............ (1)
Since;
Net operating income = $39,760
Average operating assets = $135,000
We therefore substitute the values into equation (1) and have:
ROI = $39,760 / $135,000 = 0.2945, or 29.45%
Therefore, the company's return on investment (ROI) is <u>29.45%</u>.
Answer:
The correct answer is C. Shows the maximum attainable combinations of two goods that may be produced with available resources.
Explanation:
The Production Possibilitiy Frontier (PPF) shows the most optimal usage of a a limited amount of resources to produce two separate goods and obtain the maximum production output possible. This theory is applicable only to the production of 2 products and demonstrates the concept of cost of opportunity. Producing more of one of the products means producing less of the other, as the resources are scarce.
