$5,500 is the balance in the allowance for doubtful accounts after bad debt expense is recorded.
What are bad debts ?Bad debt, sometimes regarded as uncollectible accounts expense, is a sum of money owed to a creditor that is likely to go unpaid and for which the creditor is unwilling to take action to collect for a variety of reasons, frequently because the debtor lacks the funds to do so, for instance because a company is going bankrupt or into liquidation. Depending on accounting practices, legal considerations, and the institution's provisioning, there are many technical definitions of what a bad debt is. Bank debts in the USA that are more than 90 days past due are referred to as "problem loans."
Accounting sources indicate that as soon as a bad debt is anticipated, the entire amount should be written off to the profit and loss account or a provision for bad debts.
To solve the question :
Given,
Acc. Receivable: $110,000
Allowance for doubtful accounts = 5% of accounts receivable
The allowance for doubtful accounts balance equals 5% of accounts of accounts receivable
= 5% × $110,000.
= $5,500
Hence, $5,500 is the balance in the allowance for doubtful accounts after bad debt expense is recorded
The complete question is mentioned below :
Flyer Company:
- Cash Sales: $150,000
- Credit Sales: $450,000
- Selling and Administrative Exp: $110,000
- Sales returns and allowances: $30,000
- Gross Profit: $490,000
- Acc. Receivable: $110,000
- Sales Discount: $14,000
- Allowance for doubtful accounts: $1,200
Flyer estimates bad debt expense assuming that 5% of accounts receivable is estimated to be uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
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in 2012, nominal gdp per capita in the u.s was $49,922. in brazil, nominal gdp per capita was $12,079 the same year. calculate the ppp-adjusted gdp for brazil if the purchasing power of a given amount of dollars was 24% lower in the u.s. ppp-adjusted gdpbrazil
In 2012, nominal gdp per capita in the u.s was $49,922. The ppp - adjusted GDP for Brazil is 15893 approx.
Calculating the problem:
Purchasing power parity formula = cost of goods X in currency 1 ÷ cost of goods X in currency 2
Let currency one be in US dollars and currency two be in brazil currency.
[tex]\frac{cost of good in US}{cost of good in Brazil}[/tex] = [tex]\frac{P}{P(1 - 0.24)}[/tex]
Since , purchasing power is 24% less in US.
Let M be the arbitrary sum of US dollars and P be the cost of X in US and P" be the cost of X in Brazil quoted in same currency.
Amount of X purchase in US = [tex]\frac{M}{P}[/tex]
Amount of X purchase in brazil = [tex]\frac{M}{P'}[/tex]
According to the question :
[tex]\frac{M}{P} = ( 1- 0.24) \frac{M}{P'}[/tex]
P' = ( 1- 0.24 ) P
P' = 0.76 P
[tex]\frac{P'}{P}[/tex] = 0.76
Relative price level of Brazil = 0.76
ppp adjusted GDP brazil = [tex]\frac{12,079}{0.76}[/tex] = 15893 approx.
Why nominal GDP is consequential?Nominal GDP accounts for current request prices without factoring in deflation or affectation, meaning it tracks general changes in an frugality value over time. Real GDP factors in affectation and accounts for the overall rise in price situations, so it's more accurate for calculating a country's profitable health.
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In developing a marketing strategy, the most important thing for a retailer to consider is.
In developing a marketing strategy, the most important thing for a retailer to consider is target market.
There are a number of things that a retailer should consider when developing a marketing strategy. The most important thing for a retailer to consider is the target market. The target market is the group of consumers that the retailer wants to reach with its marketing efforts. Once the target market is identified, the retailer can then develop a marketing mix that is tailored to that group. The marketing mix is the combination of elements that the retailer uses to reach the target market. The elements of the marketing mix include product, price, promotion, and place.
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Parsons Company is planning to produce 2,800 units of product in 2017. Each unit requires 1. 20 pounds of materials at $5. 60 per pound and a half-hour of labor at $12. 00 per hour. The overhead rate is 70% of direct labor. (a) Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor $ Overhead $ (b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e. G. 2. 75. ) Standard cost $ Click if you would like to Show Work for this question: Open Show Work
The budgeted amounts for indirect costs in 2017 for the direct materials to be used is $18,816.
What are indirect costs?Costs that cannot be traced back to a specific cost object are known as indirect costs. Indirect costs are similar to direct costs in that they can be either fixed or variable. Expenses for administration, personnel, and security are examples of indirect costs. These are expenses that have nothing to do with manufacturing. While some overhead expenses may be considered indirect costs, other overhead expenses can be linked directly to a project and are thus considered direct costs. Indirect costs can be divided into two categories. The first are the indirect fixed costs, which are constant for a given project or business, such as labor transportation to the job site and construction of makeshift roads. The second category is made up of indirect costs that are repeated for a specific business, such as paying salaries or keeping records up to date.
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first link services granted 8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. the common shares have a market price of $6 per share on the grant date of the restricted stock award. 1. ignoring taxes, what is the total compensation cost pertaining to the restricted shares? 2. ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?
Total compensation cost = 8 million * 6 = 48,000,000, Effect on earnings would be that it will be considered as an expense thus the income statement would be (48,000,000/3 years)16,000,000.
The term "income" generally refers to the total sum of cash, assets, and other value transfers received over a predetermined period of time in exchange for goods or services. Taxation categories
earnings from a job.
earnings from residential property.
income from a business's or profession's gains.
capital gain earnings.
supplemental sources of income.
Typically, the term "compensation" refers to a monetary payment made to a person in return for their services. Employees work to earn their compensation at the office. It includes the employee's salary or wages, commission, and any additional benefits or incentives associated with the job.
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dew drop inn had net revenue of $117,000 in 2020 and $100,000 in 2021. its fixed assets were $400,000 at the end of 2019, $380,000 at the end of 2020, and $360,000 at the end of 2021. in which year was the fixed asset turnover ratio better? multiple choice question. 2021, because the ratio was lower. 2021, because the ratio was higher. 2020, because the ratio was lower. 2020, because the ratio was higher.
The year with the better fixed asset turnover ratio was 2020.
The fixed asset turnover ratio is calculated as:
= Revenue / Fixed assets For 2020 it was:
= 117,000 / 380,000 = 47%
In 2021 it was: = 100,000 / 360,000 = 28%
How to calculate fixed asset turnover ratio?
The efficiency with which a business may use its long-term fixed asset base (PP&E) to produce income is gauged by the fixed asset turnover ratio.
Like the total asset turnover ratio, the fixed asset turnover ratio measures how effectively a corporation uses its assets (and producing sales).
The difference is that only long-term fixed assets, such as property, plant, and equipment (PP&E), are included in the fixed asset turnover ratio formula as opposed to both current and non-current assets.
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a state university hires an outside firm to develop and maintain their human resource system. this is called
Moving one or more activities in the value chain outside of the company's control to other companies in the industry's value chain is known as strategic outsourcing.
Why do some businesses opt for methods other than vertical integration?
Outsourcing enables businesses to focus on their core competencies while simultaneously lowering labor costs and expenses. In practice, vertical integration is time-consuming and costly, and outsourcing can also give a company a competitive advantage. However, vertical integration offers many advantages.
Which kind of corporate diversification is most likely to result in improved performance?
In any case, related expansion, where the organization shares fundamental assets across its business portfolio (e.g., brand, innovation, and circulation channels), can prompt more significant levels of execution than can irrelevant broadening, because of the potential for improved productivity from utilizing shared.
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independently owned firms that take title to the merchandise they handle, are classified as either full-service or limited-service, and go by names like industrial distributor are known as .
Independently owned firms that take title to the merchandise they handle, are classified as either full-service or limited-service, and go by names like industrial distributors are known as merchant wholesalers.
What are merchant wholesalers?Merchant wholesalers are described as independent businesses that sell goods after purchasing them from the manufacturers. It is important to mention that the merchant wholesalers are the one that purchases goods and sells them to other third parties. Merchant wholesalers form an important part of indirect sales.
The merchant wholesalers are the ones that purchase the goods, store them, and handle them physically in bulk quantities. The merchant wholesalers sell the goods to the other retailers, but only in small quantities.
It can be concluded that independently owned firms that take title to the merchandise they handle, are classified as either full-service or limited-service, and go by names like industrial distributors are known as merchant wholesalers.
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Which economic measure is the monthly measure of all sales of durable and nondurable goods bought by consumers?.
Retail sales are the monthly measure of all sales of durable and nondurable goods bought by consumers.
Retail sales, which include both in-person and online transactions, are the sales of consumer items or finished products by companies to ultimate customers. Products could be perishable or durable with long-anticipated shelf life such as groceries. Furniture, food, and clothing are a few examples of consumer goods.
Most of the time, a retail salesman deals with customers. They frequently greet customers, assist them in finding the merchandise they're looking for, respond to inquiries from customers, and take payments for goods. They could also put away clothes or restock shelves.
A crucial macroeconomic indicator that tracks consumer demand for completed goods is retail sales. A study compiles consumer purchases of both durable and non-durable products. The retail sales report aids analysts and investors in assessing the economy's health and potential inflationary pressures.
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which statement is true about determining the quality of products or services? multiple choice question. consumers do not use prices to make quality judgments about services. nondiagnostic cues of the service provider cannot be used to make a determination of the quality of products or services. it is hard for consumers to assess the quality of services, due to their intangibility. prices can never be used as a quality indicator in high-risk purchases.
The statement "It is hard for consumers to assess the quality of services, due to their intangibility" is true about determining the quality of products or services.
A product's quality is determined by how well it satisfies consumer needs, accomplishes its purpose, and complies with industry standards. Businesses take into account a number of important factors when assessing a product's quality, such as whether it provides a solution to a problem, functions effectively, or serves the needs of customers.
The success of the business and the development of its reputation in target markets are both impacted by product quality, which is crucial. It can result in lower production costs, higher investment returns, and higher revenue when businesses are able to produce high-quality products that continue to satisfy customer demands.
Customers who depend on a company's meticulousness and commitment to meeting their needs value product quality as well. Consumers anticipate that products will satisfy their needs as advertised by the company when companies create products to fill needs in the market. They want items that aid in building a relationship with a brand so they can trust the services it provides. Customers can solve their problems safely and effectively with the help of high-quality products.
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if the dollar, the yen, the euro or other single currency becomes seriously overvalued, a company with a production capacity in several countries can achieve competitive advantage by:
A company with a production capacity in several countries can achieve competitive advantage by shifting production among different sites.
Production capacity is the maximum amount of product that a business can generate over a certain period of time using its the available resources. This statistic is significant because it guides a manufacturer's crucial short- and long-term company decisions. One of the simplest ways to gauge capacity is to utilise the sum of production over a specific time frame. For instance, if your plant can create 20,000 gadgets on average each week, your total capacity is 20,000 the gadgets each week.
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describe several sources of uncertainty in estimating the cost of a project as well as strategies you can employ to address uncertainty.
Several sources of uncertainty in estimating the cost of a project are Changes in prices over time. Inflation, government policy, market factors.
Methods to handle uncertainty in economy have gained much attention. Not only does uncertainty permeate every aspect of strategy, it also serves as the precise justification for its necessity. Without ambiguity, getting from point A to point B would just require a strategy.
There are many aspects of running a business that you simply have no control over, including the state of the economy, current political affairs, and the behavior of your rivals. However, in the strategy room, uncertainty is rarely taken into obvious and substantial account.
Various strategies to address uncertainty are-
Invest in solutions for agile operationsLook for where there are gaps or opportunitiesBe transparent with your workforceCreate predictability in small dosesTo know more about uncertainty refer:
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this question contains two parts; be sure to answer both. first, what is servant leadership, and what are the characteristics of a servant leader? second, assume that you are the manager of a college cafeteria. the cafeteria serves meals to students, faculty, and staff. describe four different ways in which you might use servant leadership to improve the customer service provided by your staff.
Answer:
A servant leader is dedicated to the growth of others as well as values-driven institutions that contribute to just, caring, and sustainable societies. Being a servant leader means valuing the power of teamwork as a necessary part of strengthening an organization's growth and success.
Ask the people what kind of food they want and what you could improve through surveys-listening.
Empathize with their feelings and try to see their point of view when they don't like something.
Foresee future outcomes and events. Be prepared for special events and have special meals for holidays.
Try to be self-aware of your cafeteria's strengths and weaknesses without being biased.
capital budgeting is the process of analyzing: question 6 options: cash outflows only. short-term investments. long-term investments. investments with certain outcomes only. operating revenues.
Capital budgeting is the process of analysing for Long-term investments only.
What is Capital budgeting ?Capital budgeting is the process a company undertakes to evaluate potential major projects or investments. Building a new factory or making a large investment in a foreign company are examples of projects that require a capital budget before approval or rejection.
5 Capital budgeting methods
Internal rate of return net present value Index of Profit Accounting rate of return Payment periodThe concept of the cost of capital of a company is used in capital budgeting as a possible basic discount rate applied to expected future cash flows of a proposed investment project that is considered acceptable or unacceptable.
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mr. and mrs. kain reported $80,000 agi on their joint return. the couple has four dependent children: beatrice, age 19; bruce, age 16; angie, age 11, and arnold, age 8. compute the kains' child tax credit.
$2,000 will be Mr. and Mrs. Kains' child tax credit. Hence, the correct choice of answer for this question would be option (b).
Explain child tax credit.Different nations offer parents with dependent children a tax advantage known as the child tax credit (CTC). The credit is frequently correlated with the number of dependent children a taxpayer has, as well as occasionally with their income. For instance, only families in the United States who earn less than $400,000 year are eligible to get the entire CTC. Similar to the United States, only families earning less than £42,000 a year are eligible for the tax credit in the United Kingdom. Taxpayers with kids under 17 are eligible for the child tax credit. The CTC has been $2,000 per eligible child since 2018. For single filers earning up to $200,000 and married couples filing jointly earning up to $400,000, it is fully accessible.
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The complete question is mentioned below :
Mr. and Mrs. Kain reported $80,000 AGI on their joint return. The couple has four dependent children: Beatrice, age 19; Bruce, age 16; Angie, age 11, and Arnold, age 8. Compute the Kains’ child credit.
a. $1,000
b. $2,000
c. $3,000
d. $4,000
question mode multiple choice question what is one advantage of the high/low pricing strategy? multiple choice question. retailers do not have to incur the labor costs of changing price tags and signs frequently. it allows retailers to get rid of slow-selling merchandise. it limits the need for the weekly-sale advertising used in the everyday low-pricing strategy. customers do not have to wait for items they want to go on sale.
Advantage to a excessive low pricing method is in its achievable to entice new customers to the business.
Using advertised reductions and promotions on provide with a excessive low pricing strategy, customers may additionally choose to visit your enterprise even if they have in no way finished so before.
What makes a high-low pricing approach appealing?Advantages and Disadvantages of High-Low Pricing. Almost each retail commercial enterprise selling mass-market products makes use of this pricing strategy. Promoting a product twice as more cost effective as its ordinary rate approves corporations to beautify flash sales and impulse purchases.
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https://brainly.com/question/7303679#SPJ4gunnar company gathered the following reconciling information in preparing its september bank reconciliation: cash balance per books, 9/30 $2,750 deposits in transit 200 notes receivable and interest collected by bank 630 bank charge for check printing 50 outstanding checks 1,250 nsf check 290 calculate the adjusted cash balance per books on september 30. a.$1,590. b.$3,690. c.$5,130. d.$3,040.
The September 30 adjusted cash balance according to the books is 3040. The sum of money that a business has on hand at the moment is called its cash balance.
Cash balance per books, 9/30
Add: Notes receivable and interest collected by bank
Less: Bank charge for check printing Less: NSF check
= 2,750 +630-(50)-(290)
= 3040
This cash is held in reserve to cover any unforeseen cash outflows. Without this financial safety net, companies might find themselves unable to cover their expenses.
Normally, cash balances are put toward debt repayment or given as dividends to investors. A cash balance is especially important for businesses where there is a big variance in the timing and volume of cash inflows and withdrawals.
Businesses that have a large cash balance suffer from a financial drag and frequently miss out on investment possibilities.
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whether a good is a luxury or necessity depends on the group of answer choices price of the good. preferences of the buyer. intrinsic properties of the good. scarcity of the good.
A good is a luxury or necessity depends on preference share of the buyer.
Necessity goods refer to those goods for which there is no change in demand with a chnage in the income of consumer. Example : Salt, wheat flour, medicines etc.. These goods are essential for human existence and, therefore, they occupy a higher place in the consumers' order of preference.
When the income increases the consumer buys more of luxury goods. Necessity goods cannot be postponed even if the price increases, whereas luxury goods can be postponed if its price is too high.
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which factor that influences value addresses the ease with which the property can be conveyed to another?
Location and accessibility are two factors that influence property values. They are connected, it's crucial to consider a structure location.
What is property values ?The process of formulating a value judgement for real property is known as property valuation. Contrary to corporate stocks, which are exchanged everyday and are identical, real estate transactions frequently require assessments because each property is unique and they happen seldom.
Demand and Supply for the good or service are determined by how much weight consumers currently and in the future attach to the four components of value (desire, utility, scarcity, and effective purchasing power).
Another important factor in valuation is the location. However, since real estate cannot be moved, its value is frequently affected by renovations or improvements made to the house. For example, appraisal reports are used as the foundation for mortgage loans, estate settlement, and taxation.
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the owners of a firm find that for each worker they hire, the additional output increases by the same amount. what is the shape of the firm's marginal cost curve?
The shape of the firm's marginal cost curve is increasing with a constant slope.
Marginal cost is the additional cost that must be incurred by the company to be able to make each additional unit of business product that can be produced by the company. For how to calculate marginal costs can be obtained from fixed production costs and variable costs. Variable production costs will always be included in the calculation of marginal costs. Meanwhile, fixed costs will be included in the calculation if needed to make additional products.
The main purpose of doing a marginal cost analysis is to determine at what point a company is able to achieve economies of scale, which is the value of the benefits obtained when products become more efficient. This is done in order to maximize the overall operational system. To calculate this, determine your fixed costs as well as your variable costs.
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the size, distribution, and impact of taxes on society is referred to as the . multiple choice question. apportionment budget deficit budget constraint tax burden
The size, distribution, and impact of taxes on society is referred to as the tax burden. Hence, the correct choice OF answer for this question is option (d).
Give a brief account on tax burden.The impact of a certain tax on how economic welfare is distributed is known as tax incidence or tax burden in economics. Economists make a distinction between the entities that end up paying the taxes and those who are initially subject to them. The tax burden, which accounts for how the tax affects prices, determines the underlying economic weight of the tax by comparing real earnings or utility costs before and after the tax is imposed.
The French Physiocrats, in especially François Quesnay, are credited with first popularizing the idea of tax incidence. They claimed that all taxes ultimately affect landowners and reduce property rent. The group that finally pays the tax or loses money as a result of it is said to "fall" under its impact. The main idea behind tax incidence is that it depends on price elasticity of supply and demand rather than the size of the tax imposed (i.e., where the money is collected has no bearing on where the money is collected).
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a stock broker allocated $100,000 to an account earning 4% per year compounded continuously. if no withdrawals are made, how much was in the account at the end of four years? round the answer to nearest dollar.
$100,000 was allocated by a stockbroker to a portfolio yielding 4% annually compounded. If no withdrawals are taken, there will be $117,352 left in the account after four years.
Given a certain rate of return, present value (PV) is the current value of a future financial asset or stream of cash flows. A discount rate or the interest rate that could be obtained through investment is applied to the future value to get the present value.
According to the continuously compounded interest formula,
FV = PV [tex]e^{it}[/tex]
Here,
Present Investment Value, or PV
the interest rate, I
T = time in years
So,
In light of the specified
PV = $ 100,000
I = 4% = 0.04
t = 4 years
Hence
FV stands for "Final Investment Value"
Then,
FV = 100,000 * e⁰.⁰⁴ˣ⁴
FV = 100,000*e⁰.¹⁶
FV = 100,000 * 1.173510871
FV = 117351.0871
FV = 117351
Hence
The balance in the account after four years was = $117,352
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a company's records showed the following for the month of december: sales $9,000; sales returns and allowances $1,000; cost of goods sold $5,000. net sales equal:
The total of a company's net sales is its gross sales less any returns, allowances, and discounts.
What is the formula for net sales?The total income that your company brings in before discounts, returns, and allowances is referred to as gross sales value. The following is the net sales formula.Net sales = Gross sales – Returns – Allowances – Discounts.
Sales made with a debit card, cash, credit card, or trade credit will all be counted toward the total sales. The total number of units sold is multiplied by the price per unit for the purpose of calculating gross sales.Example to illustrate net salesThe net sales will be computed with the formula net sales = gross sales – returns – allowances – discounts. The net sales would be $9000 - $1000 - $5000 = $3000.
Gross Sales = $9,000
Returns and Allowances = $1000
Discounts =$5000
Net Sales = $3000.
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applying the cobit framework, governance is the responsibility of group of answer choices internal audit. external audit. management. the board of directors.
According to the COBIT framework, the board of directors is in charge of governance.
ISACA developed the COBIT framework to close a critical gap between technological concerns, business risks, and control needs. In order to guarantee the quality, control, and dependability of information systems, COBIT may be applied in any business from any sector.
A few real-world issues with COBIT are noted, including its complex principles and organizational structure, a lack of implementation assistance and benefits, and its overlap with other IT standards. A COBIT-BSC model is suggested to illustrate a straightforward method of structuring COBIT control objectives in order to address these issues.
Businesses can manage risk, reduce the cost of IT services, gain better insight into IT operations, and eliminate silos between IT and other business units by using COBIT effectively.
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which section of the uniform commercial code (ucc) defines usage of trade as any practice that members of an industry expect to be part of their dealings?
Warranty implied: Merchantability; Utilization of Trade1) If the seller is a merchant with regard to goods of that kind, a warranty that the goods shall be merchantable is implied in a contract for their sale unless excluded or modified (Section 2-316).
What parts of the Uniform Commercial Code include the "best bid" rule?The perfect tender rule, which can be found in Article 2 of the Uniform Commercial Code, states that a buyer has the right to reject goods shipped or delivered by a seller if the seller's tender of the goods isn't perfect.
The Uniform Commercial Code: What is It?The United Commercial Code (UCC) was a plan to create laws that reflected actual business practices. The UCC has been adopted in some form by each of the fifty states. The UCC's Article 2 deals with goods sales. tangible things that can be moved when they are added to a contract.
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the sales tax is $41.55 on a stereo system purchase of $884. find the sales tax rate rounded to one decimal place or tenth of a percent.
The sales tax rate is 7.5%.
The expected return on the stock can be calculated using the Capital Asset Pricing Model (CAPM)
Expected return (Ri) = Rf + Beta*(Rm - Rf)
Rm = Market return = 9%
Rf = Risk-free rate = 3%
For Big Jack Co.:
Beta = 1.5
Expected return (Ri) = 3% + 1.5*(9% - 3%)
= 3% + 1.5*6%
= 3% + 9%
= 12%
For Little John Co.:
Beta = 0.75
Expected return (Ri) = 3% + 0.75*(9% - 3%)
= 3% + 0.75*6%
= 3% + 4.5%
= 7.5%
Thus, Big Jack Co. has a higher expected return.
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'the sales tax is $41.55 on a stereo system purchase of $884. the sales tax rate rounded to one decimal place or tenth of a percent.is 7.5%.
A sales tax is a tax paid to a governing body on the sale of certain goods and services. Laws generally allow sellers to collect taxes from consumers at the time of purchase. When a tax on goods or services is paid by consumers directly to the governing body, it is usually called a use tax.
Sales tax is a percentage calculated amount added to the cost of a product or service when a consumer purchases it from a retail store. 45 states have state sales tax rates ranging from 1.76% (Alaska) to 9.45% (Tennessee).
Sales tax is an additional amount paid based on a percentage of the selling price of goods and services purchased. For example, if you buy a new TV for $400 and live in an area with a 7% sales tax, you will pay $28 in sales tax.
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reorganizing may occur to group of answer choices overcome existing deficiencies. recentralize authority. implement changes while at the same time providing a period of adjustment. all answer choices are correct address technological changes that impact current workflow.
Introduction of technology in the workplace results in saving time, smoothing and easy running of complex projects, and getting real-time feedback from customers with no time.
Technology and networking have impacted the current workflow in both ways; positively and negatively. After post covid period, most companies started giving flexibility for employees to work from home, and transform entire business processes end to end, most of the work is done paperlessly (adjusted well), from recruitment to marketing, and digital and technology have transformed/ changed their way of conducting and increase the productivity of each department.
However, this also invited hidden hackers and the vulnerability of losing any confidential information in the technological world. Nevertheless, technology has increased the effectiveness of workflow.
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karen has saved $30,000 of her $40,000 goal for a down payment on a house. why is it unwise to keep all of that money in a traditional savings account?
An interest-bearing deposit account kept at a bank or other financial institution is referred to as a savings account.
Why you should not keep your money in a savings account?Adverse effects of savings accounts : Your money is pleasant and safe in a savings account. But if you keep your money in saves for several years, it won't grow very much. That's because savings accounts simply don't pay that much return, even during times of higher interest rates.Minimum balance requirements, lower interest rates than other accounts/investments, and federal withdrawal restrictions are three drawbacks of savings accounts. First of all, congratulate yourself if you're fortunate enough to have extra money for long-term ambitions.Saving is ultimately the first step to investing because, without it, you're not ready to take on the risk of putting your money in the market. karen has saved $30,000 of her $40,000 goal for a down payment on a house.Time to grow(required) 6 in moths.Traditional savings account end balance is $270,595.63To Learn more About savings account refer to :
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Jane invests $5,757 in an account that earns an annual interest rate of 2%. what will be the balance of the account in 16 years if the interest is compounded continuously?
With annual interest rate of 2% and compounded continuously, his balance in 16 years is $7,928.12
By compounding continuously, it means the number of periods is theoretically infinite.
The formula for the future value with continuous compounding is:
FV = PV . e^(r. t)
Where:
PV = present value
r = annual interest rate
t = number of years
Parameters given from the problem:
r = 2%
PV = $5,757
t = 16 years
Plug these parameters into the formula:
FV = 5,757 . e^(0.02 . 16)
FV = 7,928.12
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in the economy of spendsalot, the marginal propensity to save, mps, is 0.9. what is the marginal propensity to consume, mpc, for spendsalot? mpc
The marginal propensity to consume, for spends lots is b. the slope of pre-tax intake as a feature of GDP.
The required details for Gross home product (GDP) in given paragraph
Gross home product (GDP) is a monetary degree of the marketplace fee of all the very last goods and offerings produced and sold in a selected term with the aid of using countries. GDP (nominal) according to capita does now no longer, however, mirror variations in the price of dwelling and the inflation rates of the countries; therefore, the usage of a foundation of GDP according to capita at buying energy parity (PPP) can be greater beneficial while evaluating dwelling standards among nations, even as nominal GDP is greater beneficial evaluating countrywide economies at the worldwide marketplace. Total GDP also can be damaged down into the contribution of every enterprise or quarter of the economy.
GDP is frequently used as a metric for worldwide comparisons in addition to a extensive degree of monetary progress. It is frequently taken into consideration to be the "world's maximum effective statistical indicator of countrywide improvement and progress".
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Complete question
In the economy of Spends a lot, the marginal propensity to save is MPS=0.60. Use this information to answer both questions below.
1. What is the marginal propensity to consume, MPC, for Spends a lot?
2. MPC determines which of the following?
a. the slope of government consumption as a function of GDP
b. the slope of pre-tax consumption as a function of GDP
c. the slope of tax revenues as a function of GDP
d. the slope of pre-tax investment as a function of GDP.
the relationship between the mpc and the multiplier selected answer will be automatically saved. for keyboard navigation, press up/down arrow keys to select an answer. a depends on whether the economy is in recession or inflation. b depends on whether you change taxes or government spending. c is always positive. d all of the above.
The relationship between the MPC and multiplier is always positive
The multiplier is always between one and infinity, and MPC is always greater than zero and less than one. Fiscal multipliers are generally understood by economists to be the ratio of changes in output to changes in tax receipts or government spending. Fiscal multipliers are crucial because they can direct a government's actions during a financial crisis and pave the way for a subsequent economic recovery. To partially raise the amount of money flowing into the system, a government may reduce taxes or boost spending. Such budgetary management has an additive effect. In other words, it is reasonable to anticipate that every dollar spent will result in an increase in the GDP of more than one dollar.
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