The inception of the annuity (rounded to the nearest dollar) is $16,936.
The present value ordinary annuity factor of 7% for 4 periods is 3.38721. $5,000 x 3.38721 = $16,936.05.
To round it of to the nearest value $16,936.
What is annuity?
A contract known as an annuity needs recurrent payments to the individual who is entitled to receive them for a period of time longer than one complete year (annuitant). You can purchase an annuity contract on your own or with the assistance of a worker.
The four annuity kinds
1. Immediate annuities: The lifetime guaranteed option.
2. Deferred annuities: The tax-deferred option.
3. Fixed annuities: The lower-risk option.
4. Variable annuities: The potentially highest upside option.
What is the main purpose of an annuity?
A long-term insurance plan that guarantees income is an annuity. Because they offer a consistent stream of payments at regular intervals and because the growth of their profits is tax-deferred until you receive the money, annuities are a popular source of retirement income.
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insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is a(n) ________blank that consumers don’t normally think about much.
Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is an unsought product that consumers don't normally think about much.
What are unsought products?Although a buyer may feel pressured into purchasing a product they do not want, unsought commodities are frequently bought under certain circumstances, so a marketing strategy that harasses consumers into purchasing the product will be seen as immoral. A notable example of an unasked-for good is funeral services.
Unsought goods are those that consumers are unaware of or hardly ever think about purchasing and whose acquisition is motivated by a combination of risk or worry about harm and lack of desire. Examples of well-known but unpopular things are funeral services, encyclopedias, fire extinguishers, and reference books.
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In the following expression, the variable truckweight has the value 70000 and the variable weightlimit has the value 80000. truckweight < weightlimit what value does the expression evaluate to?
a. 70000
b. 80000
c. true
d. false
In the following expression, the variable truck weight has the true value does the expression evaluate. Thus, option (C) is correct.
What is the value?Values are the benchmarks or ideals by which we judge the acts, traits, possessions, or circumstances of others. Values that are embraced by many include those of beauty, honesty, justice, peace, and charity. Values are the benchmarks or ideals by which we judge the acts, traits, possessions, or circumstances of others. Values that are embraced by many include those of beauty, honesty, justice, peace, and charity.
Life values are the essential core beliefs that direct your actions and objectives as well as assist you in determining your level of overall success in life. For many people, values start early in life as their parents instill in them some of what they consider to be the most crucial principles.
Therefore, Thus, option (C) is correct.
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Which of the following accounts is credited by the seller when tax is collected on retail sales?! O A. Payroll Tax OB. Sales Tax Payable O c. Unearned Revenue OD. Accounts Payable
Sales Tax Payable accounts is credited by the seller when tax is collected on retail sales. Hence option (b) is the answer.
Is sales tax payable liability or expense?The total amount of sales taxes a company has gathered from clients on behalf of a governing tax authority is maintained as sales taxes payable. The company is responsible for timely remitting these monies to the government as the custodian of those funds. Typically, sales tax and use tax are shown as current liabilities on the balance sheet.
Due to the fact that the tax is a proportion of overall sales, they are both paid directly to the government and are based on the number of goods or services sold. The sales tax collected from customers on behalf of the overseeing tax authority is recorded in the balance sheet as a liability account called Sales Tax Payable.
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Exquisite Jewelers is developing its annual financial statements for 2015. The following amounts were correct at December 31, 2015: cash, $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,500; investment in stock of Z corporation (long-term), $36,000; store equipment, $67,000; used store equipment held for disposal, $9,000; accumulated depreciation, store equipment, $19,000; accounts payable, $52,500; long-term note payable, $42,000; income taxes payable, $9,000; retained earnings, $164,000; and common stock, 100,000 shares outstanding, par value $1.00 per share (originally sold and issued at $1.10 per share).
1) Based on these data, prepare a December 31, 2015, balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Image for Exquisite Jewelers is developing its annual financial statements for 2015. The following amounts were correct
Article 112 of the Constitution requires the authorities to existing to Parliament a statement of estimated receipts and expenditure in recognize of each economic year, from April 1 to March 31.
This statement is known as the annual economic statement.
What is the purpose of annual economic statements?Financial statements supply a image of a corporation's financial health, giving perception into its performance, operations, and money flow. Financial statements are vital due to the fact they supply records about a company's revenue, expenses, profitability, and debt.
Revenue and capital sections collectively shape the Union Budget, so the Annual Financial Statement is essentially the Budget of the government.
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Answer:
what are the answers
Explanation:
to the question
the is a form of organization that delivers goods and services at the lowest cost through specialization of jobs, close supervision of employees, and uniform regulations and procedures.
Bureaucracy is a form of organization that delivers goods and services at the lowest cost through specialization of jobs, close supervision of employees, and uniform regulations and procedures.
Both an administrative policy-making body and a group of non-elected government officials are referred to as bureaucracies. A bureaucracy, historically, was a form of government administration where departments were run by non-elected people. Today, bureaucracy is the administrative framework that governs all significant institutions, whether they are privately or publicly controlled. Bureaucracy is exemplified by the public administration in many jurisdictions and sub-jurisdictions, but it may also be seen in any institution with a centralized hierarchical structure, such as hospitals, academic institutions, commercial businesses, professional societies, social clubs, etc. Bureaucracy faces two main problems. Whether bureaucrats should be independent or directly answerable to their political overlords is the first conundrum.
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Which Agile Team event supports relentless improvement?
• Iteration Retrospective *
• Backlog refinement
• Iteration Planning
• Iteration Review
A Product Manager is working for an insurance company and is responsible for the internal systems used for managing claims. This is an example of what kind of Value Stream?
• Development Value Stream *
• Operational Value Stream
• Customer journey Value Stream
• Claims processing Value Stream
Which function is responsible for ensuring that the Agile Release Train has the content needed to successfully engage in Program Increment Planning?
• Release Train Engineer *
• Lean-Agile Center of Excellence
• Product Owner
• Product Management
What is the purpose of Iteration Goals?
• To align the team members and the Product Owner (PO) to the mission
• To ensure the team accomplishes all the committed Stories each Iteration *
• To provide the baseline required for measuring the team's performance
• To hold the team accountable to their goal
An Agile Release Train (ART) has implemented a completely automated Continuous Integration/Continuous Delivery (CI/CD) pipeline that can deploy code as it is checked into the source-code repository. How might a Product Owner (PO) adjust team events to take advantage of this capability and promote the flow of value?
• Identify Stories that are cleared for automatic delivery during Iteration Planning
• Release Stories that have been included in the team demo
• Review and accept Stories as they are completed
• Implement Feature toggles to control which Stories are released *
I put an asterisk next to the choices I think it is. Thanks for your help.
1. The Agile Team event supporting relentless improvement is A. Iteration Retrospective because it enables Agile Team members to discuss Iteration results, review practices, and identify improvements.
2. When a Product Manager works for an insurance company and is responsible for the internal systems for managing claims, it shows an example of B. Operational Value Stream.
3. 3. The function responsible for ensuring that the Agile Release Train has the content to engage successfully in Program Increment Planning is D. Product Management because they work with customers and Product Owners to understand, communicate and participate in solution validation.
4. The purpose of Iteration Goals is A. To align the team members and the Product Owner (PO) to the mission, ensuring agreement on the intended business value, team objectives, and shared purpose.
5. A Product Owner (PO) might adjust team events by A. identifying stories that are cleared for automatic delivery during Iteration Planning.
What is an Agile Team?An Agile Team (a scrum team) consists of the product owner, the scrum master, and the development team members.
In forming an Agile Team, employees, contractors, or freelancers can be selected and made responsible and wholly dedicated to executing the Agile project without any obligations to other projects.
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if a company reports a net loss it means
Answer: Negative net profit
Explanation:
A net loss occurs when the sum total of expenses exceeds the total income or revenue generated by a business, project, transaction, or investment.
Answer: Negative net profit
Explanation:
A project manager joins a project that has the following features: -Globally distributed team -Budget that is fixed -Very tight deadlines During planning, what should the project manager do to avoid any scope creep and keep the team focused on delivering a product that meets requirements?
In order to prevent scope creep & keep the group concentrated on producing a product that satisfies criteria, the project manager, Organize a bidders' meeting with the service suppliers.
What you mean by a project?An project is just a set of tasks that must be finished in order to accomplish a specific goal. A project may alternatively been defined as a collection of outcomes and inputs necessary to accomplish a specific objective. Projects can be handled for one person or one thousand, they can be simple or complex.
What means project work?Work that is focused upon accomplishing a job is called project work. Project work typically requires a lot of resources, involving time, people, and materials, and it allows students to practice a variety of abilities and linguistic structures.
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) substitutions in the event that the primary person is not available to fulfill their assigned duties
Succession planning is the substitutions in the event that the primary person is not available to fulfill their assigned duties.
A person is a being that possesses certain abilities or attributes such as reason, morality, conscience or self-awareness, and is part of a culturally established form of social relationship. such as kinship, property ownership or liability.
The traits that define personality, and therefore what makes a person considered a human being, vary widely across cultures and contexts. In addition to the question of personality, of what makes an organism to be considered a person in the first place, there are other questions of identity and personal ego.
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miranda is in school learning to be a welder. she spends long hours studying (and drinking coffee) and long hours practicing in the hot, dirty shop (and therefore takes frequent showers). miranda has $70.00 per month to spend on the soap and coffee she needs to function properly. in the accompanying graph, move the bc line to correctly depict miranda's budget constraint, assuming the soap costs $3.50 per bottle, and the coffee costs $14.00 per pound. if a point will not go where you want to put it, try placing the other endpoint there. then choose the best description of the lettered points according to whether they describe baskets of goods that are unaffordable, affordable and exhaust miranda's budget, or affordable with money left over.
Price of soap=3.5
Price of coffee=14
Income=70
Soap bought=0
Coffee bought=70/14=5
Coffee bought =0
Soap bought=70/3.5=20
coffee is a drink prepared from roasted coffee beans. Darkly colored, bitter, and slightly acidic, espresso has a stimulating impact on humans, in general, due to its caffeine content material. it is the most popular warm drink in the world. Seeds of the Coffea plant's culmination are separated to produce unroasted green coffee beans. The beans are roasted and then floor into exceptional particles that are typically steeped in warm water before being filtered out, producing a cup of espresso. it also includes served warm, although chilled or iced espresso is common.
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Roy leaves his pick-up truck at Sam's Auto service for an oil change. This is a: A. Bailment for the sole benefit of the bailor B. Bailment for the sole benefit of the bailee C. Mutual benefit bailment D. Not a bailment
Roy leaves his pick-up truck at Sam's Auto service for an oil change. This is a mutual benefit bailment.
A unilateral benefit bailment occurs when either the bailor or bailee benefits from the bailment while the other party does not. This situation may arise as a result of a gift or favor given by one party to the other.
A mutual-benefit bailment benefits both the bailor and the bailee. In general, a mutual benefit bailment is an enforceable contract because there is an exchange of value that drives the relationship.
The bailee has the right to possess the bailed item, to use it, to compensation, and may be entitled right to limited personal liability as well as indemnification even by bailor for potential liability arising from of the bailee carrying out her duties.
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Inaccurate forecasts can result in negative outcomes like: O High inventory costs and increased profits O Low inventory costs and stockouts O Imbalances in supply and demand O Material shortages and decreased costs of obsolescence
Inaccurate forecasts can result in negative outcomes like Imbalances in supply and demand. Thus the correct option is C.
What is the Outcome?Any topic's outcome gives information about the subject, including the major point, which aids the reader in evaluating the topic's advantages and disadvantages and formulating a conclusion as a result.
The availability of the desired item on the market is referred to as supply. If the supply of the requested commodities is not met, there is scarcity, which is brought on by an imbalance between supply and demand as a result of poor forecasting.
Inaccurate forecasting might result in poor judgments that harm your business rather than support your development strategies.
Therefore, option C is appropriate.
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the historical discount rate of the firm may be a good indicator of the appropriate discount rate to apply to the firm in the future, when all of the following conditions hold true except:
The discount rate is used to discount the future cash flows of a stock must be the equity cost of capital for the stock.
What is the discount rate's mathematical formula?The two basic formulas for calculating the discount rate are the weighted average cost of capital (WACC) and the adjusted present value (APV). The WACC discount formula is: WACC = E/V x Ce + D/V x Cd x, whereas the APV discount formula is: APV = NPV + PV of the impact of financing (1-T).
What does the discount rate for NPV imply?Either the cost of borrowing money or the anticipated rate of return for investors. If shareholders expect a return of 12%, the company will use that rate to calculate NPV. If the company pays 4% interest on its debt, it is permitted to use 4% as the discount rate.
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the broccoli market is perfectly competitive. this means that the price of broccoli is than the price would be if the market was monopolistically competitive, and broccoli output is than if it was monopolistically competitive. a) higher; lower b) higher; higher c) lower; higher d) lower; lower
The broccoli market is perfectly competitive, this means that the price of broccoli is lower than the price would be if the market was monopolistically competitive, and broccoli output in the market is higher than if it was monopolistically competitive.
What is a monopolistic competition?A monopolistic competition refers to a type of imperfect competition that exist when there are many producers competing against each other but selling products that are differentiated from one another and hence are not perfect substitutes
A restaurants, hair salons, household items, and clothing are examples of industries with monopolistic competition.
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a purse contains four $1 bills, five $10 bills and two $5. the odds of pulling out a $1 bill on the first draw are
A purse contains four $1 bills, five $10 bills and two $5. the odds of pulling out a $1 bill on the first draw are 4/11.
A little money bag or pouch designed for holding coins is referred to as a purse or coin purse. The majority of Commonwealth nations refer to it simply as a purse, although in the United States, the term "purse" often refers to a handbag.
Bursary, which shares the same root as "purse" and refers to a monetary award in a competition, can also be used interchangeably. The oldest pocketbook ever discovered was discovered with the Iceman Tzi, who lived approximately 3,300 BC. Egyptian hieroglyphs, which depict pouches worn around the waist, provide another early example.
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Suppose 3% of the people contacted by phone are receptive to a certain sales pitch and buy your product. If your sales staff contacts 2000 people, what is the probability that less than 50 of the people contacted will purchase your product?.
The probability that more than 100 purchase the product is 0
So, we have:
For x = 100, the z-score is calculated using:
So, we have:
z= 100-60/7.63
z = 40/7.63
z = 5.24
So, the probability that more than 100 purchase the product is calculated using:
P(x>1oo) = P (z>5.24)
From the z-score of probabilities, we have:
P (x>100)=0
Hence, the probability is 0
Probability = the number of methods of achieving success. the whole number of viable results. as an example, the probability of flipping a coin and it being heads is ½, because there is 1 way of having a head and the whole wide variety of feasible results is two (a head or tail). We write P(heads) = ½.
Chance is the branch of mathematics that researches the viable consequences of given events together with the consequences' relative likelihoods and distributions.
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What happens during a bank run?
a. Customers withdraw more money than the bank has on hand.
b. The federal government orders all banks to close.
c. States charter more banks than their citizens need.
d. the price of gold specie suddenly increases.
In the years leading up to the War of 1812, the U.S. economy had been on the upswing.
b. The federal government orders all banks to close.
The war with Britain, however, disrupted foreign trade. As one of the United States’ largest trading partners, Britain used its navy to blockade U.S. trade with other nations.
The war prevented U.S. farmers and manufacturers from exporting merchandise, blocked U.S. merchants and fisherman from sailing the high seas, and curtailed federal government revenues, which were derived mainly from tariffs on trade.
By 1815, the United States found itself heavily in debt, much like it had been at the end of the Revolutionary War thirty years earlier.
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ajax manufacturing produces a single product, which takes 8.0 pounds of direct material per unit produced. the company's policy is to maintain an end-of-quarter inventory of materials equal to 25 percent of the following quarter's material requirements for production. assume it is currently end of the first quarter of the new year, and that at the end of the prior 4th quarter, there were 76,000 pounds of material on hand.
a. Product produced 38000 units
b. Direct materials requirements 334400 lbs.
Define direct materials costThe total cost of all raw materials (also known as productive materials, raw materials, raw stock, and stocks), as well as specialized parts and sub-assemblies, utilized in the manufacturing process is divided by the number of units produced to arrive at the direct materials cost (DM) per unit.
Given:
One unit of a product takes 8.0 pounds of direct materials to produce
Each quarter has closing inventory of direct materials enough to produce 25% of planned production.
Therefore if 76,000 pounds of material is the closing inventory of previous quarter, it is equal to produce 25% of planned production this quarter.
Units of product planned for production = (closing inventory of materials / 8 pounds per material) /25%
Implies, the product produced in Q1 is:
Product produced = (ending inventory of materials / 8 pounds) /25%
= (76,000/8) /25% = 38000
38,000 units were planned to be produced in Q1 of new year.
If the production increases by 10% in the 2nd quarter, the planned production for Q2 is:
planned production for Q2
= Produced produced + produced produced × 10%
= 38,000 + 38,000 × 10%
= 41800
The direct material to produce the above quantity is:
Direct material required for Q2
= planned production for Q2 × 8 pounds per unit
= 41800 × 8 = 334400
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The complete question is:
Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct materials per unit produced. The company's policy is to maintain an end-of-quarter inventory of materials equal to 25 percent of the following quarter's material requirements for production. Assume that it is currently at the end of the first quarter of the new year, and there were 76,000 pounds of material on hand.
a. How many units of product were produced in the first quarter of the year?
b. Under the assumption that production will increase by 10 percent in the second quarter, what are the direct materials requirements (in pounds) for planned production in the second quarter?
a. Product produced units
b. Direct materials requirements lbs.
Identify the actions taken by the fed to assist banks during the financial crisis of 2008. check all that apply.
The actions taken by the fed to assist banks during the financial crisis of 2008 is The Federal Reserve took an expansionary approach during the crisis. This was done by expanding the money supply and boosting liquidity.
This can be seen in the Fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. The Federal Reserve and different significant banks reacted to the deepening disaster withinside the fall of 2008 now no longer best via way of means of establishing.
New emergency liquidity facilities, however, additionally via way of means of decreasing coverage hobby quotes to shut to 0 and taking different steps to ease economic conditions. Toward the quilt of 2008, the recession deepened with the chance of a massive financial coverage price range charge shortfall. In response, the Fed extended its stability sheet rules in an effort to decrease the price and enhance the provision of credit score to families and businesses.
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Answer:
Explanation:
c d e
 Which of the following best describes how each share of par value stock issued is reported in the Common Stock account? Multiple Choice Lower of cost or market O ) Current market value O Average issue price O O Par or stated value Which of the following describes, in part, how the declaration of a stock dividend affects the elements of the financial statements? Multiple Choice Decreases paid-in capital in excess of par value-common Decreases total assets o no effect on total No effect on total stockholders' equity o oo Increases total stockholders' equity How does the payment of a previously declared cash dividend affect the elements of the financial statements? Multiple Choice None of these answer choices are correct. Increases liabilities and decreases stockholders' equity o Decreases liabilities and increases stockholders' equity oo Decreases assets and stockholders' equity
A common stock account is a general ledger that records the par value of all common stock issued by a company. If these shares are sold for more than their par value, the excess amount will be posted separately to an additional deposit account.
At issuance, common stock is recorded at par and any amount received in excess of par is recorded in the account as equity in excess of par. If spent on assets or services instead of cash, recognition is based on the fair value of the shares given.
Equity refers to the assets remaining in the company after all liabilities have been settled. This figure is calculated by subtracting total liabilities from total assets. Alternatively, it can be calculated by subtracting treasury shares from the sum of share capital and retained earnings.
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Which of the following statements is true of explicit switching costs?
a. Explicit switching costs involve a penalty levied for terminating a deal or contract.
b. Explicit switching costs are recurring in nature.
c. Explicit switching costs are variable in nature.
d. Explicit switching costs are concerned with the indirect costs in time and money.
A penalty assessed for breaking a transaction or contract is referred to as an explicit switching cost.
What is a good illustration of the a switching cost?For instance, it would be difficult to compete with a grocery store if it provided free delivery but none of its rivals did. Because switching to the a different food store that does not offer free delivery would cost customers more money, time, and effort, the supermarket does have a high switching cost.
What are the alleged switching costs?Therefore, reported switching costs are a product of subjective assessment of experience and/or observation of others' relationship experiences; as a result, purchasers may feel switching costs of the a relationship without switching from a seller.
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Trader wants to hedge a long stock position from short term downside risk. Which strategy best aligns to this goal? o Long straddle o Long strangle o Collar o Long call
The collar is the strategy that best aligns to this goal if Trader wants to hedge a long stock position from short term downside risk. Option C.
What is the collar in business?A collar strategy, also known as a hedge wrapper, enables an investor to lock in the investment's maximum gain and maximum loss. By buying shares, protective (out-of-the-money) puts, and simultaneously selling an out-of-the-money call option, an investor can build a collar.
A collar is an options strategy that comprises selling an upward call and purchasing a downside put and is used to limit significant upside gains while limiting large losses.
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Which of the following is a major reason why businesses fail financially?
Undercapitalization is a major reason why businesses fail financially.
What is undercapitalization?When a company lacks sufficient capital to conduct normal business operations and pay creditors, it is said to be undercapitalized. This can happen if the company does not generate enough cash flow or is unable to obtain forms of financing such as debt or equity.
Undercapitalized businesses do not have enough capital to pay their creditors and must frequently borrow more money. If a company is unable to generate capital over time, its chances of bankruptcy rise as it loses the ability to service its debts.
Therefore, undercapitalization can lead to a business failing financially .
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Your question is incomplete, the complete question was
which is a major reason why businesses fail financial?
undercapitalization, undervalued stock , poor use of marketing mix , expense controls are too rigid.
The fed's actions do not change aggregate demand by any guaranteed amount, because it is not known __________
Due to the uncertainty surrounding the precise magnitude of M1 and M2 changes in reaction to changes in the monetary base, the Fed's actions have no assured effect on aggregate demand.
What are the Fed's top three activities?The Federal Reserve, also known as the Fed, is the most influential economic organization in the United States and possibly the entire world. Setting interest rates, controlling the money supply, and overseeing the financial system are some of its main functions.
What are the three things the Fed could do to help the economy?In order to control the money supply and promote stable economic growth, the Fed primarily employs three instruments. The instruments are: (1) reserve needs; (2) discount rate; and (3) open market transactions. Each of these has a unique effect on the money supply and has the ability to either increase or decrease the size of the economy.
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for this question, assume that a country experiences a permanent increase in its saving rate. which of the following will occur as a result of this increase in the saving rate? group of answer choices a permanently faster growth rate of output a permanently higher level of output per capita a permanently higher level of capital per worker all of these a permamently higher level of output per capita and capital per worker.
As a result of the permanent increase in the savings rate, the country would see:
a permanently higher level of output per capitaa permanently higher level of capital per workerWhat happens when there is a permanent increase in savings rate ?When a country has a permanent increase in the savings rate, this means that there will be more sources of loanable funds in the society and so the interest rates on loans will fall.
This would allow companies and individuals to borrow money which can be invested in the economy thereby leading to higher levels of output and capital per capita and worker, respectively.
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chess is an example of a(n) _____-move game because each player must wait his or her turn to move and each player bases decisions on what the other player did previously.
Chess in an example of a sequential move game because each player must wait his or her turn to move and each bases decisions on what the other player did previously.
Why is Chess a sequential game?In game theory, a sequential game refers to a game where one player chooses their action before the others choose theirs. Here, the other players do have an information on the first player's choice so that the difference in time has no strategic effect. A sequential games are governed by the time axis and represented in the form of decision trees and with perfect information, they can be analysed mathematically using combinatorial game theory.
A combinatorial games are also usually sequential games. Some games such as chess, infinite chess, backgammon, tic-tac-toe and Go are examples of a sequential games.
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the company has its camera and drone assembly facilities in: a)Thailand b)South Korea c) the United Statesd)Japan e)Taiwan
The business enterprise has its digital digicam and drone meeting centers in e)Taiwan.
The required details about Taiwan is mentioned in below paragraph.
Taiwan is famous for generating some specific things. Most well-known of all are its electronics and their components. These Taiwanese merchandise aren't arbitrarily well-known – they make up a large part of Taiwan’s exports and that they run the gamut of the entirety electric, from flat screensto contact screens, microchips to optical drives, etc.No rely what logo or sort of laptop you’re analyzing this on, the probabilities are overwhelming that a few part, or most, of what’s interior of it was made in Taiwan. The island of Formosa is the world’s biggest unmarried laptop chip producer, and that they made high-quality breakthroughs in contact display era that has spurred the cellphone revolution.
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Remaining-Balance Method is a method of computing interest, with which, interest is calculated by multiplying the principal outstanding by the effective rate for the period in question. True/False
Remaining-Balance Method is a method of computing interest, with which, interest is calculated by multiplying the principal outstanding by the effective rate for the period in question. False
The difference between the future value of the initial loan amount (minor) and the future value of the annuity is represented by the remaining balance formula (diminutive). The value at time n if no payments were made is equal to the initial loan amount's future value.
The unpaid fraction of a loan, debt, or credit card balance is represented by the remaining balance. The loan's current outstanding balance is calculated using the remaining balance formula. For instance, this particular method can be applied to calculate the loan's total remaining balance. The value at a future time can be calculated using this formula in the present.
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According to the assumptions of the quantity theory of money, if the money supply increases 5 percent, then a. both the price level and nominal GDP would rise by 5 percent. b. the price level would rise by 5 percent and nominal GDP would be unchanged. c. the price level would be unchanged and nominal GDP would rise by 5 percent. d. both the price level and nominal GDP would be unchanged.
Option (B). The price level would rise by 5 percent and nominal GDP would be unchanged.
Which is the assumption of quantity theory of money?
The Quantity Theory of Money (QTM) also assumes that the amount of money in an economy has a large impact on its economic activity. Changes in the money supply therefore lead to changes in the price level, changes in the supply of goods and services, or both.
What do you mean by Price level?
The price level is the average current price across the range of goods and services produced in an economy. More generally, price level refers to the price or cost of goods, services, or security in the economy.
How can you find the price level?
But how do you find the price level? Economists measure the price level with a price index. A price index is a number whose movement reflects the movement of the average price level. A 10% increase in the price index means a 10% increase in the average price level.
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