Answer:
The answer is c.
Explanation:
Receivables are reported as assets when they are earned.
Revenues are reported when they are earned.
Payables are reported as liabilities when they are incurred.
Record and report revenue at the time it is earned and realized by the business, not when the cash for the revenue is received by the business.
"Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers." This statement: ____________
Answer: is correct
Explanation: Tariff refers to the tax imposed on import and export activities. These are a type of trade restrictions that are made to regulate the domestic market of the country.
The tariff imposed on export will increase the price of the exported goods in the domestic market. Thus a majority population in the country will not purchase it and the domestic producers will benefit from this situation. In such a case, the domestic producers will make unreasonable profits from domestic consumers.
In 2017, President Trump considered imposing a tariff on automobiles assembled by U.S. manufacturers in Mexico that were to be sold in the United States. If this tariff was imposed and as a result, some of these manufacturers moved their automobile assembly from Mexico back to the United States, these firms would be reacting to which of the three key economic ideas?
Answer: People respond to economic incentives.
Explanation:an incentive can influence different individuals in different ways. Responses to incentives are predictable because people usually pursue their self-interest. Changes in incentives cause people to change their behavior in predictable ways. Incentives can be monetary or non-monetary.One of the clearest examples of where people respond strongly to incentives is retirement. If you raise the retirement age, many people who'd otherwise be eligible continue to work. Since retirement probably increases life satisfaction/happiness and perhaps even health we obviously want it to happen at some point, but since it's also very costly in terms of benefits paid and productive activity not done, we want to be mindful of both costs and benefits.
An employee's decision to inform the press or government officials of his or her firm's unethi-cal practices is referred to as a. whistle-blowing. b. the corporate code of ethics. c. business ethics. d. the grapevine.
Answer: A) Whistle-blowing
Explanation: Reporting irregularities or whistleblowing is the term used when a person gives information regarding an illegal act, such as corruption, sexual harassment, among others. We can refer to this action with the name "report irregularities" or otherwise. The person usually has a close relationship with the organization, often it is an employee, but sometimes it can be a supplier or a customer. He becomes a whistleblower when he observes behaviors or actions that he considers to be improper, illegal behaviors and that do not respect the company´s code of conduct, and reports that suspicion as a matter of reporting irregularities.
____ is/are measured as the sum of value added by resident firms, households, and government operating in an economy. National reserves Gross national product Gross national income Gross domestic product
Answer:
Gross domestic product
Explanation:
Gross domestic product is/are measured as the sum of value added by resident firms, households, and government operating in an economy.
Prepare a service blueprint for each of these banking transactions:
a. make a savings deposit using a teller.
b. apply for a home equity loan solutions
Answer:
b. apply for a home equity loan solutions
Explanation:
A service blueprint for banking transactions, such as making a savings deposit using a teller, involves front-stage services (interaction with bank personnel), backstage services (processing by the bank), and support services (the bank's electronic systems). A similar blueprint applies for applying a home equity loan where the bank also acts as the financial intermediary.
Explanation:In order to conduct banking transactions, such as making savings deposits using a teller or applying for a home equity loan, a service blueprint is crucial. This blueprint provides a visual representation of all the services involved.
First: Savings deposit using a teller:
The customer interacts with the bank teller i.e., front stage services.The teller deposits the money into the customer's account i.e., backstage services.The bank's electronic system updates the customer's account balance - this forms part of the support processes in the blueprint.Then: Applying for a Home Equity Loan Solution:
The customer provides the necessary information to the loan officer at the bank (front stage).The loan officer processes the application and makes a recommendation based on the client's credit worthiness and home equity value i.e., backstage services.The bank's loan system processes the application and finalizes the loan agreement - this is part of the support services.In both of these scenarios, the bank acts as a financial intermediary, facilitating the flow of money from savers to borrowers, or in this case, from depositors to loan applicants.
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Which of the following features of e-commerce technology enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text?
A) richness
B) ubiquity
C) information density
D) personalization
Answer:
Richness
Explanation:
Richness is the feature of E-commerce technology that enables merchants to market and sell "complex" goods and services to consumers via marketing messages that can integrate video, audio, and text.
Richness refers to information and its complexity. With the use of e commerce and web,information can reach larger audiences.
If Joe transfers $1,000 from his savings account to his checking account and assuming that banks cannot lend this money, then: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices
a. M1 will increase by $1,000.
b. M1 will remain the same.
c. M1 will increase by $1,000, and M2 will decrease by $1,000.
d. M2 will increase by $1,000.
Answer:
A
Explanation:
M1 money supply includes coins and bill in circulation, which are most liquid ones: cash, amounts held in the checking accounts and travelers’ checks. M2 money supply includes everything in M1 but it also includes savings deposits in banks, money market securities, mutual funds and other time deposits.
At the begging Joe had $1,000 in his savings account, which means those $1,000 were included in M2. When he transferred this amount to the checking account, M1 increased by $1,000. M2 will not decrease because this money supply includes everything in M1 plus other types of deposits.
Answer: Option (a) is correct.
Explanation:
M1 consists of:
M1 = currency with the public + Check-able deposits + other deposits with RBI
M2 consists of:
M2 = M1 + post office savings bank account
If Joe transfers $1,000 from his savings account to his checking account, then there is a reduction in M2 and increase in M1. We know that M1 is a component of M2, therefore, M2 increases.
Hence, there is no change occur in M2 and M1 increases by $1,000.
If all angles are measured in degrees, the ratio of three times the measure of $\angle A$ to four times the measure of the complement of $\angle A$ to half the measure of the supplement of $\angle A$ is $3:14:4$. What is the number of degrees in the measure of the complement of $\angle A$?
Answer:
The measure of the complement of angle A is [tex]70\°[/tex]
Explanation:
we know that
If two angles are complementary, then their sum is equal to 90 degrees
If two angles are supplementary, then their sum is equal to 180 degrees
Let
x ----> the measure of angle A
(90-x) ----> the measure of the complement of angle A
(180-x) ---> the measure of the supplement of angle A
we know that
[tex]\frac{3x}{4(90-x)}=\frac{3}{14}[/tex] -----> equation A
[tex]\frac{3x}{0.5(180-x)}=\frac{3}{4}[/tex] ----> equation B
Solve equation A or equation B to determine the value of x
Solve equation A
[tex]\frac{3x}{4(x-90)}=\frac{3}{14}[/tex]
[tex]14(3x)=4(90-x)(3)\\42x=1,080-12x\\54x=1,080\\x=20[/tex]
Verify the value of x in the equation B
[tex]\frac{3(20)}{0.5(180-20)}=\frac{3}{4}[/tex]
[tex]\frac{60}{80}=\frac{3}{4}[/tex]
[tex]\frac{3}{4}=\frac{3}{4}[/tex] ---> is ok
Find out the measure of the complement of angle A
([tex]90-x)\°=(90-20)\°=70\°[/tex]
The following data is available for Blaine Corporation at December 31, 2012: Common stock, par $10 (authorized 25,000 shares) $200,000 Treasury Stock (at cost $15 per share) 900 Based on the data, how many shares of common stock are a) outstanding, and b) have been issued ? a.25,000 b.20,000 c.24,940 d.19,940
Answer:
a) b.20,000
b) b.20,000
Explanation:
a) Number of common stocks issued = 200,000/10
= 20,000
So, 5000 stocks remain with company.
Number of common stocks outstanding = 20000
b) b. 20,000
In January 2012, one US dollar was worth 50 Indian rupees. Suppose that over the next year the value of the Indian rupee decreases to 60 Indian rupees to one US dollar. Suppose also that the price level of all goods and services in India, as measured in rupees, falls 20%, so that the Indian price index falls from a value of 100 to 80. At the same time, suppose that the US price level increases by 6%, to 106.
By what percentage did the value of the real exchange rate change over this period? Please give your answer to the nearest whole percentage point.
What will happen to the following as a result of the changes?
America's consumption of Indian goods and services will likely...
a)increase
b)decrease
c)stay the same
India's consumption of American goods and services will likely...
a)increase
b)decrease
c)stay the same
The value of the real exchange rate changed by 59% over the specified period. Consequently, American consumption of Indian goods and services will likely increase, while India's consumption of American goods and services will likely decrease.
Explanation:To calculate the percentage change in the real exchange rate, we have to adjust the nominal exchange rate change by the inflation rates of the two countries. From January 2012 to January 2013, the Indian rupee has depreciated from 50 INR/USD to 60 INR/USD, which is a 20% nominal depreciation (60-50)/50*100. However, taking into account inflation, with a 20% decrease in Indian prices (from 100 to 80) and a 6% increase in US prices (from 100 to 106), we can calculate the real exchange rate change.
The real exchange rate (RER) can be computed as follows: (Nominal Exchange Rate * Price Level abroad) / Price Level home. The initial RER is (50 INR/USD * 100) / 100 = 50. The final RER is (60 INR/USD * 106) / 80 = 79.5. Thus, the real exchange rate has changed by (79.5 – 50) / 50 * 100 = 59% to the nearest whole percentage point.
With a weaker rupee and lower price level in India, American consumption of Indian goods and services will likely increase, as these goods become cheaper for Americans. Conversely, with a stronger dollar and a higher price level in the US, India’s consumption of American goods and services will likely decrease, since these goods become more expensive for Indians.
Which of the following correctly describes NIMS? A. A communications plan. B. A static system used during large-scale incidents. C. A response plan. D. A systematic approach to incident management.
Answer:
D. A systematic approach to incident management.
Explanation:
National Incident Management System (NIMS) is a national system approach to incident management. It describes all the requirements for a standardised framework for communications between all jurisdictional levels and across functional disciplines.
Answer:
Option D.
Explanation:
A systematic approach to incident management, is the right answer.
NIMS is the abbreviated form of the National Incident Management System. It is a broad, nationwide approach to the management of various incidents. This approach is applicable to all the jurisdictional levels. This system provides a uniform nationwide structure and method to encourage the governments at all levels, NGOs and private sector to work unitedly and get ready to prevent, react and regain from the consequences of the incidents notwithstanding with the reasons, size, complexity and location of the incident.
At a cost of $12,000, Community Hospital is refinancing the mortgage on the building that houses its clinic. The hospital will save $500/month in interest. What is the payback period on the refinancing?
Answer:
24 months
Explanation:
Payback method analysis the amount of time that will pass until you recover your capital. Since the capital is $12000 ant the payments are $500 per month, the payback period will be 12000/500 = 24 months.
Answer: 24 months
Explanation: First, the $500 x 12 months = $6,000 savings in the first year.
For the next 12 months, the savings is an additional $6,00.
Therefore, if you add those 2 together, it is 24 months to recover the cost of refinancing.
Businesses are motivated to organize as corporations because stockholders in a corporation have _______ liability for corporate debts.
limited
personal
unlimited
no
Answer: Limited
Explanation: As per the law. the owners of a company and the company itself will be considered two separate entities. Thus, the liability of the owners will be limited to their extent of investment. And any court case in case of default will be named on company and not owners.
No personal assets of owners of a company shall be taken into consideration while repaying the stakeholders in case of default.
Hence from the above we can conclude that the correct answer is A.
A client is scheduled for patch testing to determine allergies to several substances. Which action associated with this test should you delegate to a medical assistant working in the allergy clinic?
Answer:Scheduling a follow-up appointment
Explanation:
Scheduling a follow-up appointment for the client is within the legal scope of practice and training for the medical assistant role. Client teaching, assessment for positive skin reactions to the test, and monitoring for serious allergic reactions are appropriate to the education and practice role of licensed nursing staff.
Are any of the following NOT a good reason for managers to be well grounded in basic research?A. Do research for themselves.B. Make competent decisions on whether to make or 'buy' research from researchers outside the firm.C. Define their own needs and form researchable questions for the specialist.D. Judge the logic of a research approach.E. All are good reasons.
Answer: E
Explanation: managers to be well grounded in basic researcj so that they’ll be to do research for themselves ,make competent decisions on whether to make or 'buy' research from researchers outside the firm, be ble to define their own needs and form researchable questions for the specialist and Judge the logic of a research approach.
How does a leader positively reinforce the efforts of the team?
Answer:
Rewarding at all levels
Explanation:
In order to reinforce efforts of the team, a good leader should:
1. Pay attention to the team. It ´s the first sign of respect: make the team know that they are the most important part of the machinery. How ? watching, evaluating, advising, even correcting.
2. Provide resources: bonuses, promotions, technoloy, and professional advice ( not everything is dollars )
3. Being the best: leader must be the first one in knowledgment, personal effort, care, camarederie, respect.
All of those will provide value to team members, finally that is the prize, and clearly a win-win.
Answer:
by recognizing and rewarding team members’ contributions
Explanation:
Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms incur high transportation costs to distribute its products. Juggernaut, Inc. wants to enter foreign markets via exports. How can Juggernaut, Inc. avoid incurring high transport costs when exporting its bulk products?
Answer:
Regional Production
Explanation:
Juggernaut, Inc. can manufacture its bulk products by region, that way the distance to each selling point is less and the costs are lower.
Juggernaut, Inc. can reduce export transportation costs by producing closer to target markets, optimizing transport methods and routes, and partnering with local distributors for potentially localized assembly and customization of products.
Juggernaut, Inc. can avoid incurring high transportation costs when exporting its bulky commercial appliances by exploring a few strategic options. One approach is to establish manufacturing plants closer to the target foreign markets; by producing products in proximity to the consumers, the firm can significantly reduce transport distances and costs. Additionally, Juggernaut, Inc. can consider shipping disassembled units to reduce volume and possibly take advantage of some countries' lower tariffs on component parts compared to fully assembled products.
Another method to manage transportation costs is to use cost-effective transport options, like shipping via water transport, which is typically less expensive for heavy and bulky items than air freight. Juggernaut, Inc. should also assess its packaging methods, possibly adapting them to maximize space utilization and protect the goods during longer journeys. This can be coupled with strategies to maximize profits such as optimizing delivery routes and schedules to consolidate shipments.
Lastly, the company could explore partnerships with local distributors in the target markets. Distributors with established infrastructure can often handle bulk products more economically. Such partnerships might also open up additional services for the company, such as local assembly or customization of products, which can further reduce costs and make the offerings more attractive to local consumers. By adapting products and services, Juggernaut, Inc. has the potential to reduce transportation overhead while potentially increasing their global market share.
Money is always based on a precious metal like gold or silver. anything that is generally accepted in payment for goods and services or in the repayment of debt. a flow of earnings per unit of time. the total collection of pieces of property that are a store of value.
Answer: Option(B) is correct.
Explanation:
Money is a term or instrument that is generally used in making transaction of goods and services. Individuals use money as a medium of exchange, unit of value and for making standard deferred payments. It is easy to store money. We can easily measure the value of goods and services in terms of money. Now days, money is normally utilized as a medium of exchange.
The management department at a local university began posting all assignments and other class materials to a course management website instead of creating a packet for students to purchase each term. This is a ______ innovation.
A.process
B. product
C. policy
D. breakthrough
E. reactive
Answer:
The correct answer is A.process.
Explanation:
Due to the extension of the term “innovation” it is important to keep in mind that two different meanings can be distinguished:
Innovation, as a process by which an idea is transformed into a novel product or service in the market, or by which a new manufacturing process or new organization or marketing methods is incorporated in the company (innovation capacity of the company). Innovation, such as the activity for which results derived from research and development (knowledge, prototypes) are launched into the market in the form of new products, services or are transformed into new processes in the company (R + D + i )Lemonade.You want to buy a new car, and you knowthe model you want. The model has three options, eachone of which you can either take or not take, and you havea choice of four colors. So far 100,000 cars of this modelhave been sold. What is the largest number of cars thatyou can guarantee to have the same color and the sameoptions as each other?
Final answer:
The largest number of cars with the same color and options that can be guaranteed out of 100,000 is at least 3126, calculated using the Pigeonhole Principle with 32 possible color and option combinations.
Explanation:
The question involves finding the largest number of cars that can have the same color and the same options out of 100,000 cars sold with given customizations.
With three options available for each car, each of which can be either selected or not, there are 23 possible combinations of options since each option has two possible states: taken or not taken. With four colors available, this creates a total of 23 × 4 = 32 different combinations for options and color.
Using the Pigeonhole Principle, to guarantee that at least two cars have the same combination of color and options, you would divide the total number of cars sold by the number of possible combinations and round down to the nearest whole number.
Therefore, 100,000 cars divided by 32 possible combinations equals 3125 whole combinations with at least one car leftover, meaning at least 3126 of these cars will share the same color and options configuration.
This is the largest number we can guarantee will have the same color and options out of the 100,000 cars sold. It is important to note that in real scenarios such as purchasing a car, factors like imperfect information about the condition of used cars and the associated risks are important considerations.
Marvin's concerns in the provided text about the potential of acquiring a 'lemon,' represent the challenges in ensuring high-quality purchases and the balance between cost and reliability.
Which of the following terms best represents a situation in which a government does not attempt to influence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country? A. Free trade B. Positive-sum game C. Socialism D. Absolute advantage E. Zero-sum game
Answer: A
Explanation: A. Free trade . A free trade represents a situation in which a government does not attempt to influence through quotas or duties what its citizens can buy from another country, or what they can produce and sell to another country . The free trade
is a trade policy that does not restrict imports or exports; it can also be understood as the free market idea applied to international trade. A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
Convertible bondsa. have priority over other indebtedness.b. are usually secured by a first or second mortgage.c. pay interest only in the event earnings are sufficient to cover the interest.d. may be exchanged for equity securities.
Answer:
d. may be exchanged for equity securities.
Explanation:
Convertible bonds
It is a debt security , which is fixed and which yields the interest payments , but it can be converted to a predetermined number of the equity shares or common stock .
The bond to stock conversion can be done at a number of times during the life of the bond .
These bonds are mostly issued by the companies which have low credit ratings and have potential of higher growth .
In the context of Porter's five forces model, the bargaining power of suppliers (auto dealers) is a weak force when considering the example of auto dealers setting the price of new cars in which consumers are unable to verify the 'true price' of vehicles. T/F
Answer:
False
Explanation:
As per the Porter's Five force the force of supplier is described as follows:
The suppliers sets the price of goods that can be controlled by them, that depends on number of suppliers of inputs for the goods, if there are less suppliers then the price will move according to suppliers as for high demand there are low suppliers.
Further here it is provided that the price is determined by auto dealers, of a product for which consumers cannot derive the true price that means, that the suppliers can add any profit margin.
This will not make the supplier force weak in any respect.
Therefore, the statement is False.
Some new production facilities are designed to have a flexible layout that can be easily modified as needed. These facilities use a number of modules that can be assembled in different ways to produce different layouts. Such designs are called __________ layouts.
a) Process
b) Cellular
c) Fixed-position
d) Product
Answer:
b) Cellular
Explanation:
Cellular layouts in new productions facilities are designed to have flexible layouts, making it possible for the workers to modify them accordingly to their necessities, this can help prevent time-loss and wasting resources, while giving the opportunity to produce different products and create different layouts for differente processes of production.
The production facilities that can be easily changed and adjusted according to need are known as Cellular Layouts. In such layouts, machines are organized into modular cells that can perform all necessary operations for a specific product type. This design allows for quick reconfiguration to meet changing production needs.
Explanation:The production facilities described in the question, which are designed using modules that can be assembled in different configurations to allow for flexibility, are known as Cellular Layouts. In cellular layouts, machines are grouped into cells, and each cell can perform all the operations necessary for a particular product type. This setup allows the production layout to be easily adjusted to accommodate different products, or changes in production scale.
For example, in an automobile manufacturing industry, one cell may be designated for making engines, another for body assembly, etc. If demand for a certain type of car increases or decreases, the modular cells can be reconfigured quickly to meet the changing needs.
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Goodwill is:
Amortized over the greater of its estimated life or forty years.
Only recorded by the seller of a business.
The value of a business as a whole, over and above the value of its net identifiable assets.
Recorded when created internally through advertising expense.
Answer:
The correct answer is The value of a business as a whole, over and above the value of its net identifiable assets.
Explanation:
Goodwill is an intangible asset that reflects the connections of a customer service business, reputation and other similar factors.
It shows the value of a company's reputation, which can affect its market situation, both positively and negatively.
If it affects positively, it is called goodwill. This is a fixed asset, an element of the company with prolonged value, not generally intended for sale.
However, goodwill can be characterized as something that can generate future profits for the company.
Madison's gross tax liability is $10,450. Madison had $4,520 of tax credits available and she had $9,300 of taxes withheld by her employer. What is Madison's taxes due (or taxes refunded) with her tax return?
Answer:
Madison got refunded $3,280.
Explanation:
tax due (or tax refunded ) = gross tax liability - tax credits - tax withheld
= $10,450 - $4,520 - $9,300
= -$3,280
Therefore, Madison got refunded $3,280.
Jenna is the information technology director at a large country club. She's taking the other three members of her department on a retreat to develop department strategies and initiatives. What type of strategic planning is Jenna and her department engaging in?
a. club strategic planning
b. operations strategic planning
c. long-range strategic planning
d. functional strategic planning
Answer: Functional strategic planning
Explanation: Functional strategic planning refers to planning for a specific functional area of the organisation. This type of planning affects only one department or the area for which is made and other departments do not get affected from it very much. This is done by the departmental heads of the organisation.
In the given case, Jenna is the director of IT department and is planning to retreat her departments strategies. Her actions would only affect the IT department.
Hence from the above we can conclude that the correct option is D.
Kordel Inc. acquired 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of Raxston’s liability should be eliminated? Multiple Choice
a. $375,000.
b. $125,000.
c. $300,000.
d. $500,000.
e. $0.
Answer:
what amount of Raxston’s liability should be eliminated? d.$500,000
Explanation:
At different levels of the consolidation, certain intercompany payables and receivables balances must be eliminated. Eliminations are only required in the context of a consolidation where the trading parties are both included in a given consolidation.
Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the terms of trade are established as 1 apple for 2 oranges: A. there are no incentives for Alpha to specialize and trade with Beta. B. it is in the interest of both countries to specialize and trade with one another. C. it is in the interest of Beta to grow oranges and trade for apples. D. there are no incentives for Beta to engage in international specialization and trade of apples and oranges.
Answer: Option (a) is correct.
Explanation:
Alpha:
Opportunity cost of producing one apple = [tex]\frac{18}{9}[/tex]
= 2 oranges
Beta:
Opportunity cost of producing one apple = [tex]\frac{16}{4}[/tex]
= 4 oranges
It was given that the terms of trade are established as 1 apple for 2 oranges.
Therefore, there are no incentives for Alpha to trade until the terms of trade becomes greater than 2 oranges for one apple.
Comparative advantage dictates that Alpha should specialize in apple production while Beta should specialize in orange production. Given the terms of trade (1 apple for 2 oranges), both Alpha and Beta would benefit from specialization and trade, which aligns with answer option B.
Explanation:The student's question is a classic instance of comparative advantage and trade. Alpha can produce either 18 oranges or 9 apples an hour, whereas Beta can produce either 16 oranges or 4 apples an hour. When trade is set at 1 apple for 2 oranges, we must identify which country has the comparative advantage in producing each good.
To determine the comparative advantage, we calculate the opportunity cost of producing one unit of a good in terms of the other. For Alpha, the opportunity cost of 1 apple is 2 oranges (18 oranges / 9 apples), and for Beta, the opportunity cost of 1 apple is 4 oranges (16 oranges / 4 apples). Therefore, Alpha has a comparative advantage in producing apples since they give up fewer oranges to produce one apple, and Beta has a comparative advantage in producing oranges since they give up fewer apples to produce oranges.
Given the terms of trade (1 apple for 2 oranges), Alpha should specialize in apples and Beta should specialize in oranges. Both can benefit from this trade since Alpha can trade an apple for more than 2 oranges (the amount it would sacrifice to make its own) and Beta can trade 2 oranges for an apple, which is less than the 4 oranges it would have to give up to make its own apple. The correct answer is B: it is in the interest of both countries to specialize and trade with one another.
Diana invested $61,293 in an account with a fixed annual percent of interest, compounding quarterly. At the end of five full years, she had $76,662.25 in principal plus interest. Approximately what was the annual percent rate of interest for this account?
Answer:
4.5%
Explanation:
Given:
Amount invested = $61,293
Time period = 5 years
Interest is compounded quarterly , thus, n = 5 × 4 = 20
Final amount = $76,662.25
Let the interest rate be 'i%' quarterly
Now,
for compound interest
[tex]\textup{Present value}=Amount invested\times(1+\frac{i}{100})^n[/tex]
on substituting the values, we get
[tex]\textup{76,662.25}=61,293\times(1+\frac{i}{100})^20[/tex]
or
( 1 + 0.01 × i )²⁰ = 1.250
or
or i = 1.122
thus,
annual interest rate = 1.122 × 4 = 4.488 ≈ 4.5%