in the long-run the real interest is equal to: a. the nominal interest rate d. the rate of growth of money supply b. the inflation rate e. the unemployment rate c. the marginal product of capital

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Answer 1

The answer is (c) the marginal product of capital.

The correct answer is C In the long run, the real interest is equal to the marginal product of the capital. Explanation: In an equilibrium, t

Macroeconomics; Part I: Introduction to MacroeconomicsChapter 1: What is MacroeconomicsMacroeconomics = The study of the aggregate or average behaviour of the economy.

Gross domestic product (GDP) = Measure of a country’s productive activity, corresponding to the value-added generated by a factor of production (local and foreign-owned) within a country (BBP) steady growth of GDP over time and business cycles (= succession of periods of rapid growth and decline in which output fluctuates around its long-run trend). Unemployment = Individuals without a job who are actively seeking work Unemployment rate is the proportion of unemployed workers in the labour force (= The total number of individuals who are either working or actively looking for a job Not the same as the total population).

Labour and capital are the two main factors of production. Labour share = The fraction of national income paid to labour as wages or other forms of compensation If labour share increases, the average stock prices will likely decrease. Inflation = Sustained increase in prices over longer periods of time-related in the business cycle.

Hyperinflation is = Period of extremely high inflation when the monthly rate exceeds 50W% Inflation is procyclical (= positive related to the state of the economy) and the unemployment rate is countercyclical (= negative related to the state of the economy).

The monetary economy is dealing with the financial market: trade in bonds, stocks, currencies etc. Real economy = Production and consumption of goods and services and the incomes associated with productive activities.Openness = Ratio of exports/imports to GDP, which measures globalization. In the long run, there’s a trend rate of economic growth with a constant growth rate (logarithmic).In the short-run, there exist business cycles (up and downs) around its growing trend. Burns-Mitchell diagram = A diagram displaying the behaviour of macroeconomic variables over the typical business cycle as a deviation from their values at the cyclical peak procyclical/countercyclical or leading/lagging.

Laissez-faire (no government support) vs. Interventionism (government support)The demand side relates to spending decisions by economic agents (households, firms and government agencies) both at home and abroad Can be manipulated by:- Fiscal policy = Use of government budget to affect the volume of national spending- Monetary policy = Actions taken by central banks to affect financial conditions in an economy supply side relates to the productive potential of the economy Can be manipulated by eliminating inefficiencies (for example unemployment policies)Exogenous variable = A variable which is independent of economic conditions

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Related Questions

according to the law of , completely eliminating a negative externality may not be desirable due to marginal costs eventually exceeding marginal benefits.

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According to the law of diminishing returns completely eliminating a negative externality may not be desirable due to marginal costs eventually exceeding marginal benefits.

What is law of diminishing returns?When one production element is increased incrementally while keeping the amount of all other production factors constant, the marginal output of the manufacturing process decreases. This phenomenon is known as diminishing returns in economics.An economic principle known as the law of diminishing returns states that as investment in a certain area increases, the rate of profit from that investment can no longer increase at a certain point assuming other variables remain constant.Because it contributes to economists' predictions that a firm's short-run marginal cost curves will slope upward as the number of output units rises, the law of diminishing returns is significant.

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with the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume, and can immediately see the effects of each change on the break-even point and profit. this is called

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With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume, and can immediately see the effects of each change on the break-even point and profit. this is called 'what-if' or sensitivity analysis.

What is sensitivity analysis?

How adjustments to input factors or other variables impact target variables is examined by a financial model known as sensitivity analysis. It is a method of predicting the result of a decision based on a number of variables. By producing a particular set of variables, an analyst can evaluate the effects of changing one variable.

Target and input, or independent and dependent, variables are both carefully examined when performing a sensitivity analysis. The analyst also considers the impact of the input variable on the target in addition to how the variables change.

Sensitivity analysis is useful for forecasting share prices of publicly traded companies.

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Savory bean company makes and sells a sweet espresso coffee beverage under the name "sugar sugar. " tropic roast, inc. , later markets a similar drink under the name "sweet sweet. " this is most likely?.

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Savory Bean Company makes and sells a sweet espresso coffee beverage under the name "Sugar Sugar." Tropic Roast, Inc., later markets a similar drink under the name "Sweet Sweet." This is most likely to be trademark infringement.

The use of a trademark alone without the owner's or any licensees of a company's consent constitutes trademark infringement. Unauthorized use of a trademark or service mark on or in connection with products and/or services in a way that is most likely to cause ambiguity, deceit, or error regarding the origin of the services is termed trademark infringement. Three essential components must be proven in order to prove trademark infringement in a company: "use," "in commerce," and "likelihood of confusion." Fair use or parody are the two main affirmative defences that defendants in a trademark infringement or dilution action may raise.

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how should i strike up a conversation with a girl i like

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Answer: You gotta start of slow by starting a convo with her

Explanation:

As of december 31, $2,500 of interest expense has accrued on a $50,000 note payable. The note payable and the accrued interest will become due and payable next year. How will the interest affect the adjustments at the end of the period?.

Answers

Because the cost of interest is tied to the present time, interest expenses should be raised.

What is interest?It is customary to express interest as a percentage, such as an annual percentage rate. Interest is the cost of borrowing money (APR).Lenders may be paid interest for using their funds, while borrowers may be required to pay interest.Depending on the principle amount, interest is frequently thought of as compound interest or simple interest (based on principal and previously-earned interest).Typical examples of goods that have interest connected to them are credit cards, mortgages, auto loans, personal loans, savings accounts, and penalty assessments.Interest rates are significantly influenced by the Federal Funds Rate, a key macroeconomic policy indicator set by the Federal Reserve.

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Kingery corporation has current assets of $1,800,000 and current liabilities of $750,000. if they pay $250,000 of their accounts payable what will their new current ratio be?

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Answer:

the new current ratio will be 1:1,5

wealthy countries are often those with greater opportunities and advantages and often those opportunities and advantages are based on resources and strategic location.

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wealthy countries are often those with greater opportunities and advantages and often those opportunities and advantages are based on resources and strategic location True.

How does the study of geography serve as a link between the social and natural sciences?

We can start to comprehend the connections and elements that bind our human groups together by studying geography.

What has made it possible for manufacturing to move from developed to underdeveloped nations globally?

The lowering of trade barriers, economic liberalization, and opening up to FDI were all factors that contributed to the global shift. Asia has attracted labor-intensive manufacturing due to its big labor pool and willingness to work for cheap pay.

Which of the following sentences accurately sums up the Sahel?

It is a region of dense rainforest that bars access to West Africa.

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Marketing, sales, and service careers are easy to spot! You’ve seen and heard thousands of sales messages in your life. In your opinion, what makes a sales message effective, and what makes one ineffective? Explain what kinds of skills you think you would need to create successful marketing or sales pieces.

Answers

The things that makes a sales message to be effective is the convincing tone, and what makes one ineffective is not been convincing.

What is sales message?

The sales message can be described as the message that is been used by the company so as to be able convince the potential buyers as well was the existing buyer about the product and the services of the company, however this message help to draw the attention of the customers to the company.

In conclusion, the sales message is very essential as a way the company can get along with the customer as well as the potential customer.

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NOTE; This is a complete question , no given option , even on the internet.

Anne and katherine are both saving money from their summer jobs to buy bicycles. If anne had $150 less, she would have exactly as much as katherine. And if katherine had twice as much, she would have exactly 3 times as much as anne. How much money have they saved together?.

Answers

Anne and katherine both have saved 750$ together.

Katherine would have three times as much money as Anne had if Anne had only $150 less. Simplify by turning the following sentence into an equation:

A= Anne.  K= Katherine

(A– 150) = K

3A– 450 = K

And if Katherine had three times more than Anne, she would have two times as much

2K= 3A

The final equation can be resolved by changing K with 3A - 450.

2(3A– 450) = 3A

6A– 900 = 3A

–900 = –3A

300 = A

Now solve for k in the same equation using 300 in place of A:

2K= 3(300)

2K= 900

K= 450

Anne and Katherine have a combined total of 300 + 450 = 750$

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the accompanying data came from a study of collusion in bidding within the construction industry ("detection of collusive behavior," j. of construction engr. and mgmnt, 2012: 1251–1258).

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No .of bidders                No. of contracts         Rel. freq

 2                                        7                         0.064815

 3                                       20                          0.185185

 4                                26                                0.240741

 5                                 16                                0.148148

 6                                  11                                0.101852

 7                                   9                               0.083333

 8                                   6                                0.055556

 9                                   8                                 0.074074

 10                                    3                                0.027778

 11                                    2                                  0.018519

     total                                    108                                     1

(a)+P(almost five bidders) is = P(es) +0.148148

= 0.064815 + P(2)+P(3) + P(4)+P(5)

= 0.638889

    0.6389

*P(at least five bidders) is

P(as)

= P(5) + P(6) + - + P(11)

H

0.148148 + 0.101852 + - +0.018519

14 0.509259

0.5093

(b) P(5≤ X ≤ 10) is = P(5) + P(6)  + P(0)

= 0·148148+

= 0.490741

0.4907

P(s  >  x <  10) is

= P(6) + P(+)+P(8) + P(9)

0.101852 + 0.074074

0.314815

0.3148.

The histogram is skewed to right and there do not appear any outliers.

Construction bidding is the process of submitting proposals bids to undertake or manage the implementation of a construction project. The process begins with estimating costs from engineering drawings and bills of materials.

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You are planning to place your money in safe government securities, which currently offer a 4% riskless rate of return. Before making this investment, an entrepreneur approaches you and asks you to purchase her new business venture, fastdrop, a delivery service for legal documents that would produce a single cash inflow of $80,000 at the end of the year. You have determined that 6% is an appropriate risk premium for this investment. How much would you be willing to pay for fast drop?.

Answers

The first step is to determine the opportunity cost.

Opportunity cost = Risk free rate + Risk Premium

10% = 4% + 6%

The second step, given the opportunity cost of 10%, is to determine that the economic value of this investment is:

$80,000/1.10 = $72,727

What is Opportunity cost?

The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a different activity is known as the opportunity cost in price determination. Simply put, it means that if you choose one activity, you forfeit the chance to do another.

Therefore,

You are planning to place your money in safe government securities, which currently offer a 4% riskless rate of return. Before making this investment, an entrepreneur approaches you and asks you to purchase her new business venture, fastdrop, a delivery service for legal documents that would produce a single cash inflow of $80,000 at the end of the year. You have determined that 6% is an appropriate risk premium for this investment. How much would you be willing to pay for fast drop?.

The first step is to determine the opportunity cost.

Opportunity cost = Risk free rate + Risk Premium

10% = 4% + 6%

The second step, given the opportunity cost of 10%, is to determine that the economic value of this investment is:

$80,000/1.10 = $72,727

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Answer:

The first step is to determine the opportunity cost.

Opportunity cost = Risk free rate + Risk Premium

10% = 4% +6%

The second step, given the opportunity cost of 10%, is to determine that the economic value of this investment is:

$80,000/1.10 = $72,727

What is Opportunity cost?

The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a different activity is known as the opportunity cost in price determination. Simply put, it means that if you choose one activity, you forfeit the chance to do another.

Therefore,

You are planning to place your money in safe government securities, which currently offer a 4% riskless rate of return. Before making this investment, an entrepreneur approaches you and asks you to purchase her new business venture, fastdrop, a delivery service for legal documents that would produce a single cash inflow of $80,000 at the end of the year. You have determined that 6% is an appropriate risk premium for this investment. How much would you be willing to pay for fast drop?.

The first step is to determine the opportunity cost.

Opportunity cost = Risk free rate + Risk Premium

10% = 4% +6%

The second step, given the opportunity cost of 10%, is to determine that the economic value of this investment is:

$80,000/1.10 = $72,727

Background, findings, staffing, and budget are examples of ______________ a. talking headings b. functional headings c. generic headings d. transitional headings

Answers

Background, findings, staffing, and budget are examples of functional headings.

Functional headings provide descriptions of broad subjects or tasks. They only give the viewers the report's summary; they don't give them enough context. Talking headings offer more descriptive headings that outline the document's content. Content is organized using headings and subheadings to help readers. A heading or subheading introduces the material that will follow at the top of a page or section. The main ideas and supplementary ideas in the paper are represented by headings and subheadings. They represent importance levels visually. Readers are helped to separate the essential points from the remainder of the text by differences in text format. Subheadings typically aren't as large or obvious as headings.

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Types of Social Enterprises

Answers

1-Credit union. Definition: Finance co-operative that helps
2- people save and borrow money.
3-Non-Governmental Organisations with commercial arms.
4-Social firm.
5-Community-based organisation

Police and prosecutors tend to have the most trouble finding witnesses in cases involving domestic violence, gangs, or drugs.

Why might witnesses in those cases avoid coming forward?
Instead of working on a case-by-case basis to convince one witness to testify, how could police encourage more witnesses to testify in general?

Answers

Answer: 123

Explanation:

Why because if you work it our it will make a lot of sense

while traveling on a business trip with a well-known train company, carlos's baggage was misplaced. the train company promised to deliver his baggage to him within the week. however, two weeks passed and he did not receive either his baggage or any kind of compensation. when composing his claim to the train company, carlos should

Answers

when composing his claim to the train company, carlos should  write a direct and short email.

What happens if baggage  is lost in train?

IN case of robbery of baggage, theft / dacoits in running trains, you'll be able approach prepare conductors/coach attendant/guards or GRP escort. They will donate you the FIR Forms ,which may be properly filled in and given over to them. The complaint will at that point be sent to the Police Station for fundamental activity.

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When handling an ethical dilemma, managers should select the option that will most likely?

Answers

When handling an ethical dilemma, the managers should select the option that will most likely pass the various ethics tests.

What is an ethical dilemma?

It is also called an ethical paradoxes or moral dilemmas. Basically, the ethical dilemma refers to those situations in which an agent stands under two conflicting moral requirements in whic none of which overrides the other.

In an organizations, it is often times called an ethics and it is like standards of what is expected of an organization's employees in its relationship with outsiders. Every employee of an organization is expected to familiarize with the ethics of his or her company as the case may be.

However, in conclusion, if there are ethical dilemma, a manager is expected to pass the various ethics test instituted by the organization as this will guide him or her towards making the right decisions.

Missing options "A. Set the best example for the employees B. Pass the various ethics tests C. Builds strength in the organization D. All of the above"

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along a linear demand curve, as price falls a) the price elasticity of demand is constant, but the slope of demand falls. b) the price elasticity of demand approaches zero, but the slope is constant. c) the price elasticity of demand moves away from zero. d) the price elasticity is the same as the slope of the demand curve.

Answers

Although the slope is constant, the price elasticity varies. A linear demand curve's slope is calculated by dividing the change in price (shown on the Y-axis) by the change in demand (shown on X-axis).

The Slope always remains constant, just like in the linear demand curve. This indicates that the price elasticity of demand has varied depending on the viewpoint. However, as prices fall, the price elasticity of demand decreases and eventually approaches zero, with the amount required remaining constant. This demonstrates that the price elasticity of demand is inelastic and is decreasing. When a specific amount of an item is used, the price does not raise demand. For instance, salt, sugar, etc.

According to the law of demand, the quantity required will vary in the opposite direction in response to a change in price. How much, though, will it alter? For instance, it would seem logical to anticipate that a 10% increase in the cost of a doctor's visit would result in a different percentage change in quantity requested than a 10% increase in the cost of a Ford Mustang.

But how big of a difference is there?

We use the idea of elasticity to demonstrate how sensitive quantity required is to a change in price. The percentage change in quantity requested of a certain item or service divided by the percentage change in price is known as the price elasticity of demand for that good or service, or eD. the cost of that commodity or service, with all other factors being the same.

Does the demand elasticity follow a linear demand curve?

We shall show that elasticity decreases with price along a linear demand curve, which is a straight line with a constant slope. In actuality, as we proceed down a straight line demand curve with a downward slope, the elasticity goes numerically from infinity to zero.

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A shortage in the market for economics textbooks will ___________ the price of textbooks.

Answers

A shortage in the market for economics textbooks will increase the price of textbooks.

What is the relationship between price and demand?

The amount demanded is always inversely related to the price of the commodities, according to the law of demand, which is a fundamental tenet of economics.

In other words, when the price rises, less will be demanded, and vice versa.

The quantity that consumers desire is determined by the price of an item or service in a market.

When non-price elements are taken out of the equation, it follows that higher prices lead to lower quantities demanded and lower prices lead to higher quantities demanded.

Only highly essential goods have increased in price as demand increases.

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A company records the effects of transactions for a particular item in a(n) ______.

Answers

Answer:

Journal. Record of all transactions affecting a company.

the honest leadership and open government act of 2007 requires lobbyists to report their activities annually. broadened the definition of lobbyist and require detailed disclosure of spending on lobbying activity, including who is lobbied and what bills are of interest. significantly changed the culture in washington. requires that all pork spending proposals be reported to the president. limits spending by lobbyists to $100,000 per quarter.

Answers

The Closing the Revolving Door section of the Honest Leadership and Open Government Act of 2007 (Sec. 101) amends the House of Representatives' rules by adding Rule XXVII (Disclosure by Members and Staff of Employment Negotiations).

Requires Members to forbid their employees from working to influence legislation on behalf of the Member's spouse if the staff member is a registered lobbyist, works for or is hired by a registered lobbyist.

How was the definition of a lobbyist altered by the Lobbying Disclosure Act of 1995?

On December 19, 1995, President Clinton signed the Lobbying Disclosure Act of 1995 into law, which became effective on January 1, 1996. By altering reporting standards, the Act increased the number of registered lobbyists and the amount of information they must provide.

Full Public Disclosure of Lobbying - (Sec. 201) Modifies the Lobbying Disclosure Act of 1995 (LDA) to require the following: (1) quarterly reporting of lobbying disclosure reports rather than semiannual reporting; (2) electronic filing; (3) disclosure of registered lobbyist on contributions; and (4) disclosure by registered lobbyists of all prior executive and congressional employment.

Title III: Implementing Restrictions on Lobbying - (Sec. 301) amends the LDA to raise the civil penalty for willful disregard of any LDA rule from $50,000 to $100,000.

establishes criminal consequences for willful and corrupt noncompliance, including fines, up to five years in jail, or both.

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who answers the three basic economic questions in a business

Answers

Answer:

Are the following,

Explanation:

what will be produced

how will it be produced

The slope of the treasury yield curve normally reflects increasing interest rates over time, and represents the cost of borrowing for the us government. True or false?.

Answers

True. The slope of the treasury yield curve normally reflects increasing interest rates over time and represents the cost of borrowing for the us government.

Treasury Yield Curve: A line graph that compares the yields of short-term Treasury bills to the yields of long-term Treasury notes and bonds is known as the U.S. Treasury yield curve. The figure depicts the link between interest rates and the maturities of fixed-income securities issued by the US Treasury.

The yield curve is a crucial monetary policy transmission tool, making it an essential economic indicator. a source of information on forecasts for inflation, economic growth, and interest rates by investors. a factor that affects banks' profitability.

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To construct a high-quality, custom home within five months at costs not to exceed $150,000 is best classified as.

Answers

To construct a high-quality, custom home within five months at costs not to exceed $150,000 is best classified: An objective.

In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost.

Cost” in its singular form refers to the sum of a total group; “costs” refers to all of the pieces within that group. For example, “the cost of a service includes material costs and labor costs.” In accounting, costs are the monetary value of expenditures for supplies, services, labor, products, equipment and other items purchased for use by a business or other accounting entity. This is the amount shown as a price on the invoice and recorded as an expense or asset value in the accounting records.

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When a government fines and/or imprisons persons convicted of using illegal drugs, the government is attempting to decrease the illegal drug trade by shifting the ________ curve for illegal drugs ________.

Answers

When a government punishes and/or imprisons those who are found guilty of using illicit drugs, it is trying to stop the illegal drug trade by moving the demand curve for illegal substances to the left.

The government wants people to abstain from using illegal narcotics, thus in order to stop individuals from doing so, it is punishing those who do. And for this reason, individuals won't use those illegal drugs or won't buy them as much, which will naturally move to the "demand curve" to the left.

The demand curve is a graphical depiction of the connection between the cost of a commodity or service and the amount demanded over a specific time period. A common representation will have the price on the left-hand vertical axis and the amount needed on the right-hand horizontal axis.

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saul goodman is shopping for a gently used suv. a used-car dealer offers to sell the vehicle to saul for $7000 down and $725 per month for 60 months. if the quoted rate on car loans is currently 4.8%, what is the price of the car implied by the dealer’s offer?

Answers

Price of the car = $45605.525

price of the car =  Down payments +  present value of 60 monthly payments

present value of 60 monthly payments =  [tex]P [\frac {1 - \frac {1}{(1+r)^n}}{r}][/tex]

price of the car = $7000 + $725 [tex][\frac {1 - \frac {1}{(1+0.048)^{60}}}{0.048}][/tex]

price of the car = $7000 + $725(53.249)

price of the car = $45605.525

What is Loan?

A loan could be a shape of debt caused by an person or other entity. The lender—usually a enterprise, monetary institution, or government—advances a sum of cash to the borrower. In return, the borrower concurs to a certain set of terms counting any back charges, intrigued, reimbursement date, and other conditions.

It can be classified into three main categories, namely, unsecured and secured, conventional, and open-end and closed-end loans.

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What is a benefit of job shadowing?

A. It guarantees a job in the future.
B. It is a chance to gain experience.
C. It is an opportunity to earn money.
D. It provides limited opportunities to network.

Answers

A benefit of job shadowing is B. It is a chance to gain experience.

It is a type of on-the-job education in which an worker learns from a greater skilled colleague with the aid of following them and observing them.

Job shadowing is a form of on-the-task education that allows an interested employee to observe and carefully study any other employee acting the position. This type of studying is commonly used to onboard new personnel into an employer or into a brand new function.

Process shadowing positions do not offer any sort of charge when you consider that, in maximum instances, you aren't appearing a awesome deal of work. however, many internships pay their interns for the time they paintings.

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A retail clothing store offers customers an opportunity to open up a credit card during checkout. one location of the retail clothing store states that the number of credit cards, a, that are openedt months since january can be modeled by the function a(t) = 10 2t. the number of credit cards opened at another location, b, is defined by the function b(t) = 25 − t. what is an expression that can be used to determine the total amount of credit cards opened at the two locations? (a b)(t) = 35 t (a b)(t) = 35 3t (a − b)(t) = −15 t (a − b)(t) = −15 3t

Answers

An expression that can be used to determine the total amount of credit cards opened at the two locations is: (A+B) (t)=35+t.

Expression

Expression for location A

Location A total number of credit card=A(t)=10+2t

Expression for location B

Location B total number of credit card=B(t)=25-t

Hence,

Total amount of credit card:

(A+B) (t)=(10+2t) + (25-t)

(A+B) (t)=10+2t+25-t

(A+B) (t)=35+t

Therefore an expression that can be used to determine the total amount of credit cards opened at the two locations is: (A+B) (t)=35+t.

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marty works at an organization with a clear chain of command. the major decisions are relegated to top managers. marty and his co-workers have strict performance standards. managers at his organization monitor the work of employees to make sure they are staying on track. this is an example of a decentralized organization. assessment question

Answers

This assertion is incorrect. This is an illustration of a centralized organization.

A centralized organization is one in which all operations and decisions are made at the executive or highest level of the organizational hierarchy. Rarely can managers and staff in the organization's lowest echelons initiate or carry out decisions without the executive's permission.

An organization can be either centralized or decentralized.

Strategic planning, goal-setting, budgeting, and talent deployment are often carried out by a single senior leader or leadership team in centralized businesses. In contrast, official decision-making authority is dispersed across several people or teams in decentralized organizations.

What benefit does a centralized organization provide?

Reduced costs, more productivity, lower regulatory costs, and more flexibility and agility overall are the four main benefits of centralization.

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a small company wishes to set up a fund that can be used for technology purchases over the next 6 years. their forecast is for $16,000 to be needed at the end of year 1, decreasing by $2,000 each year thereafter. the fund earns 11% per year. how much money must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal?

Answers

$49,094.23 must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal.

What is fund?Money that is available for spending is referred to as "funds," particularly when it is handed to a person or organization for a specific objective. The concert will help generate money for AIDS research. A fund is a sum of money that has been accumulated or set aside for a specific use.Your money and the money of other investors are combined when you invest in a fund. Then, on your behalf, a fund manager purchases, holds, and sells investments. All funds are composed of a variety of investments; this spreads or diversifies your risk.

Money that should be deposited to the fund at the end of year 0:

= 16000/1.11 + 14000/[tex]1.11^2[/tex] + 12000/[tex]1.11^3[/tex] + 10000/[tex]1.11^4[/tex] + 8000/[tex]1.11^5[/tex] +

  6000/[tex]1.11^6[/tex]

= 16000/1.11 + 14000/1.2321 + 12000/1.367631 + 10000/1.51807 +    8000/1.68505 + 6000/1.87041

= 49,094.223001081

= $ 49,094.23

Hence, $49,094.23 must be deposited to the fund at the end of year 0 to just deplete the fund after the last withdrawal.

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if no deposite or withdraws are made

Answers

No deposits and withdrawals: The bank pays interest at 5.75% per annum compounded every 6 months.

If you are wondering what is the difference between deposit and withdrawal, the truth is that they are quite the opposite. A deposit is a money you put in a bank account to keep it safe until you need it. Withdrawals are money withdrawn from your account.

The definition of a deposit is something left for a specific purpose, such as storage, payment, or something left behind as a result of a natural disaster. An example of a deposit is money added to a savings account. An example of a deposit is gold left on gravel at the bottom of a stream.

Withdrawals include withdrawals from your bank account, savings plan, annuity, or trust. In some cases, you must meet the conditions for withdrawing funds without penalty, and the penalty for early withdrawal usually occurs when you violate the provisions of the investment contract.

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