With an inflation rate of 9 percent, prices would double in how many years?

Answers

Answer 1
Answer:

Answer:

8 years

Explanation:

the rule of 72 calculates how long it takes for an amount to double given interest rate

72 / 9% = 8 years

Answer 2
Answer:

Final answer:

The 'Rule of 72' can be used to estimate how long it would take for prices to double with an inflation rate of 9 percent. According to this rule, it would take approximately 8 years.

Explanation:

In order to calculate how long it would take for prices to double with an inflation rate of 9 percent, you can use the 'Rule of 72'.

The Rule of 72 is a simplified way to estimate the number of years required to double the money at a given annual rate of return or inflation. According to this rule, you simply divide 72 by the annual rate of return or inflation. Therefore, using the Rule of 72, it would take approximately 8 years (72 divided by 9) for prices to double with an inflation rate of 9 percent.

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Related Questions

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The 15​-year, ​$1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is ​$1,085​, and the​ market's required yield to maturity on a​ comparable-risk bond is 10 percent. a. Compute the​ bond's yield to maturity.
b. Determine the value of the bond to you given the​ market's required yield to maturity on a​ comparable-risk bond.
c. Should you purchase the​ bond?

Answers

Answer:

A) YTM 7.06%

B) $847.8784

C) No I will not as it is overpriced.

Explanation:

A) the yield to maturity is calculate as the rate at which the present value of the coupon payment and maturity equals the market price.

It is done by approximation or using excel or financial calculator.

YTM using goal seek excel: 0.070630268 = 7.06%

Using this rate rounded:

Present value of the coupon payment.

C * (1-(1+r)^(-time) )/(rate) = PV\n

C: 1,000 x 8% = $ 80.00

time 15 years

YTM: 0.076

80 * (1-(1+0.0706)^(-15) )/(0.0706) = PV\n

PV $725.8798

(Maturity)/((1 + rate)^(time) ) = PV  

Maturity: $1,000

time 15 years

YTM: 0.076

(1000)/((1 + 0.0706)^(15) ) = PV  

PV   359.41

PV coupon $725.8798  + PV maturity  $359.4110 = $1,085.2909

B) Present value of the bond at comparable-risk YTM:

C * (1-(1+r)^(-time) )/(rate) = PV\n

C: 1,000 x 8% = $ 80.00

time 15 years

comparable risk rate: 0.1

80 * (1-(1+0.1)^(-15) )/(0.1) = PV\n

PV $608.4864

(Maturity)/((1 + rate)^(time) ) = PV  

Maturity $ 1,000.00

time 15 years

comparable risk rate: 0.1

(1000)/((1 + 0.1)^(15) ) = PV  

PV   239.39

PV coupon $608.4864 + PV market  $239.3920 = $847.8784

I will not purchase as it is overvalued:

1,085 - 847.88= 237.12

Final answer:

a. The bond's yield to maturity is 8.46%. b. The value of the bond to you is $800. c. It may not be a good investment to purchase the bond.

Explanation:

a. To compute the bond's yield to maturity, we can use the formula: Yield to Maturity = (Annual Interest Payment + (Face Value - Current Price) / Number of Years) / ((Face Value + Current Price) / 2). Plug in the values we have: Annual Interest Payment = $1,000 * 8% = $80, Face Value = $1,000, Current Price = $1,085, Number of Years = 15. Yield to Maturity = ($80 + ($1,000 - $1,085) / 15) / (($1,000 + $1,085) / 2) = 8.46%.

b. To determine the value of the bond to you, we can use the formula: Value of Bond = Annual Interest Payment / Yield to Maturity. Plug in the values we have: Annual Interest Payment = $80, Yield to Maturity = 10%. Value of Bond = $80 / 10% = $800.

c. Should you purchase the bond? Since the current market price of the bond is higher than the value of the bond to you, it may not be a good investment. You would be paying more than the bond's actual value, which would lower your potential return on investment.

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Vaughn Manufacturing borrowed $399000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31?

Answers

Answer:

Interest recognized is $35,910

Explanation:

The computation of interest recognized is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $399,000 × 12% × (9 months ÷ 12 months)

= $35,910

The 3 months is calculated from April 1 to December 31

Hence, the interest i.e. to be recognized is $35,910

Sandersen Inc. sells minicomputers. During the past​ year, the​ company's sales were million. The cost of its merchandise sold came to ​$ ​million, and cash operating expenses were ​$​; depreciation expense was ​$​, and the firm paid ​$ in interest on its bank loans.​ Also, the corporation paid ​$ in the form of dividends to its own common stockholders. Calculate the​ corporation's tax liability by using the corporate tax rate structure in the popup​ window,

Answers

Question Completion:

Sandersen Inc, sells minicomputers. During the past year, the company's sales were 3.00 million. The cost of its merchandise sold came to 2.00 million, and cash operating expenses were 400,000; depreciation expense was 100,000, and the firm paid 150,000 in interest on its bank loans. Also, the corporation paid 25,000 in the form of dividends to its own common stockholders.

Calculate the corporation tax liability.

The corporate tax rates are listed here:

15% $0-$50,000

25% $50,001-$75,000

34% $75,001-$10,000,000

35% over $10,000,000

Answer:

Sandersen Inc.

Computation of the Corporation's Tax Liability:

Taxable profit = $350,000

15% $0-$50,000                    $7,500 ($50,000 * 15%)

25% $50,001-$75,000             6,250 ($25,000 * 25%)

34% $75,001-$10,000,000    93,500 ($275,000 * 34%)

35% over $10,000,000         0

Total Tax Liability =          $107,250

Explanation:

Data and Calculations:

Sales Revenue          $3,000,000

Cost of goods sold     2,000,000

Gross profit               $1,000,000

Operating expenses    400,000

Depreciation expense  100,000

Operating profit        $500,000

Interest expense         150,000

Profit before taxes   $350,000

Income Taxes             107,250

Profit after taxes     $242,750

Dividend                      25,000

Retained Earnings  $217,750

Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers, and podiatrists say the trend is leading to many stylish young girls with grown-up foot problems. To many parents and podiatrists, shoe manufacturers who develop and market adult-styled shoes to this group are not operating at a(n) _____ responsibility level.

Answers

Answer:

Shoe manufacturers are not operating at an corporate social responsibility level.

Explanation:

Corporate social responsibility is that kind of business model which is self regulating in the nature. This is also know as corporate citizenship , according to this model company's try to operate their business in such ways that do no harm to the environment or negatively affect the society but here the motto of the company's are to enhance the society, environment , and the customer satisfaction. Company's working on this approach try to be accountable for their actions towards the consumer and society . In this question shoe manufacturers are not operating at an corporate social responsibility level.

Answer: Ethical

Explanation: The shoe manufacturers who develop and market adult-styled shoes to this group are not operating at an ethical responsibility level of the pyramid of corporate social responsibility. The ethical aspect deals with going to great extents across legal requirements to meet the expectations of society. Social responsibility is the duty of business to do no harm to society. In other words, in their daily operations, the shoe makers were not concerned about the welfare of their customers and were not mindful of how their actions affected them later on. Therefore, they weren't operating at an ethical level.

Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers: Engineering $1,000,000 Setups 900,000 Machining 2,000,000 Inspection 800,000 Providing space 250,000 Providing utilities 180,000 Activity drivers for each activity have been identified and their practical capacities listed: Machine hours 25,000 Setups 200 Engineering hours 5,000 Inspection hours 2,500 The costs of facility-level activities are assigned using machine hours. What is (are) the product-level activity(ies)? a.engineering b.inspecting c.setups d.All of these choices are correct.

Answers

All of the given options are unit-level activities. So, option (d) is the correct answer.

What are unit-level activities?

Activities at the unit level are carried out in order to make the product. There are four steps in this manufacturing process:

1. engineering

2. setups

3. machining

4. inspecting

Unit-level activities are dependent on the number of units generated, which means that when the number of units produced increases, more expenditures are allocated.

Engineering, setups, and inspections are all done in batches in this situation, hence they are batch-level operations.

For more information about unit-level activities, refer below

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Answer:

Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers:

Explanation:

A person who is confident, focused and highly determined would best be described with which of the following terms?

Answers

The correct answer of the given question above would be INDOMITABLE. A  person who is confident, focused and highly determined is best described as indomitable. An indomitable person is one who is not easily defeated. This could also mean as someone who is strong, brave and determined. 
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