The best course of action is to employ an expansionary fiscal policy to stimulate the economy during recessions and a contractionary fiscal policy to combat rising inflation.
What is the 2022 inflationary factor?Increased transportation and commodity prices, which are expensive inputs for completed goods, are stressed by the supply chain. Rising food prices drove low-income consumers to cut back on their purchases of other commodities, which slowed economic growth in nations where food prices made up a significant portion of the inflation increase.
What effects does a high inflation rate have?Savings become less enticing when inflation is high because it gradually lowers the value of money for purchases. That potential might lead to an increase in consumer spending and business investment. As a result, as inflation rises, the unemployment rate typically first decreases.
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rundle company calculated its return on investment as 10 percent. sales are now $420,000, and the amount of total operating assets is $440,000. required if expenses are reduced by $33,000 and sales remain unchanged, what return on investment will result? note: round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45). if both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result?
The operational expense must drop by $ 149333.33.
Given:
10% of an investment equals 0.1 in return.
Total revenue: $300,000
Operating assets totaling $ 320000.
Reduction in costs equals $28,000
a) The formula for calculating return on investment is
Net income minus operational assets equals return on investment.
when the values are substituted, we obtain
1 = Net income / 320000 dollars
or
Net profit = 0.1 x 320000 $
or
Total revenue: $32,000
The amount earned, or the rise in net income, comes from the decrease in costs.
Consequently, the net income is equal to $ 32,000 plus $ 8,000, or $ 60,000.
now,
The current net income's return on investment will be
Return: $60.000 / $320,000
or
ROI is 18.75%
b) in the case of the second instance's condition.
There are
Result: 18.75%
Total revenue: $32,000
Return: Net income divided by operational assets
or
18% of an operational asset is $32,000.
or
Operating asset = 32000 divided by 1.1875
or
Operating assets are equal to $17066.67.
Now, the operational asset's reduction from the real asset is equal to $ 320000 - $ 170666.67 ($149333.33).
As a result, the operational expense must drop by $ 149333.33.
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dunder mifflin paper company, inc. ignores the external costs it generates in its production. which of the following will be true at the competitive market equilibrium output? group of answer choices price will be greater than the marginal social cost. price will be less than the marginal social cost. price will be equal to the marginal social cost. marginal private cost will be equal to the marginal social cost. marginal private cost will be greater than the marginal social cost.
The competitive market equilibrium output: Price will be greater than the marginal social cost.
What is market equilibrium?Market equilibrium is a state where the quantity of goods or services supplied by producers is equal to the quantity of goods or services demanded by consumers. This is an important concept in economics because it means that prices and quantities are stable and there is no shortage or surplus of goods or services in the market. In other words, the market is in balance. In a market equilibrium, buyers and sellers are both satisfied with the prices and quantities of goods or services being exchanged, and no one has an incentive to change their behaviour. This equilibrium is reached when the demand for a good or service is equal to the supply. When the market is in equilibrium, there is no pressure for prices to change, and the market is in a state of balance.
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Complete Question:
Dunder mifflin paper company, inc. ignores the external costs it generates in its production. which of the following will be true at the competitive market equilibrium output? group of answer choices
A) price will be greater than the marginal social cost.
B) price will be less than the marginal social cost.
C)price will be equal to the marginal social cost.
D)marginal private cost will be equal to the marginal social cost.
E)marginal private cost will be greater than the marginal social cost.
what is the reorder point if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30? a. 150 b. 400 c. 80 d. 200 e. 50
The reorder point is 80, if the usage rate is 10 units per day, the order lead time is five days, and the safety stock is 30. Hence, option C is correct.
What is the meaning of reorder point?A reorder point, or ROP, is a particular level at which the stock requires replenishment. In order to prevent stock shortages, it advises when to place an order.
The inventory level that prompts a replenishment of that specific stock is known as the reorder point. When a company's inventory of a product drops below a certain level, they must place a new order for the product.
10 * 5 = 50 units
These 50 units are prepared in a week and 30 units were as safety stock.
50 + 30 = 80
Therefore, Option C is correct.
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although firms may pursue a variety of goals, the assumption that primary goal of strategy is to maximize profits over the long term may be justified by:
The outside pressures on corporations for profitability that arises from (i) sturdy opposition in product markets and (ii) the danger that corporations that don't maximize income could be received via way of means of bureaucracy that do.
The required details for product markets in given paragraph
The product marketplace is the marketplace where very last goods or services are bought to organizations and the public sector. Focusing at the sale of completed goods, it does now no longer encompass buying and selling in uncooked or different intermediate materials. Related, however contrasting, phrases are economic marketplace and labor marketplace. Product marketplace regulation is a time period for the setting of regulations upon the operation of the product marketplace. According to an OECD rating in 1998, English-speak me and Nordic countries had the least-regulated product markets within side the OECD. Product advertising and marketing is sub-area of advertising and marketing this is chargeable for crafting messaging, go-to-marketplace flow, and advertising of a product.
Product advertising and marketing managers also can be worried in defining and sizing goal markets in conjunction with different commercial enterprise stakeholders such as commercial enterprise development and sales in addition to technical features such as product management.
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u.s. gaap requires companies to disclose which of the following related to operating segments? multiple select question. a description of the management personnel of each reportable segment. how the entity's reportable segments compare to industry averages. how reportable segments are determined. a description of products or services that generate revenue for each reportable segment.
The following details must be provided in intermediate results for each reporting entity in accordance with U.S. GAAP: revenues from non-internal consumers. Revenues from segments. Profit or loss by segment.
What would you say is a revenue?According to the definition, revenue is the total sum of money obtained through conducting trade and commerce like sales. It is sometimes referred to as sales on the income statement. It is known as the top line since it appears first on any company's income statement.
Do sales constitute revenue?Some businesses incorrectly conflate the phrases sales and revenue. Despite the fact that sales are a source of revenue, not all revenue does. In reality, they are the same for many businesses. However, some businesses consistently generate additional revenue through their daily operations.
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the dollar amount of sales plus any other income received from sources like interest and dividends is called:
The dollar amount of sales plus with the any other income received from the sources like interest and dividends is called revenues.
Revenue is the money which is generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line figure which is from costs which are subtracted to determine net income.
However, a business's revenue is its gross income which is before subtracting any expenses. Thus, the profits and the total earnings define revenue and it is the financial gain through sales or any services which is rendered.
Hence, the revenues can be the dollar amount of sales plus any other income received from sources like interest and dividends.
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the revenue that is forgone from an alternative use of an asset, such as cash, is called a.differential profit b.sunk cost c.differential revenue d.opportunity cost
The revenue that is forgone from the alternative use of an asset, such as cash, is called opportunity cost.
What is the asset?A resource having economic worth that a person, business, or nation possesses or controls with the hope that it would someday be useful is referred to as an asset. The balance sheet of a business lists assets. They are divided into four categories: tangible, financial, fixed, and current.
The opportunity cost is the amount of time spent learning and the money that could be used elsewhere. When a farmer decides to grow wheat, there is an opportunity cost associated with not doing so or using the resources in another way (land and farm equipment)
Therefore, Thus, option (D) is correct.
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according to the video, which system establishes currency values based on supply and demand?
Answer: A country with a floating exchange rate is one whose currency price is determined by the forex market based on supply and demand in relation to other currencies. A fixed exchange rate, on the other hand, is set fully or primarily by the government.
Explanation: Which system bases money values on supply and demand?
Under a floating exchange rate system, the value of a nation's currency is set by the supply and demand for that currency in exchange for another in a parallel market run by significant foreign banks.
What is a variable exchange rate system?
In macroeconomics, a flexible exchange-rate system is a monetary system that permits the exchange rate to be determined by supply and demand. Every currency area must
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an intense struggle to gain market share is a distinguishing characteristic of what type of market?
An intense struggle to gain market share is a distinguishing characteristic of oligopoly.
What is an oligopoly in a market?In a market structure known as an oligopoly, a few major sellers or producers control the majority of the market or industry. In order to increase profits, which can result in corporate collusion, oligopolies frequently emerge. A small number of suppliers control oligopoly markets, which are dominated by them.
All nations and a wide range of industries contain them. Other oligopoly markets are significantly less competitive, though they may at first appear to be so in some cases. Raised entry barriers, price-setting power, non-price competition, firm interdependence, and product differentiation are all characteristics of oligopoly.
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write a 2 sentences conflict that you have with others and how it was solve
A conflict is a situation where there is a disagreement over one or more issues involving two or more people. In school, while were playing football, there was a conflict about whether or not a particular tackle was fair or not. The referee helped to resolve this.
What are the benefits of resolving Conflict?Note that some of the advantages of settling disagreements or conflicts include:
Relationship Development: Personal and professional relationships can often suffer from unresolved conflicts.Achievement of Objectives: Ongoing conflict situations, particularly in commercial partnerships, can make it difficult to complete goals.Increasing CommitmentCreating New Insight.Learn more about Conflict;
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unter is seventeen years old. Under the Fair Labor Standards Act, Hunter cannot work a in a hazardous occupation. Ob for her parents. O in the agriculture industry. od in the entertainment industry,
Hunter is seventeen years old. Under the Fair Labor Standards Act, Hunter cannot work in a hazardous occupation.
The Fair Labor Standards Act (FLSA) specifies standards for minimum wage, overtime compensation, recordkeeping, and youth employment that are applicable to employees both in the private sector and in federal, state, and municipal governments.
For the majority of non-farm jobs, the minimum age is fourteen. However, minors of any age are allowed to distribute newspapers, take part in radio, television, film, or theater productions, work for their birth parents in their solely owned non-farm business (apart from hazardous occupation in the mining and manufacturing industries), and harvest evergreens to manufacture evergreen wreaths. Most of the data in Fair Labor Standards Act is kept in accordance with other regulations and guidelines and is of the type that employers typically retain in normal business operations.
The question is incomplete. The complete question is, "Hunter is seventeen years old. Under the Fair Labor Standards Act, Hunter cannot work
in the entertainment industry.in a hazardous occupation.for her parents.in the agriculture industry."Learn more about Occupation here:
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demand is elastic over a particular price-change range if the change in price causes no change in total revenue the change in price causes total revenue to change in the same direction the change in price causes total revenue to change in the opposite direction trick question: demand is never inelastic over any price-change range.
Demand is elastic over a particular price-change range if the changes in price causes total revenue to change in the opposite direction.
Option C is correct.
Elastic Demand:When the percentage change in quantity demanded exceeds the percentage change in price, demand is said to be elastic. That is assuming the interest is flexible over a specific cost range, a proportionate expansion in cost causes a more proportionate fall in amount requested, making the all out income fall ( Complete revenue=Price×Quantity requested).
In a similar vein, a proportionate decrease in price results in a proportionate increase in the quantity demanded, thereby increasing total revenue.
If the change in price is proportional to the change in quantity demanded, then demand is said to be unitary. For this situation the adjustment of cost causes no adjustment of absolute income.
If the change in quantity demanded is less than the change in price, demand is said to be inelastic. In this instance, total revenue shifts in the same manner as price does.
Question is incomplete. Missing option are:
Demand is elastic over a particular price-change range if
A: the change in price causes no change in total revenue
B : the change in price causes total revenue to change in the same direction
C : the change in price causes total revenue to change in the opposite direction.
D :demand is never inelastic over any price-change range.
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a firm has $60 million in equity and $40 million of debt, it pays dividends of 20% of net income, and it has a net income of $20 million. what is the firm's sustainable growth rate?
The firm's sustainable growth rate, given the net income, and the dividend payout percentage, is 26.67%.
How to find the sustainable growth rate?The highest rate of growth that a business or social enterprise may sustain without using more equity or debt to fund expansion is known as the sustainable growth rate (SGR).
The formula for the sustainable growth rate is therefore :
= Return on equity x ( 1 - Dividend payout percentage )
This is the same as:
= (Net income / Equity ) x ( 1 - Dividend payout percentage )
= 20 / 60 x ( 1 - 20 %)
= 1 / 3 x 80 %
= 26. 67 %
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the manufacturer of kingston freestanding greenhouses gives $100 as an incentive to a reseller's salespeople for each greenhouse they sell. this special incentive is known as
Kingston freestanding greenhouses' manufacturer rewards a reseller's salespeople with $100 for each greenhouse they sell. A spiff is the name given to this unique reward.
Explain about the manufacturer?A manufacturer is a person or business that turns raw materials into finished products using a variety of tools, machinery, and procedures, and then sells those products to consumers, wholesalers, distributors, retailers, or other manufacturers who can use them to make more complicated products.
Producing new things out of parts or raw materials is known as manufacturing. A manufacturer is any business that turns raw materials into finished goods. They promote these goods both to consumers and to other manufacturers who want to create more complex goods, including wholesalers, distributors, retailers, and merchants.
He works for a company that manufactures vehicle parts. to produce items in huge quantities, typically in a factory using machinery. Designing and producing items in compliance with any applicable product legislation's primary health, safety, or other objectives.
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during the middle ages, what was a grant of land from a lord to a vassal called?
Latin for "feudum," a fief was a key component of medieval contracts based on feudal law. It was a way for an overlord to give a vassal a type of property holding or other rights.
What was given to a lord's vassal?According to the terms of the feudal agreement, the lord was required to give his vassal a fief, to provide for his protection, and to administer justice in his court. In exchange, the lord was entitled to certain "incomes" known as feudal occurrences, as well as the power to demand the services related to the fief (military, judicial, and administrative).
What is the name of a lord's land?A lord of the manor's domain, also known as a demesne (/dmen, -min/ di-MAYN, -MEEN), consisted of all the land he retained and oversaw.
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Because of improvements in forecasting techniques, estimating the cash flows associated with a project has become the easiest step in the capital budgeting process.
a. true
b. false
In the capital budgeting process, estimating project cash flows is typically both the most crucial and challenging stage.
Given statement is False.
What are the key factors to consider in capital budgeting?To ascertain whether a capital investment is economically feasible, a number of capital budgeting analysis techniques can be applied. They are the Payback Period, Discounted Payment Period, Net Present Value, Profitability Index, Internal Rate of Return, and Modified Internal Rate of Return.Working capital requirements, project risk, tax considerations, the project's influence on the firm's liquidity, the projected rate of inflation, and expected salvage value are a few of the financial aspects that are thought to be significant when developing cash flow forecasts.Operating income before depreciation less taxes, with the working capital changes taken into account, is the computation. OCF (operating cash flow) is calculated as operating income (revenue minus cost of sales) plus depreciation, taxes, and any changes in working capital.To Learn more About capital budgeting process, refer to:
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In the city she lives in, the sales tax rate is 7. 15%. In another city, the sales tax rate is 6. 35%. How much more is she spending if she purchases the items in the city where she lives? round to the nearest cent.
In the city she lives in, the sales tax rate is 7. 15%. In another city, the sales tax rate is 6. 35%. She spending if she purchases the items in the city where she lives is round to 2%.
The sales tax rate is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase.
In the city where she lives the sales tax rate is 7. 15%. In another city, the sales tax rate is 6. 35% that means she loses their 2% of total annual salary amount.
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when conducting market research, what type of data is used when existing data is unavailable or inadequate?
When conducting market research, primary data is used when existing data is unavailable or inadequate
What is primary data in marketing research?The typical primary data that a marketer looks for is data that is tailored to their goals. Depending on how much and what kind of information the business is interested in, a primary data collection technique will be used. Surveys, focus groups, interviews, observational research, and field research make up the five main research methods.
Because primary data is specifically aimed at research objective, it can answer questions that secondary data may not be able to. Because it was compiled more recently, the material is more trustworthy and pertinent. Primary research is frequently used when people and organizations need to get feedback directly from target markets rather than relying on already available data.
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a.is there deflation? if yes, in what year does it occur? b.calculate the real wage rate in 2011 c.calculate the real interest rate in 2012
Deflation is when the prices of goods and services decrease across the entire economy, increasing the purchasing power of consumers.
What Causes Economic Deflation?Deflation occurs when prices for goods and services fall throughout the whole economy, boosting consumer purchasing power. It is the antithesis of inflation and can be viewed as being detrimental to a country because it can indicate an economic decline that could result in a recession or depression.
Deflation: Why is it a problem?Typically, deflation indicates a deteriorating economy. Because lowering prices result in less consumer spending, a key driver of economic growth, economists worry about deflation. When prices drop, businesses slow down their output, which results in job losses and pay freezes.
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according to various studies, how do trade protections, such as tariffs and quotas, tend to affect domestic society?
According to various studies, how do trade protections, such as tariffs and quotas, tend to affect domestic society
Some trade protections increase government revenues.The cost to consumers and society exceeds the gains to producers and the government.What is trade protection?Protecting native industry from unfair foreign competition is the goal of trade protectionism. Tariffs, subsidies, quotas, and currency manipulation are the four main instruments of trade protectionism.
The most popular protectionist tactic is to impose import taxes in the form of tariffs. As a result, imported goods' prices quickly increase. When compared to products made nearby, they lose some of their competitiveness.
The United States and other nations that import a lot benefit the most from this technique..
complete question
According to various studies, how do trade protections, such as tariffs and quotas, tend to affect domestic society?
Multiple select question.
Some trade protections increase government revenues.
The cost to consumers and society exceeds the gains to producers and the government.
A few producers benefit, but most suffer devastating losses.
Consumers and government benefit while producers experience dwindling profits.
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According to the keynesian view, the proper response to a severe recession would be.
Explanation:
A core principle of Keynesian economics is that the best way to pull an economy out of a recession is for the government to increase demand by infusing the economy with capital. In short, consumption (spending) is the key to economic recovery.
channel conflict occurred when american airlines decided to terminate its relationship with orbitz and expedia, two online ticketing and travel sites, and sell directly through aa direct connect. this is an example of
Channel conflict occurred when American airlines decided to terminate This is an example of disagreements over how profit margins are distributed among channel members.
When one channel member thinks another channel member is acting in a way that precludes the channel from accomplishing its goals, channel conflict results.
The margins earned for each channel member and the channel as a whole (revenue minus cost) define profits. The essential component of profitability is channel cost.
These expenses include those related to selling, advertising, and distribution for many kinds of marketing channels.
The margins received by each member and by the channel as a whole depend on how much channel members share these costs.
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the stock market crash triggered the beginning of the great depression, the worst economic crisis in u.s. history. which factor did not contribute to
the stock market crash triggered the beginning of the great depression, the worst economic crisis in u.s. history. which factor did not contribute to too many ordinary people owning stock.
What was one aspect of the Great Depression that did not contribute?The fall of international trade was bigger than the loss of global output of commodities and services during the Great Depression, which was a global phenomenon. Protectionist trade policies did not, however, alone produce the Great Depression, just as they did not cause the stock market crash. The economy runs on currency.
What led to the stock market meltdown during the Great Depression?The crisis, sometimes known as "Black Thursday," was preceded by a time of extraordinary prosperity and speculative expansion. Due to a surplus of supply and declining demand, producers were no longer able to easily sell their goods, which contributed to the economic crisis.
What one aspect of American society did the stock market crash and the depression affect?Early in the 1930s, business failures and unemployment spiked sharply as stocks kept falling. One out of every four workers did not have a job by 1932. Many Americans became destitute as a result of bank failures and the loss of life savings. Many Americans lost their homes because they had no employment and no funds.
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On January 2, Jasmine’s Floral Supplies Inc. issued Check 3100 for $300 to establish a petty cash fund. On January 31, Check 3159 was issued to replenish the petty cash fund. An analysis of payments from the fund showed these totals: Supplies, $55; Delivery Expense, $96; and Miscellaneous Expense, $31.
Indicate how this transaction would be recorded in a cash payments journal.
The purpose of a petty cash fund is to eliminate the expense and trouble of constantly recording and writing checks for little and inconsequential expenses.
What is petty cash fund?When using an alternate method (such as a Purchasing Card), such as an incidental or emergency small-dollar purchase, it is not practical to use petty cash funds, which are designated for departmental use. Minimal amounts of cash, typically no more than just few hundred dollars, are stored on the premises of a business or firm to cover small costs and needs.
A tiny collection of banknotes and coins that a business keeps on hand to cover miscellaneous expenses is known as petty cash. This fund is managed by a petty cash custodian, who keeps an accurate reconciliation of the number of notes and coins still present in it.
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which one of the following is not a characteristic of a general partnership? a. a partner has the right to participate in management, but is not a co-owner of partnership property. b. a partnership is an entity distinct from the individual partners. c. any partner may legally enter a contract that also binds the other partners. d. partnership income is separately taxed.
The option that is not a characteristic of a general partnership is option d. partnership income is separately taxed.
How are partnership earnings reported?In partnership, except that each partner has a separate capital and drawing account, partnership accounting is the same as proprietorship accounting. Except that total owners' equity is equal to the sum of the capital accounts of the partners, the basic accounting equation (Assets = Liabilities + Owner's Equity) remains unaltered.
Although a partnership does not pay income tax, it is required to file an annual information return to disclose the income, deductions, gains, losses, etc. from its operations. Profits or losses are instead "passed through" to its partners
Therefore, profits do not always incur double taxation as they would if the company were a corporation, but on the other hand, the partners may be held personally accountable for partnership obligations.
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We can reduce the margin of error in an interval estimate of p by doing any of the following except: a. reducing the confidence coefficient. b. increasing the planning value p* to .5. c. increasing the level of significance. d. increasing the sample size.
Any of the following, with the exception of increasing the sample size, can reduce the margin of error in an interval estimate of p.
What three factors influence a confidence interval's margin of error?The margin of error in a population mean confidence interval estimate is influenced by three factors: size of the sample, population variability, and confidence level.
What are two strategies that will diminish the room for give and take in a certainty stretch?You can make more observations by using a larger sample size. As a result, a smaller interval will surround your sample statistic. You can get a more precise estimate of a population parameter by collecting more data.
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company acquisition for the sole purpose of diversification is normally not a wise financial strategy. question 3 options: a) true b) false
It is false that a company's acquisition for the sole purpose of diversification is normally not a wise financial strategy.
Therefore, False is the appropriate option.
What is Diversification?The process of allocating capital in a way that reduces exposure to any one particular asset or risk is known in finance as diversification. Diversification is frequently achieved by investing in a range of assets, which can help to reduce risk or volatility.
Another strategy used to balance a variety of investments within a portfolio in an effort to reduce portfolio risk is diversification. The most popular method of diversifying a portfolio is to invest in various asset types, such as stocks, bonds, real estate, or cryptocurrency.
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If you have saved $4,000 in your savings account that earns 0.3% interest annually, what will most likely happen to the purchasing power of your savings over time?
If You have more money, but your purchasing power is lower. You will actually lose money if your savings don't increase at a rate that keeps up with inflation. Hence purchasing power will be $ 4012 .
What is Purchasing power ?If inflation reduces your purchasing power every year when you are retired and living off of your savings, you won't be able to maintain the same level of life. This is particularly true in the United States, where medical costs frequently increase more quickly than other prices.
Long before retiring, inflation can be detrimental. Let's say you are diligently setting aside money for a specific purpose, like a home down payment or a college fund for your kids. While you're saving, your money's purchase power can decrease.
Given in que
Saving $ 4,000
interest = 0.3%
[tex]4000+0.3%= 4,012\\$ 4012\\[/tex]
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bill, the hr manager at esposito inc., compiles the company newsletter and in the process coordinates with the managers of other departments. the communication seen in this scenario best exemplifies communication. a.horizontal b.upward c.vertical d.informal e.diagonal
Answer:
horizontal
Explanation:
1. Which option is an investment with compound interest?(1 point)
A. a rental property
B. a checking account
C. a mutual fund following the S&P 500
D. a savings account
2. Which of these is considered a financial market?(1 point)
A. Sotheby’s auction
B. New York Stock Exchange
C. J.P. Morgan Chase
D. Ferrari dealership
3. Which of the following is not a characteristic of a typical bank savings account?(1 point)
A. no restrictions on money withdrawals or deposits
B. savings are easily accessible for the customer
C. a high interest rate
D. an average of 0.05% interest with no other restrictions
4. Which of the following are considered to be capital gains?(1 point)
A. the new value of a stock after the market closes
B. the profit earned on the sale of an asset which has increased while it was owned
C. the money lost when a stock is sold for less than it was purchased for
D. the interest earned from a government bond
A mutual fund following the S&P 500 is an investment with compound interest. option(C) is correct
What is the investment?Investment is the ceremonial of money to purchase an asset to attain an increase in value over a time period of time. Investment requires a sacrifice of some present quality, such as time, medium of exchange, or effort. In finance, the purpose of investing is to generate a return from the invested asset.
The interest you earn on interest is known as compound interest. Simple math may be used to demonstrate this: if you have $100 and it generates 5% interest annually, you will have $105 at the end of the first year. You will wind up with $110.25 at the conclusion of the second year.
Therefore, option(C) is correct
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