Does increasing the money supply cause inflation or deflation?

Answers

Answer 1

Inflation may occur when the Federal Reserve increases the money supply. If the Federal Reserve is attempting to boost the economy by increasing the money supply.

Inflation is likely to occur, as prices will rise and the cost of goods will fluctuate.

Deflation or an increase in the money supply?

Prices can also fall as a result of technological advancements and increased productivity, despite the fact that a decrease in the supply of money and credit is typically linked to deflation. The attractiveness of various investment options changes depending on whether the economy, price level, and money supply are expanding or contracting.

What happens when there is more money available?

Interest rates are typically lowered when there is an increase in the money supply. This leads to more investment and more money in the hands of consumers, which in turn encourages spending. As a result, more raw materials are ordered and production is increased.

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Related Questions

workers are hired to sell spring break vacation packages. each worker is paid $100 per day. an experienced worker sells 5 packages per day. the newly hired worker sells 3 packages per day. each package sells for $450. what is the marginal cost of the new worker per day?

Answers

The marginal cost of the new worker hired to sell spring break vacation packages is $200 per day.

What is a marginal cost?

The marginal cost in economics is the change in total production cost that results from making or producing one additional unit. Divide the change in production costs by the change in quantity to calculate marginal cost.

The marginal cost of the new worker per day is calculated as:-

Each worker is paid $100 per day

An experienced worker sells 5 packages per day

Total cost for an experienced worker = $100× 5 = $500

Newly hired worker sells 3 packages per day

Total cost for a new worker = $100× 3 = $300

∴ The marginal cost of the new worker per day = Total cost of a experienced worker - Total cost of a new worker = $(500-300) = $200.

Therefore, $200 is the marginal cost of the new worker per day.

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the unadjusted trial balance at the end of the year includes the following: accounts receivable $98,000 allowance for doubtful accounts 1,000 both accounts have normal balances. the company uses the aging of accounts receivable method. its estimate of uncollectible receivables resulting from the aging analysis equals $5,800. what is the amount of bad debt expense to be recorded for the year? a. $7,800 b. $5,800 c. $6,800 d. $4,800

Answers

The amount of unsecured debt expenditure that needs to be reported for the year is $4,800, according to the statement.

What does the term "company" mean?

A organization is a legal person that a group of people to conduct and manage a business venture, whether it be corporate or industrial. Depending here on corporate legislation of its country, a corporation may be set up in a variety of ways including tax and financial responsibility reasons.

Briefing:

Information given in response to the query,

Uncollectible receivables = $5,800

Allowance for Doubtful Accounts = $1,000

Below is a breakdown of how bad debt expenses were calculated:

Estimated Uncollectible receivables - Allowance for doubtful accounts as per aging analysis

= $5,800 - $1,000

= $4,800

Therefore, we consider the accounts for the dubious allowance to have a credit balance.

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using the indirect method to create the operating activities section of the statement of cash flows, the cash flow recorded based on the change in inventory would be:

Answers

we would subtract from net income because it is temporary and unpredictable.

What  is Net income?Net income can either be added to retained earnings by the company or given as a dividend to ordinary stockholders. Net earnings and net profit are frequently used as synonyms for net income because profit and earnings are used interchangeably for income (depending on usage in the UK and the US as well). Net income is frequently substituted with the word income, but this is not preferred owing to potential ambiguity. Because net income is often located on the last line of a company's financial statement, it is colloquially known as the bottom line (a related term is top line, meaning revenue, which forms the first line of the account statement).Simply said, net profit is the amount of money that remains after all expenses have been paid.

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currency risk management increases the expected cash flows to the firm. a. true b. false group of answer choices a b

Answers

TRUE, currency risk management increases the expected cash flows to the firm

The longest task is regarded as the most effective and efficient candidate activities to cut the length of a project in project management. Early tasks as opposed to later tasks are generally better candidates for shortening. One of the main dates used in project scheduling is the early start date, which is the earliest date on which a project manager starts an activity relative to all of its predecessors and successors. While later jobs employ the challenging approach, early tasks often use an easy approach to project launch.

currency risk management increases the expected cash flows to the firm. a. true b. false group of answer choices a b

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Where can you search for Apps that work with QuickBooks online?

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From the left menu, select Apps.

Go to the Find apps tab.

Enter the app name in the search bar or select the Browse category ▼ drop-down menu to check out different apps.

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Why is kanban better than Scrum?

Answers

Kanban helps visualize your work, limit work-in-progress (WIP) and quickly move work from Doing" to "Done.

Work-in-progress (WIP) is a production and supply-chain management word used to describe products that are partially done but need to be finished. Raw materials, labour, and overhead expenses expended on goods that are in various phases of manufacturing are referred to as WIP. Calculations of WIP inventories can aid a business in supply chain planning and supply chain health assessment.

Work in Progress (WIP) refers to unfinished products that are still in the manufacturing process, between the stages of raw materials and final products.

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a) (total unemployed marginally attached workers part-time employed for economic reasons)/adult population b) (total unemployed marginally attached workers part time employed for economic reasons)/(labor force marginally attached workers) c) (total unemployed marginally attached workers)/(labor force marginally attached workers) d) (total unemployed marginally attached workers)/adult population

Answers

The Correct answer (d).(total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers).

Underutilization of labor

1) People without a job that pays:

Unemployed people have lately sought for job or are readily available for employment; semi-employed people have recently looked for work but are not immediately available for employment or vice versa.

2) People who have a paid job: - Part-time employees: People who are employed part-time and are readily available.

According to Eurostat, the labor market is "slack." It is referred to as "labour underutilization" by the International Labour Organization (ILO). Additionally, both groups utilize phrases like "unmet demand" and "desire for work." Eurostat and the ILO both refer to semi-unemployed people as "possible extra labor force" and "potential labor force," respectively.

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The BLS reports the U-6 measure of labor underutilization. Which of the following is how it computes U-6?

Select one:

a.(total unemployed + marginally attached workers)/adult population

b.(total unemployed + marginally attached workers + part-time employed for economic reasons)/adult population

c.(total unemployed + marginally attached workers)/(labor force + marginally attached workers)

d.(total unemployed + marginally attached workers + part time employed for economic reasons)/(labor force + marginally attached workers)

Explain how schedule management is different when using an agile project management approach compared to traditional planbased project management. (3 marks)
In Scrum,why is it useful to hold retrospectives at the end of weekly iterations?

Answers

Large-scale projects are managed by the timeline. Only at the commencement and until project completion do they communicate with their clients.

Retrospectives offer an opportunity for evaluating mistakes and showing appreciation. The following sprint's improvements can be discussed among the team members.

What is traditional plan-based project management?

Traditional project management requires careful planning that is very consistent. Each process phase occurs one after another in a traditional sequential project management technique.

Large-scale projects are managed by schedule. In an agile approach, communication with clients is collaborative, and clients are continuously updated on project progress.

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What are the 4 processes of artificial intelligent?

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Self Aware, limited Memory, theory of mind and reactive Machines these  are the 4 processes of artificial intelligence.

What precisely is AI?

Computer software that imitates certain facets of human intelligence is known as artificial intelligence, or AI. Think about a program that suggests books to read based on the books you've purchased or a robot vacuum that can at least understand the basics of its environment.

How significant is AI, exactly?

The amount of data produced today, by both humans and machines, considerably exceeds the capacity of humans to comprehend, understand, and base complicated decisions on that data. The future of all complicated decision-making and the foundation for all computer learning is artificial intelligence.

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Is Kanban easier than Scrum?

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No, The flexibility of Kanban has a cost: utilising Kanban makes planning more challenging. The Scrum approach makes forecasting easier.

A well-liked framework for implementing agile and DevOps software development is kanban. It necessitates complete transparency of work and real-time capacity communication. Team members can always observe the status of every piece of work thanks to the visual representation of work items on a kanban board. The cost of Kanban's flexibility is that it makes planning more challenging. The Scrum approach makes forecasting easier. A burn up chart provides a fairly accurate representation of the anticipated delivery date, taking unpredictability into account.

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when the audit client has engaged other audit firms to audit remote locations around the country, the principal auditor must mention the other auditors in his or her report. select one: true false

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Under international auditing standards ,when the audit client has engaged other audit firms to audit remote locations around the country, the principal auditor must mention the other auditors in his or her report is the statement is false .

What is the duty of an auditor hired to conduct an audit?The auditor has a duty to prepare and carry out the audit in order to get a reasonable assurance regarding the absence of a major misrepresentation, whether brought on by fraud or error.The components whose financial information was audited by other auditors, their importance to the entity's overall financial statements, the names of the other auditors, and any conclusions that specific components are immaterial would all be noted by the principal auditor in the audit working papers.The primary auditor may study a written summary of the other auditor's processes and results, which may take the form of a completed questionnaire, or discuss the audit techniques used with the other auditor.

The complete question is Under international auditing standards, when the audit client has engaged other audit firms to audit remote locations

around the country, the principal auditor must mention the other audit firms in the audit report.select one: true false

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while building a video campaign, your goal is to grow consideration for your brand. why would you use video ad sequencing to achieve that objective?

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While building a video campaign, your goal is to grow consideration for your brand. you would  use video ad sequencing to achieve that objective because it allows you to :

drive website activities by delivering a story through a series of videos.increase ad interaction by presenting a story over many films.to convey different messages by narrating a tale in a succession of films.to emphasize a point by telling a tale over several videos.

With video ad sequencing, you can convey the story of your product or brand by displaying a sequence of films in the order you specify. A video ad sequence campaign can be used to generate attention, reinforce a message, or establish an unified theme.

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at the time of the birth of a child, a parent wants to begin a college fund that will grow to $47000 by the child's 18th birthday. interest is compounded continuously at 6.5%. what should the initial investment (p0) be?

Answers

The annual interest rate earned by an investment account is expressed as the annual percentage rate (APR), which is also known as the nominal rate. When compounding happens more frequently than once a year, the term nominal is used.

What is investment ?

Investments are financial commitments made to acquire assets in the hopes that their value would rise over time. Investment necessitates the loss of a current resource, such as time, money, or effort.

In the world of finance, investing is done in order to profit from the asset being put to use. Unrealized capital appreciation (or depreciation), investment income like dividends, interest, or rental income, or a mix of capital gain and income this is known as an investment return may all be included in the return.

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an increase in investment by americans in canada will have which of the following immediate effects? select an answer and submit. for keyboard navigation, use the up/down arrow keys to select an answer. a an increase in the u.s. financial account surplus b a decrease in the u.s. financial account surplus c an increase in the u.s. financial account deficit d a decrease in the u.s. financial account deficit e an increase in the u.s. current account deficit

Answers

An increase in investment by Americans in Canada will have a decrease in the U.S. financial account surplus.

An investment is what?

An investment is a trade undertaken with the hope of earning money or increasing capital. Appreciation is the term for an asset's value rising over time. When someone invests in a product, they do not aim to use it for direct consumption rather as a means of generating money in the future.

How does investing function?

We deposit funds into an account or fund with the intention of making a profit in order to invest. Over time, investing may yield higher returns (which may also involve more risk). For this reason, some people use investing to achieve long-term objectives like retirement.

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dependent demand items are typically final products demanded by an external customer. group of answer choices true false

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TRUE, dependent demand items are typically final products demanded by an external customer.

The longest task is regarded as the most effective and efficient candidate activities to cut the length of a project in project management. Early tasks as opposed to later tasks are generally better candidates for shortening. One of the main dates used in project scheduling is the early start date, which is the earliest date on which a project manager starts an activity relative to all of its customer and successors. While later jobs employ the challenging approach, early tasks often use an easy approach to project launch.

dependent demand items are typically final products demanded by an external customer. group of answer choices true false

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In quickbooks, Before merging two sub-accounts, what do you need to check?A. Make sure that both accounts are inactive.B. Make sure the names are spelled the same.C. Make sure that one account is inactive.D. Make sure their account number is the same.

Answers

In QuickBooks, Before merging two sub-accounts, The thing that you need to check is option C. Make sure that one account is inactive.

What is the merging  about?

Before merging two sub-accounts in QuickBooks, it is important to make sure that you have the necessary permissions and that the accounts you want to merge meet certain criteria. Here are some things you should check before merging two sub-accounts in QuickBooks:

Make sure you have the necessary permissions: In QuickBooks, only users with the appropriate permissions can merge accounts. If you don't have the necessary permissions, you will not be able to complete the merge.

Check that the accounts are both sub-accounts: In QuickBooks, only sub-accounts can be merged. You cannot merge a top-level account (such as an income or expense account) with another account.

Lastly,  Check that the accounts do not have any open transactions: In QuickBooks, you cannot merge accounts that have any open transactions (e.g., invoices, bills, checks). You will need to close all open transactions before you can merge the accounts.

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What is an example of opportunity cost for a nation?

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An example of opportunity cost for a nation is a country chooses to produce bananas instead of wheat.

What are the three opportunity costs of government?

The advantage that would have been gained by higher spending on another program is the opportunity cost of government spending on a specific program.

The marginal benefit of government provision may be greater than the marginal cost for public goods. For all publicly delivered goods and services, marginal benefit does not exceed marginal cost.

Government has three opportunity costs:

1. The value of the resources that could have been employed to provide the things that the public sector provides. These resources may be used by individuals and businesses in the private sector if the government did not use them.

2. The cost of resources employed to enforce laws and collect taxes is the second opportunity cost.

3. The deadweight loss of taxation is the third opportunity cost of the government. A change in taxation generally results in a shift in people's motivations.

Hence, An example of opportunity cost for a nation is a country chooses to produce bananas instead of wheat.

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Distinguish between the costs of having a basic checking account and an interest-bearing checking account.
a. minimum account requirements
b. hidden fees for online and paper statements
c. monthly service fees
d. restrictions on atm withdrawal amounts
1. a basic checking account
2. an interest-bearing checking account.

Answers

Costs associated with opening a checking account are generally hidden, and there are limits on how much money can be withdrawn from an ATM. Costs of checking accounts with interest; minimal account requirements; and monthly service charges

The interest is where these two accounts most significantly diverge.

Interest is not paid on a basic checking account. The quantity of money remains the same regardless of how long it is kept in the bank.

As the name suggests, an interest-bearing checking account generates interest. Sometimes, in order to earn interest, it needs to maintain a particular quantity.

In addition to the cheque book, both accounts may have access to ATMs, the internet, or mobile devices. If the balances in either account drop below the minimal maintenance balance requirement, penalties may also apply.

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What are the five 5 different stakeholder engagement approaches?

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Unaware, Resistant, Neutral, Supportive, and Leading are the five 5 different stakeholder engagement approaches.

By communicating with and getting to know their stakeholders, businesses participate in stakeholder engagement. Companies may better understand their customers' needs by getting to know them, since this helps them determine what they want, when they want it, how involved they are, and how the plans and activities of the company will effect their objectives. The practise of including those who could be impacted by decisions made by an organisation or who might have an impact on how those decisions are carried out is known as stakeholder engagement. They could concur with the choices made or disagree with them, occupy important positions in the business or the community where it works, or have long-term effects. They might also be influential. Engaging stakeholders is essential to reaching the triple bottom line and practising corporate social responsibility (CSR).

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How can an accountant user connect an app to a client's QuickBooks online?

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From the Install for Your Client drop-down box, choose your business or a client. Choose Install. Give QuickBooks permission to share your data with the chosen app. Set up any syncing preferences.

Intuit created and sold an accounting software suite called QuickBooks. QuickBooks products were first released in 1983 and were aimed primarily at small and medium businesses.

They offer cloud-based accounting programs that accept business payments, manage and pay bills, and manage payroll in addition to on-premises accounting tools. Intuit was founded in Mountain View, California by Scott Cook and Tom Proulx in 1983. The company created similar services for small business owners in response to the popularity of the Quicken program for wealth management.

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How can you increase your customers assessment of your product or service?

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A business does product sales. Many other businesses also do this. They must first ascertain the customer's preferences. Before determining whether a thing would sell, there is no reason to produce it. Production marketing would be that.

In order to keep customers coming back for more, the business must find a way to add value for them.

To create and capture consumer value, follow these five actions. Below are them:

1. Be familiar with marketing and its objectives

2. Recognize the market fit of your product and the needs of the target market.

3. Put Customer Focus at the Center of Your Marketing Strategy

4. Develop Bonds With Your Clients

5. Obtain Client Value

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Which management is the management of a network of interconnected activities involved in the provision of products required by end customers?

Answers

Supply chain management is management of network of interconnected activities involved in provision of the products required by end customers.

What is Supply chain management?

The phrase supply chain management, or SCM, is used in the business world to define the control of the movement of goods and services across organizations and locations. It includes all procedures that convert raw materials into finished commodities. This can involve the transportation and storage of raw materials, inventories for commodities still being produced, finished goods, and the entire order fulfillment process from the point of production to the point of consumption. Industrial engineering, systems engineering, operations management, logistics, purchasing, information technology, and marketing are all heavily emphasized in SCM practice, which aims for an integrated, multidisciplinary, and multimethod approach. In supply-chain management, marketing channels are crucial. Risk management and environmentally friendly business methods are now being researched in supply-chain management.

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Cherie pays her car insurance monthly. Her annual premium is $984. Each month she is charged a $2 convenience fee. If her annual premium is divided equally into twelve monthly payments, how much is her monthly insurance payment?.

Answers

If the annual fee is $984. She is charged $2 each month. fee for convenience Cherie's monthly insurance premium is $84 if her annual premium is divided equally into twelve equal payments.

What's an equation?

Equations are groups of two or more expressions denoted by the Equal sign.

Given, Cherie pays $984 per year in premium.

$2 is added to the annual premium each month.

If the annual premium is divided equally into twelve-month payments, we must determine her insurance payment each month.

Divide 984 by 12 for each month to determine this: 984/12 82 We are aware that the monthly fee is $2.

Therefore, add 82 to charge 2.

As a result, Cherie's monthly insurance payment is $84: $82 plus $2.

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What 2 main methods do central banks governments use to reduce inflation?

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The 2 main methods do central banks governments use to reduce inflation:  Raise Interest Rates and Increase Taxes.

What is government?

Government is the system by which a state or community is organized and managed. It refers to the system by which a society is politically structured, including the distribution of power and responsibilities between different levels of authority and the relationships between those in power. Governments can be classified in various ways, such as by size, scope, and form. In a democracy, government is run by the people, for the people, with the people’s consent. Government is responsible for creating and enforcing laws, managing public resources, providing public services, and protecting its citizens from internal and external threats. Governments may also be responsible for overseeing public healthcare, education, and welfare systems. In addition to this, governments may also regulate the economy, currency, and other aspects of life.

1. Raise Interest Rates: Central banks can raise interest rates to reduce inflation. This makes borrowing money more expensive, which reduces consumer spending and decreases inflationary pressure.
2. Increase Taxes: Governments can increase taxes to reduce consumer spending and decrease inflationary pressure. This can be done through a variety of different taxes, such as income taxes, value-added taxes, and sales taxes.

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What are 5 types of automation?

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Types of automation in production can be distinguished: fixed automation, programmable automation, flexible automation, and Integrated Automation.

What fundamental elements make up automation?

Simple automation involves automating simple, elementary tasks. At this level of automation, tasks are centralized and simplified by the use of tools, such as a shared message system, to avoid having information stored in isolated silos.

What is a good usage for automation?

Typically, automation is used to reduce labor requirements or to take the place of people in the most routine or menial duties. Virtually every industry sector and niche has some level of automation, but it is more common in the manufacturing, utility, transportation, and security sectors.

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Charles has recently been named trustee of his mother - in - law's estate . Her only financial assets are several mutual funds that are prohibited for Charles . Charles is in the process of divesting what should he do?

Select the one response that applies

- He should report the funds. There is no need to report the divestiture

- He should report the funds and divestures when he receives the trust's monthly statement confirming the trust no longer holds the funds

- Divest and do not report the mutual funds in his Tracking & Trading system

- He should record both the acquisition and the disposal of the mutual funds within 10 days of each event .

Answers

Based on the information in the question, Charles should report the funds and divestitures when he receives the trust's monthly statement confirming that the trust no longer holds the funds. Therefore, the correct answer is the second option.

Divestiture is the action of disposing of a business unit through selling, exchanging, closing, or filing bankruptcy. Mutual fund is a professionally managed pool of money that is collected by a number of investors that share a common objective in investment.

In the case in question, the mutual funds are prohibited for Charles. He is also in the middle of a divesting process. Therefore, the thing that he should do is to report both the mutual funds and divestitures. It should be done when he receive the trust's monthly statement that confirms the trust no longer hold the funds.

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a buyer and seller have a contract. the buyer is self-employed and takes the maximum amount of deductions possible. the buyer has plenty of money, but her tax return indicates not enough income, so her loan was denied. the lender says that the buyer could re-file her tax return and claim less reductions, but she refuses to do so. what could happen because of the buyer's loan denial?

Answers

Because of the buyer's loan denial, the B) buyer could terminate the agreement and receive her earnest money back.

When buyers and sellers enter into a contract, the buyer wants to make sure they get the most out of their purchase.

But in this case, the buyer was self-employed and took the maximum amount of deductions on their tax return.

Though they had plenty of money, the lender denied their loan due to the lack of income indicated on their tax return. The lender suggested the buyer could re-file their tax return and claim less deductions, but the buyer refused to do so.

As a result, the buyer is now in a difficult situation: their loan was denied and they could terminate the agreement and receive their earnest money back. Hence, option b is correct.

Although a part of your question is missing, you might be referring to this question:

A buyer and seller have a contract. the buyer is self-employed and takes the maximum amount of deductions possible. the buyer has plenty of money, but her tax return indicates not enough income, so her loan was denied. the lender says that the buyer could re-file her tax return and claim less reductions, but she refuses to do so. what could happen because of the buyer's loan denial?

A) The seller could sue the buyer for breach of contract because the buyer did not show due diligence in seeking financing.

B) The buyer could terminate the agreement and receive her earnest money back.

C) The buyer will be required to re-file or be in default.

D) The buyer could be at risk for fraud for indicating more deductions than necessary on her tax return.

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based on the energy consumption and operating costs per passenger-mile, which would be the best overall strategy for cities to consider? group of answer choices create or improve a convenient, affordable, rail transit system improve and increase city bus routes, providing affordable, pleasant buses increase affordable, high-rise parking sites in multiple locations throughout the city create carpool lanes on all major routes

Answers

The greatest overall plan for communities to think about would be to build or upgrade a practical, affordability rail transit system.

What's a good illustration of affordability?

If you reside in an area where rent is reasonable for the majority of its citizens, you can expect to pay a reasonable price for your own dinner. The word "affordable" can indicate "cheap" or it might imply meaning even if something is pricey, you have the resources to readily purchase it.

High affordability - what does that mean?

When a family with median income can afford to buy an existing home with a median price, the HAI index is equal to 100. An increase in the index number reflects the affordability of home ownership for more households.

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Identify one key takeaway from the Circular Flow Diagram. Circular diagram with arrows that represent inputs and outputs from firms and households that show how they interact. Firms provide goods and services and households pay for the goods and services. Households provide labor and in return firms provide wages, salaries, and benefits. Select the correct answer below: Households often provide firms with capital for free. Households often receive freebies from firms. There are no free exchanges between firms and households. Households provide firms with goods.

Answers

Based on the Circular Flow Diagram, we know that there are no free exchanges between firms and household (C).

Please refer to the Circular Flow Diagram attached below.

Circular Flow Diagram ilustrates the flow of money in an economy from producers to consumers and how it back again to its beginning, creating an endless loop.

Let's discuss the circular flow diagram given.

The given circular flow diagram represents the relationship between households and firms, and how both provide inputs for other and receive outputs from another.

Let's discuss each line.

A: Goods and Services

This line represents that firms provide goods and services as their output to the household using the input household provided.

B: Payment for Goods and Services

After household receive goods and services from firms, household should pay for those goods and services they received. This payment became the output from household and input for firms in a form of revenue.

C: Labor Service

Not only in a form of payment for goods and services, households also provide labor services for firms to help them on the production of goods and services they sell. The labor services are output from household and input for firms.

D: Wages, Salaries, and Benefits

After getting help from the labors and use their services, firms have to pay those labors their wages, salaries, and benefits. Those rights are output from firms and became input for households. After getting  paid by their works, those labors will have inputs to then purchase the goods and services sold by firms.

The circular flow diagram shows that the input-output flows in the economy between firms and household are endless and continuously happening.

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Nathaniel is going to invest in an account paying an interest rate of 3. 1% compounded quarterly. How much would nathaniel need to invest, to the nearest ten dollars, for the value of the account to reach $5,700 in 17 years?.

Answers

$3,370 approx would Nathaniel need to invest, to the nearest ten dollars, for the value of the account to reach $5,700 in 17 years. A future sum of money or stream of cash flows' present value (PV), assuming a given rate of return, is their current value.

Given,

Rate =3.1% compound quarterly

Time =17 years

future value =$5,700

Required to calculate the present value =?

The required calculations are shown in the file attached given below.

The amount of cash that must be invested in order to realize a given future objective is known as the present value. Future value is the amount of money that will grow over time if the initial investment is made. You must invest the present value in order to realize the future worth.

Therefore, Nathaniel would need to invest approximately $3,370.

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