Suppose You Have $1,000, Which You Can Put in Two

question 88

Essay

Suppose you have $1,000, which you can put in two different types of accounts at a bank. One account pays interest of 9 percent per year; the other pays an interest rate of 3 percent per year plus the rate of inflation. Calculate the amount of money you will have at the end of one year if the inflation rate is 5 percent. What is the real rate of return in each case? Which account would you prefer if you expected inflation to be 8 percent?

Describe the difference between a general ledger and a chart of accounts.

Understand the errors that can affect the trial balance and how to correct them.

Understand the basics of Crystal Ball and its functionalities.

Learn how to interpret forecast charts in Crystal Ball.

---

Definitions:

Social Loafing

The event in which individuals apply less effort in achieving an objective when collaborating in a group than when operating solo.

Cultural Revolution

A period of cultural, social, and political upheaval in China (1966–1976), led by Mao Zedong, aiming to preserve 'true' Communist ideology.

East Asian Studies

An academic discipline that focuses on the culture, history, and languages of countries in East Asia.

Altruistic Punishment

Punishing wrongdoers at a cost to oneself, often done to uphold social norms or promote cooperative behavior within a group.