Answer:
The correct answer is letter "A" and "C": An increase in the family's car payment means the family will be unable to afford a vacation; A newer model offers better protection and functions but is more expensive than an older model.
Explanation:
Trade-offs are the result of comparing what must be acquired with what should be given up to satisfy most of a need. While selecting a new vehicle, a family must consider its capacity, size, and price. Besides, they will have to evaluate all the could be left behind for incurring such expenses like buying a new piece of furniture of use of most members of the family, remodeling part of the house or going on a family vacation.
Answer:
(d) $1.55≤VP(0)<$1.76
Explanation:
VP(0) =VC(0) +Ke-rT-FP0
T(S) =VC(0) +Ke-rT-S(0) +De-rt1+De-rt2
Using the formulae
= 3.20 + 35e-0.06/2-36.50 + 0.50e-0.06/4+ 0.50e-0.06/2
=1.64.
The priceVP(0) of a 6-month, $35.00 strike put option is 1.64
Uninsurable risk is one where the insurance company cannot calculate the probability of the risk occurring which can happen due to numerous reasons. An insurable risk is one where the calculations can be made and the premium that gets paid is determined.
Answer: Difference = $185,948.5 - $147,285. = $38,663.5
Explanation:
To calculate the future value, you have to use the formula
fv = PA (1 + r/100)ⁿ
where
FV = future value
PA = Present Amount
r = rate
n = number of years
calculating for the future value if you earn a percent of 7.5 =
fv = 5,000 (1 + 0.075) ⁵⁰
fv = 5,000 ( 1.075)⁵⁰
fv = 5,000 (37.1897)
fv = 185,948.5
calculating the Fv when the rate is 7%
fv = 5,000 (1 + 0.070) ⁵⁰
fv = 5,000 ( 1.070)⁵⁰
fv = 5,000 (29.4570)
fv = 147,285
Then find the difference between the Fv when the rate is 7.5 and when the rate is 7
Therefore difference = $185,948.5 - $147,285. = $38,663.5
Answer:
A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time.
Explanation:
