Answer:
Does not have the ability to control the price of the product it sells
Explanation:
A price taker is a firm that doesn't have the ability to control the price of the product they sell.
Price taker exist in a perfectly competitive market where individual firms cannot dictate prices of goods and services.
A perfectly competitive market is characterised by
1) presence of large number of buyers and sellers.
2) There is free entry and exit.
3) Sellers sell homogenous product, that is, identical product.
4) Buyers have access to information.
In contrast to price taker, we also have price makers who have the ability to control the prices of product they sell.
Deposit (PV): $10,000
Years between the 18th month and the fifth year (n) = 3.5
(I)=7% yearly interest rate
Simple interest approach accumulated value equals P*(1+(i*n)).
=1000*(1+(7%*3.5))
=1245
Thus, the total value at the end of five years will be $1245.
Compound interest method accumulated value equals P*(1+i)n
=1000*(1+7%)^3.5
=1267.19
Therefore, the total value after five years will be $1267.19.
Learn more about simple interest here ;
brainly.com/question/25845758
#SPJ4
Answer:
- Compound Interest ⇒ FV = PV x (1 + I ) ^N
- Simple Interest ⇒ FV = PV x I x N
Explanation:
With compound interest the rate of growth needs to be compounded which is why the time period is used to exponentially adjust it.
With simple interest there is no compounding so the value is simply the interest that will be earned every period (which is a constant value) multiplied by the number of periods and the amount to be invested.
