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3 years ago

Limited decision making is used when purchasing frequently bought, low-cost items needing very little decision effort.

Business

1 answer:

Kay [80]3 years ago

5 0

Answer:

True

Explanation:

Routinized response behavior is the decision making process used by consumers when they buy frequently purchased, low cost items that require very little search and decision effort.

Convenience goods are low cost goods that are purchased frequently with very little search and decision effort, e.g. candy, cold drinks, etc.

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You are planning your retirement in 10 years. You currently have $169,000 in a bond account and $609,000 in a stock account. You

Over [174]

Answer:

$187,584.20

Explanation:

Firstly, we need to calculate the total future value (FV) of the bond account and stock account after 10 year from now (when you come to retirement age):

FV_bond at retirement = 169,000 x (1 + 7.25%)^10 + 7,100 x (1 + 7.25%)^9 + 7,100 x (1 + 7.25%)^8 + … 7,100 x (1 + 7.25%)^0 = 426,230.93

FV_stock at retirement = 609,000 x (1 + 10.75%)^10 = 1,690,653.63

Total FV of your investment portfolio = 2,116,884.57

Because you plan to use up all the funds in your account after 21 equal amount withdrawals after retirement, total present value (at the time you retire not now) of these withdrawals (discounted at 6.5%) have to be equal to the value of your invesment 10 years from now, or:

2,116,884.57 = C/(1+6.5%) + C/(1+6.5%)^2 + … + C/(1+6.5%)^21, with C is the amount you plan to withdraw each year.

Solve the equation we get C = 187,584.20

Note: The equation can be solved easily using Excel or BAII Plus. 

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2 years ago

On January 1, 2018, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cos

Licemer1 [7]

Answer:

Pension Expense = EBE = $593440 for income statement

Explanation:

The opening balance of the Plan asset is made by the 40000 from 2018 plus interest of 32000 and the new 400000 made this year. Why include it? Because an opening balance are the funds in an account at the beginning of the year either from last year or are from current year but should be the first entry in the books of the current year.

DBO plan asset EBE

opening balance (600000) 832000 -

interest ( 60000) 66560 6560

current year's service cost (600000) (600000)

( 1260000 ) 898560  593440

balance sheet liability = 361440

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3 years ago

Read 2 more answers

Hellp! WILL GIVE 30 POINTS!!

o-na [289]

house remodeling- this job takes an artistic person to be able to envision how to make a home look better and what all it would take to insert their vision in the home they are remodeling

3 0

2 years ago

Read 2 more answers

Financial institutions such as commercial banks, bond mutual funds, insurance companies, and pension funds maintain large portfo

inessss [21]

Answer:

The correct answer is letter "B": unfavorably; increases.

Explanation:

As a measure to control inflation in the economy, the Federal Reserve (Fed) tends to increase the interest rate. This to have banks request fewer loans from the central bank which will result in offering fewer credits to individuals. If people have fewer sources of debt, the possibilities that an economic bubble -continuous increase in price due to continuous increase in demand- appear decreases.

However, if people have fewer sources of debt, private investment decreases, causing an unfavorable panorama for financial institutions offering large portfolios of assets.

8 0

2 years ago

For many years, college costs (including tuition, fees, and room and board) increases have been higher than the inflation rate,

arsen [322]

Answer: $23,888

Explanation:

The cost today for a freshman at a public university is $19,500.

Inflation is at 7% a year and the period is 3 years from now. It is best to use a future value formula:

= Fees * ( 1 + rate) ^ number of years

= 19,500 * ( 1 + 7%)³

= 19,500 * 1.225043

= $23,888

3 0

3 years ago