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3 years ago

13

Imagine you are looking at a bottle of salad dressing containing oil, vinegar, and water. you notice that the oil sits on "top"

of the other liquids. this is due, in part, to the fact that:

1 answer:

user100 [1]3 years ago

4 0

The oil is denser
the water and vinegar are not as dense

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the nominal interest rate is 7 percent and the expected inflation rate is 4 percent. the real interest rate is

Hoochie [10]

Answer:

2.88%

Explanation:

According to the fisher equation :

(1 + Nominal interest ) = (1 + real interest) (1 + inflation rate)

(1.07) = (1.04) x (1 + real interest)

(1.07) / (1.04) = (1 + real interest)

1.028846

real interest rate = 2.88%

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2 years ago

A population of wild horses has a growth rate (r) of 0.2 per year. If the population starts out with 50 individuals and there is

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The answer to this question is e

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2 years ago

Why might you choose an investment with high risk instead of one with low risk?

NeX [460]

The reason of choosing of investment with high risk instead of one with low risk because the high risks stocks, bonds are having more returns as compared to low risks, especially long term stocks.

<h3>What is high risk investment?</h3>

High risk investment is the one who have high chance of loss of capital or under-performance or have a great percentage of amount invested in some stocks.

Some high risk investments are Cryptocurrency, Individual Stocks, Initial Public Offerings, Venture Capital or Angel Investing, Real Estate and others.

Thus, The reason of choosing of investment with high risk instead of one with low risk

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2 years ago

Barry has a medical plan with a $1,200 deductible, 20% coinsurance, and a $5,000 coinsurance cap. His allowable medical expenses

Trava [24]

Based on his deductible and coinsurance cap, the amount that Barry will pay is <u>$4,560.</u>

<h3>Amount Barry will pay </h3>

Barry will have to pay the entire deductible of $1,200. The expenses that are left will then be shared between him and the insurer in a 20% - 80% ratio but he will not pay more than $5,000.

Total he will pay out of pocket is therefore:

= Deductible + ( 20% x (Medical expenses - deductible))

Solving gives:

= 1,200 + ( 20% x (18,000 - 1,200))

= $4,560

In conclusion, he will pay $4,560.

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2 years ago

Dragon Inc. a NJ based construction firm is evaluating whether to replace an aging machine with a new model. For the old machine

Vilka [71]

Answer:

It should replace the old machine. In the current accounting period.

Explanation:

We need to perform a relevant cost analysis:

Keep the machine:

F0 = $0

F1 = $1500 maintenance

F2 = $3,000 maintenance

F3 = $6,000 maintenance

F4 = $12,000 maintenance

F5 =$24,000 maintenance + 250 resale value

replace the machine:

F0 = -12,000 purchase + 4,000 sale of old machine = -800

F1 = $900 maintenance

F2 = $900 maintenance

F3 = $900 maintenance

F4 = $900 maintenance

F5 =$900 maintenance + 1,500 resale value

As revenues are the same for each machine, we ignore them. We will only focus on the cost each machine generate:

We solve for the present worth of each machine with a discount rate of 12%

$\displaystyle PV_{old} = -\frac{1,500}{1.12} - \frac{3,000}{1.12^2} - \frac{6,000}{1.12^3} - \frac{12,000}{1.12^4} - \frac{23,750}{1.12^5}\\\\\displaystyle PV_{old} = -29,104.15$

$\displaystyle PV_{new} = -8,000 - \frac{900}{1.12} - \frac{900}{1.12^2} - \frac{900}{1.12^3} - \frac{900}{1.12^4} + \frac{600}{1.12^5}\\\\\displaystyle PV_{new} = -10,393.16$

As the present worth of the new machine is lower, the best decision for the company is to purchase the new machine and sale the old machine.

Delaying this will incur in higher maintenance cost (1,500 - 900)

and a lower recovery value (4,000 - 2,000)

As there is no cost saving for delaying the purchase, it should be made immediately.

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3 years ago