Answer:
We should accept offer 2 because the amount <u>today</u> is higher than offer 1.
(offer 1 is $89,500, offer 2 is 91305)
Explanation:
To get the right answer we have to compare the 2 offers in the same moment of time. We use interest formula to bring the future amount to this moment.
First offer is for $89,500 today
Second offer is $35,000 today and $70,000 in two years discount rate is 11.5.
The formula of interest is A=P (1+r)ⁿ
A=Final amount
P= Principal ( deposit)
r= interest rate
n= time
We know A, r and n
Looking for P,
then P= A/(1+r)ⁿ
P= 70000/(1+0,115)²
=56305
Offer 2 is =35000+56305=91305
Answer:
70 years
Explanation:
Amount, A= $250,000
Principal, P=$2500
Rate, R=$6.65 compounded quarterly. This means that in every 3 months of the year, the interest the principal yielded is added to the principal to become the new principal for every 3 months.
Formular:
Amount, A= P[1+(R/100×4)]^4t
Where P = principal
R = rate
t = number of years
The "4" in the formular shows that the interest is compounded "quarterly".
In this problem, we are looking for the number of years ( which is "t") it will take to save up to $250000.
Substituting the values:
250,000=2500[1+(6.65/100×4)]^4t
Dividing both sides by 2500,
We have:
100=[1+(6.65/100×4)]^4t
Simplifying the terms inside brackets, we have:
100=1.016625^4t
Find the value of t which when substituted in the expression will give 100. The value of t = 70.
Hence it will take 70 years to save $250000
<h2>Choices companies give customers of the features to be included on the products they purchase are known as "options".</h2>
Explanation:
Options are nothing but an enhanced version of the basic product.
There are 'n' number of examples which can be given and I am listing few.
Example 1: Shampoo
Shampoo is the basic product, adding on to it with little conditioner effect and fragrance enhance the existing model and customer likes the enhanced feature / option.
Example 2: Automobile products
A basic automobile with rear mirror, seat cover, carpets, etc to attract customer.
Example 3: Mobile phones
Almost all the customers look mainly for the features and they get attracted towards the purchase only by reading the features.
Features are added to keep the product live in the market.
Answer:
The correct option is B that is 0.45
Explanation:
Computing the Current Ratio with the formula which is as:
Current Ratio (CR) = Current Assets (CA) / Current Liabilities (CL)
where
Current Ratio (CA) is $477.50
Current Liabilities (CL) is $1075
Putting the values in the above formula of Current Ratio (CR):
= $477.50 / $1075
= 0.444 or 0.45
Note 1: Inventory will not be included while computing the current ratio, as it is already been added in the current assets. Therefore, there is no need of adding it twice in the Assets.
Note 2: This is the correct formula for computing the current ratio and I computed the same with the given information, so it 0.45 is the correct answer.
Answer:
Statement A
Explanation:
The 2 statements are:
A: The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements
B: The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements
The explanation for this is:
- The company is an insurance company
- An insurance company holds funds for their customers; to be released when the customer is less privileged or in a bad situation, depending on the type of insurance made
- There is car insurance, house insurance, life assurance, etcetera.
- So if the insurance company receives proof of loss statements from the customer, it will release funds to solve the customer's dire need
- In this case, it takes 120 days to verify, process and then agree (affirm) to release funds (claims) to the affected customer.
So the answer is Statement A.
