Answer:
1) the payment over time ( $2833.39 )
2) the payment over time ( $2759.11 )
Explanation:
We get the lump sum today of $2750 which is exactly the value of this amount today and there is no need to discount this amount. We will compare this amount with the present value of the cash flows we will receive over time. If the present value of over time cash flows is more than lump sum payment, we will choose over time cash flows and vice versa.
1) The present at 6% for over time cash flows is,
- PV = 1000 + 1000/1.06 + 1000/1.06^2 = $2833.392
- As 2833.392 is more than 2750, we will choose payment over time.
2) The present at 9% for over time cash flows is,
- PV = 1000 + 1000/1.09 + 1000/1.09^2 = $2759.11
- As 2759.11 is more than 2750, we will choose payment over time.
Answer:
The dependent variable
Explanation:
There are two types of variables used in statistical analysis. The dependent variable and the independent variable.
The dependent variable are those ones whose value depends by rule on the values of other variables.
Independent variables are those whose vales are not dependent on the values of other variables.
In this scenario the independent variables under study are those that suffer insomnia and those that sleep well.
The dependent variable is the number of leisure hours.
Number of leisure hours varies with the group the participants are in.
For example leisure hours can be 3 hours for insomniacs and 6 hours for those that sleep well.
Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.
Answer: and industry output will be less than the initial price and output
Explanation:
From the question, we are informed that a purely competitive, increasing-cost industry is in long-run equilibrium and it was assumed that there is a reduction in consumer demand.
After all resulting adjustments have been completed, the new equilibrium price and industry output will be less than the initial price and output.
Due to the reduction in demand, the new equilibrium price will be less as the firm will want to increase the demand likewise there'll be a reduction in the output from the former output.
The difference between the secured and unsecured loans is that the secured loans are protected with a collateral.
While giving loans, banks usually ask the person to pledge something as a security. This collateral could be any property, jewelry or treasury. Through this the loan is secured from a threat of being the bad debt of the bank. If the person who is taking the loan is unable to pay back the loan, then the bank has the right to sell his property and pay for the loan and give the remaining amount to the person.
Similarly, loans that are given on the creditworthiness are always unsecured as the bank don't have anything to sell in case of non payment of the loan.