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Pie
3 years ago
7

A young man is the beneficiary of a huge trust fund 35 years ago. If they had set aside $25,000, how much will be in the trust n

ow if they could invest the money at 2.5% per year compounded annually?
Business
1 answer:
Pachacha [2.7K]3 years ago
6 0

Answer:

The correct answer is $59.330.13.

Explanation:

According to the scenario the given data are as follows:

Amount (p) = $25,000

Interest rate (r) = 2.5%

Time (T) = 35 years

So, we can calculate the amount they could invest by using following formula:

CI = P ( 1 + R)^t

= $25,000 ( 1 + 0.025)^35

= $25,000 ( 2.37320518607)

= $59,330.13

Hence, the amount they could invest is $59,330.13.

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Answer:

either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.

Explanation:

Competitive advantage is the edge that a firm has over others in the same industry that results in higher profit margins for them.

One of the importance competitive advantages is price advantage.

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Also they can underprice their competitors or earn profit margins on the reduced cost of production per unit

5 0
3 years ago
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If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial
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Answer: must offer higher

Explanation:

The financial world of investment is inter-correlated and products can sometimes be substitutes for one another. What this means is that if one financial product is not offering enough return on investment or is risky or for any other reason shakes their confidence in it, then investors tend to run to financial products that are perceived as better.

This is why when interest rates are stable and stocks are volatile, stock markets tend to lose value and bond markets sometimes gain value as investors leave the stock market and come to the bond market.

In the scenario described, the interest rate in the money market is 5%. If interest bearing financial assets are only at 2%, investors will leave/ not invest in those interest bearing bonds because the rate is lower. The sellers of such assets will therefore have to make them more attractive by increasing the the interest rates to find willing buyers.

4 0
3 years ago
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3 years ago
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Answer:

1 hour working on problems, 3 hours reading

Explanation:

the question is not complete:

Bob is a hard-working college freshman. One Tuesday, he decides to work nonstop until he has answered 200 practice problems for his chemistry course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem.

Time                   Total Problems Answered       Marginal gain

8:00 AM                         0    

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10:00 AM                     140                                        60

11:00 AM                      180                                        40

Noon                          200                                        20

Since Bob's is able to answer more than 70 questions per hours only during one hour (from 8 to 9 AM), he can benefit more from reading the next 3 hours. Reading would be equivalent to answering 210 questions, while Bob was only able to answer 120 more questions in the following 3 hours.

6 0
2 years ago
Which statement below is​ FALSE? A. ​Mintzberg's notion of​ "crafting" strategies embodies the artistic​ model, which suggests t
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Answer:

D

Explanation:

3 0
3 years ago
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