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3 years ago

9

Behavior that involves giving up something of relatively low value in exchange for getting something of great value in the futur

e is best described as:

1 answer:

aleksklad [387]3 years ago

5 0

It's called reciprocal altruism

You might be interested in

1 . Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpe

Dmitrij [34]

Answer:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

the bank offers 1.6%

in the alternative scenario it offers 1.067%

Explanation:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

The perpetuity is an annuity in which time tends to infinity, to be qualified as an annuity the cash payment must be regular.

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

As state above the perpetuinty is an annuity, the annuities return the present value of the expcted future cash flow.

Given the annuity formula

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

if times tends to infinity then the expression:

$\lim_{n \to \infty} (1+r)^{-n} = 1$

Nexti n the annuity formula we got:

$C \times \frac{1-1 }{rate}= PV\\$

So we end up with C / rate = PV

which s the perpetuity formula

800/50000 = 0.016 = 1.6%

800/75000 = 0.0106667 = 1.067%

7 0

3 years ago

The basic purpose of imposing legal reserve requirements on commercial banks is to: A. Assure the liquidity of commercial banks

Aliun [14]

Answer:

Provide a device through which the credit-creating activities of banks can be controlled

Explanation:

The legal reserve requirement is the minimum amount mandated by Central banks for banks to have as their minimum reserves.

The legal reserve requirement is used by the government as a means to control the supply of money in the economy.

If the central bank wants to reduce money supply, it increases the legal reserve requirement and if it wants to increase money supply, it reduces the legal reserve requirement.

A high reserve requirement reduces the amount that banks can make available for loans.

I hope my answer helps you

5 0

2 years ago

ivann1987 [24]

Answer:

i want to see the answer to this question

3 0

3 years ago

If a business is in need of working capital, one option is to use a(n) ________ that will buy the company's account receivables

vesna_86 [32]

Answer:

factoring company

Explanation:

Factoring companies purchase your company's invoices (account receivables). When they do that, your company promptly receives a cash advance, instead of waiting for the usual 60, 90 day period to receive the full payment amount. Afterward, the factoring company collects the payment from your clients.

All of that is done for a fee to the factoring company (deducted from the full payment amount) and mostly with clients with whom it is normal to have longer payment periods. Factoring is an essential way to get bigger working capital.

5 0

3 years ago

Read 2 more answers

Hybrid cars are touted as a "green" alternative; however,the financial aspects of hybrid ownership are not as clear. Consider th

lord [1]

Answer:

a)

the hybrid model initially costs $5,200 more than the regular model, plus you have another $330 in extra ownership costs per year. If you plan to own the hybrid car for 6 years, then you must recoup $5,200 / 6 = $866.67 + $330 = $1,196.67 per year.

the cost of driving 1 mile with the hybrid car = $3.60 / 27 = $0.1333

the cost of driving 1 mile with the regular model = $3.60 / 19 = $0.1895

you will save = $0.0562 per mile driven

you would need to drive $1,196.67 / $0.0562 = 21,293 miles per year to make the decision worth it

b)

if you only drive 15,500 miles per year, then you would need to save $0.0772 per mile

that would only result if gasoline's price was:

x/19 - x/27 = 0.0772

0.0526x - 0.037x = 0.0772

0.0156x = 0.0772

x = 0.0772 / 0.0156 = $4.95 per gallon

c)

you must first determine the present value of all additional expenses related to purchasing a hybrid:

year cash flow

0 -5,200

1 -330

2 -330

3 -330

4 -330

5 -330

6 -330

Using a financial calculator, the PV = -$6,637.24

now we must use an annuity formula to determine the annual savings required using a 10% discount rate and 6 periods:

annual savings = $6,637.24 / 4.3553 (PV annuity factor, 10%, 6 periods) = $1,523.95

so you must save $1,523.95 per year and that is equivalent to $1,523.95 / $0.0562 = 27,116.47 = 27,116 miles

d)

you also need to save $1,523.95, but you only drive 15,500 miles, so the savings per mile = $0.0983

x/19 - x/27 = 0.0983

0.0526x - 0.037x = 0.0983

0.0156x = 0.0983

x = 0.0983 / 0.0156 = $6.30 per gallon

5 0

3 years ago