Answer:
2865.09
Explanation:
V0 = #Shares * Price per Share
V0 = 100 * 25.8 = 2580
V1 = Today´s Value
V1 = 2865
Return Year 1 = (V1 - V0) / V0
Return Year 1 = (2865 - 2580)/2580
Return Year 1 = 11.05%
New Investment
Abby's desire is to get the same return of 11.05%. So for the next year her investment should be 2580 * (1 + return) --> 2580 * (1 + 0.1105) = 2865.09.
Remember that we are assuming that the 50 are part of the purchase price and we are assuming that she did not add any money.
Answer:
Making a rational choice
Explanation:
The philosophy of rational choice claims that people use logical judgments to make rational decisions and deliver results that are consistent with their very own personal goals. Such findings are also linked with the highest, self-interests of a person.
The philosophy of rational decision is based on the conjecture of intervention of rational agents who are the people in a system making rational decisions based on rational judgments and knowledge that is rationally accessible. Rational individuals form the foundation of the philosophy of rational decision and are what makes the concept of rational choices efficient.
Answer:
D
Explanation:
Whether you have a loan or a credit card, making late payments or missing payments can cause your credit score to fall.
Answer:
The correct answer is C)A decrease in the money supply and an increase in the interest rate.
Explanation:
The Discount Rate is the interest rate that the Fed charges to commercial banks for 24-hour or less loans. Commercial banks turn to the FED for these loans when they are in an emergency situation, and are about to lose all reserves, and suffer a bank failure. This is why the Discount Rate tends to be higher than the federal funds rate.
If the FED increases the discount rate in order to apply contractionary monetary policy, the effect will be first a decrease in the money supply because banks will have less incentive to loan, and if they loan less, they create less money (remember than in a fractional reserve banking system banks create money), and thus, the money supply falls.
Secondly, this policy results in a higher interest rate because the less money supply, the less available loans, and the higher the interest rate on those fewer loans.
Answer:
- cash or stock payments to shareholders.
Explanation:
Dividends a payment declared by a company and given to its shareholders, These dividends can be issued as cash payments or as shares of stock.
The dividend is the reward that each investor receives for investing in the company, it usually originates from the company's net profit.
