Answer: Option (A) and (D) are correct.
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Both option (A) and (D) indicates that there is some opportunity cost associated with it.
Let the dealer know you are shopping around. Why? Because they will try to rope you in to only go through them.
Answer: The difference in the two future values is $2703.79.
We arrive at the answer at follows:
We need to find the future value of these investments.
<h3><u>
A. First investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 12%
No. of years (n) 7
No. of compounding periods per year (m) 12 (monthly)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3>B<u>
. Second investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 13%
No. of years (n) 7 No. of compounding periods per year (m) 2 (semi-annual)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3><u>C. Difference between the two Future values</u></h3>
Answer:
a) Services such as web
b) International trade agreements
c) Better high-speed rail lines
Explanation:
a) Services such as web conferencing and teleconferencing that facilitate international meetings International trade
Trading Partners are able to reach each other way faster and conclude deals in times that would be considered a record in the 50's. Transaction costs have also been reduced enabling more trade.
b) International trade agreements such as the General Agreement on Tariffs and Trade (GATT)
Such agreements have reduced barriers to entry for companies doing business across borders. This has had the effect of trade increasing dramatically to take advantage of these agreements.
c) Better high-speed rail lines
With advancements in railway technology leading to faster rail lines, trade has moved at an unprecedented pace, taking advantage of one of the main conduits for international trade to move goods across borders to get goods to consumers quicker.