1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fiasKO [112]
3 years ago
5

Riley says that the present value of $700 one year from today if the interest rate is 6 percent isless than the present value of

$700 two years from today if the interest rate is 3 percent. Anh saysthat $700 saved for one year at 6 percent interest has a smaller future value than $700 saved fortwo years at 3 percent interest.a. Both Riley and Anh are correct.b. Both Riley and Anh are incorrect.c. Only Riley is correct.d. Only Anh is correct.
Business
1 answer:
devlian [24]3 years ago
6 0

Answer:

A) Both Riley and Anh are correct.

Explanation:

to see who is right we can calculate:

PV = FV / (1 + r)ⁿ

FV = PV x (1 + r)ⁿ

Riley's statement:

PV = $700 / (1 + 6%) = $660.38

PV = $700 / (1 + 3%)² = $659.82

Riley is right

Anh's statement:

FV = $700 x (1 + 6%) = $742

FV = $700 x (1 + 3%)² = $742.63

Anh is right

They are both right due to compound interest, since compound interest means that the interest earned will also earn more interest.

You might be interested in
An estimated demand curve does not necessarily match actual data perfectly because A. it is not possible to accurately calculate
LekaFEV [45]

Answer:

C. some factors that are not measured or observed may affect the curve.

Explanation:

a lot of unforeseen circumstances might occur. these occurrences would not be measured in the estimated demand curve. this would lead to the estimated demand curve not matching the actual demand curve.

for example, the factors affecting the demand for bread are ; price, income, price of a substitutes. these are included in estimating the demand curve for bread. Assume that a study comes out stating that bread is harmful to the health.this reduces the demand for bread. this study wasn't anticipated and included in estimating the demand curve. as a result, the actual data would differ from the estimated data  

5 0
3 years ago
An investment advisor has a client base composed of high net worth individuals. In her personal portfolio, the advisor has an in
e-lub [12.9K]

Answer: c. recommend Torex, but she must disclose her investment in Torex to the client.

Explanation:

The investment advisor is allowed to recommend Torex to her clients as she believes that it is financially sound and undervalued which means that there is a chance for her clients to earn a good enough return.

She must however disclose to them that she has an investment in the company so that they can decide on their own if this may have biased her decision towards the company as a viable investment option.

3 0
2 years ago
Question 3 of 10
Stels [109]

Answer:

underrepresented student scholarship.

7 0
2 years ago
Read 2 more answers
Three graduate business students are considering operating a fruit smoothie stand in the Harbor Springs, Michigan, resort area d
Leviafan [203]

Answer:

a. 8,000 + 1,000 + 3.2Q

b. 27,000 + 3.2Q

c. 15,000 Units

Explanation:

a. The accounting cost function is shown below:-

Accounting cost function = Fixed Leasing and insurance cost + material cost and supplied cost

= 8,000 + 1,000 + 3.2Q

b. The economic cost function is shown below:-

Economic cost function  = Accounting cost + Opportunity cost

= 9,000 + 3.2Q + 3*6,000

=27,000 + 3.2Q

c. The computation of break even point is shown below:-

Break even Point = Total Fixed Cost ÷ Price - Average Variable cost

= 27,000 ÷ 5 - 3.2

= 15,000 Units

8 0
3 years ago
Consumers often seek bargains by purchasing goods in large quantities; for example, buying in bulk at Costco or buying larger bo
Nimfa-mama [501]

Answer:

The correct answer is the option B: second-degree price discrimination.

Explanation:

To begin with, the term of price discrimination, in marketing and economics, refers to the action of charge different prices to different consumers for the same product that do not vary in quality. This concept states fourth differents degrees in order to use the most beneficial strategy to one's company.

To continue,<em> the second-degree price discrimination</em> establishes that companies price products differently based on the preferences of various groups of consumers and furthermore it is very common to <u>apply this type of discrimination through quantity discounts</u> and to add an example, is very common to use this strategy in <u>warehouse retailers such as Costco.</u>

6 0
3 years ago
Other questions:
  • Troy starts a job right out of college. He feels lucky to have found a position in the financial industry. Troy knows that he ne
    15·1 answer
  • The country of Norway has offers free college to students and even some universities offer free tuition to international student
    9·1 answer
  • What is consumer vigilance? Select the best answer from the choices provided. A. being aware of risks to consumers B. being fear
    12·1 answer
  • GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in adv
    5·1 answer
  • For a new small business, it's usually best to have what kind of scope?
    10·2 answers
  • Using time and materials pricing, what is the total price for a job requiring 3 direct labor hours and $57 of materials?
    6·1 answer
  • In many services, the acquisition and allocation of capacity plays a significant role in determining the level of operational re
    14·1 answer
  • One of the growers is excited by the price increase caused by the blight because he believes it will increase revenue in this ma
    7·1 answer
  • What is legal citizenship defined as
    11·1 answer
  • ____________ reflects the understanding that the cost of repairing an unexpected breakdown is usually much greater than preventa
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!