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fiasKO [112]
2 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]2 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.

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2 years ago
The december 31, 2015, balance sheet of maria's tennis shop, inc., showed current assets of $1,145 and current liabilities of $9
Vitek1552 [10]

Net working capital is the difference between the Total Current Assets and Total Current Liabilities.

The December 31, 2015, balance sheet of Maria's tennis shop, inc., showed current assets of $1,145 and current liabilities of $935.

Hence, Net working capital as on December 31, 2015 shall be (1145-935) = $210


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7 0
3 years ago
Use your completed Reading Guide to answer the question. What was a result of the rise of the railroad industry? The cost of shi
Nat2105 [25]

Answer:

The rise of railroad industry led to the prosperity of cities like Chicago as they became railroad hubs.

Explanation:

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5 0
3 years ago
In the short run, fixed costs: Group of answer choices are an important feature in a firm's decision to produce or not produce.
Schach [20]

Answer:

remain constant.

Explanation:

The short run is a period where all  factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down

The long run is a period where all factors of production are varied. It is known as the planning time for a company

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If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

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Answer:

A. Evaluate performance

Explanation:

Evaluating a product's performance is the last stage of the buying process. The customer assesses the product's performance against expectations.  Customers are either satisfied with the product or not.

Evaluating performance is also the post-purchase evaluation stage. Satisfied customers feel they made the right decisions. Marketers always ignore this last process, but it's very important. One way to create loyal customer is the contact customer after the purchase to check if they are happy with the product.

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