Your bank account has 3,500 in it. You add 2,000 to your account because someone gave it to you. That will leave you with 5,500 But, its time for you to make out your monthly bills. So take your 5,500 in your account and subtract 2,500. it will leave you with a cash balance of 3,000.
Answer:
A. Market Timing
Explanation:
Based on the information provided within the question it can be said that the term being described within the question is called Market Timing. Like mentioned in the question this term refers to a strategy of buying and selling different financial assets, usually by trying to take advantage of price discrepancies in the short term.
Answer:
<u>Annual rate of return which will be earned from today is 5.89%</u>
Explanation:
FV = PV (1+r)^n
r is int Rate per anum abd n is balance period
10000 = 6700 ( 1 + r)^n
10000 = 6700 ( 1 + r)^7
( 1 + r)^7 = 10000 / 6700
= 1.4925
1+r = 1.4925^(1/7)
= 1.0589
r = 1.0589- 1
= 0.0589 i.e 5.89%
