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
AleksAgata [21]
3 years ago
8

A recent college graduate from Clayton State University has the choice of buying a new car for $33,500 or investing the money fo

r four years with an 11% expected annual rate of return. He has an investment of $41,000 in equities and bonds which yields 8% expected annual rate of return. If the graduate decides to purchase the car, the best estimate of the opportunity cost of that decision is
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

$3,280

Explanation:

The annuity factor of 11% at four years will be;

annuity = (1 - 1 / (1 +r)^n ) / r

annuity = 3.102

P = Pmt * annuity

P = 41,000 * 3.102

P = 127,182

If college graduate decided to buy a car then the annual yield that he receives from the investment in bonds will be opportunity cost.

$33,500 * 8% = $3,280

You might be interested in
Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality includ
balandron [24]

Answer:

Differences in abilities and talents

Explanation:

Income inequality refers to variation or discrepancy between income levels of individuals. Income inequality arises on various accounts one of which being, difference in abilities and talents.

All individuals possess different skill sets and their efficiencies vary too. Some individuals are more creative and talented than others while some are more laborious and hardworking.

Each skill set has it's own demand and thus, income is fixed as per the demand of a particular skill set for a given sector.

This leads to some earning lot more than others and differences in pay scales as per the abilities individuals possess.

6 0
3 years ago
Bart is a lawyer and an employee of Alway, Inc. Bart is representing Alway in its purchase of Steel Co. Bart learns from Alway's
Vinil7 [7]

Answer:

C. be held liable under the misappropriation theory of insider trading.

Explanation:

Insider trading refers to the practice of utilizing confidential information that is not available for the public in order to make a profit in stock market. Currently, this action is deemed as illegal ever since the  The Insider Trading Sanctions Act was created in  1984 .

The Security and Exchange omission created that act in order to ensure that no investors have to experience unfair situation in the market . Having confidential information will make it really easy for a person to predict whether the price of the stock will go up or down.

This can be seen In Bart's action. Pay attention to this part of the excerpt:

<em>Bart learns from Alway's company files that Steel Co. is in the final stages of negotiation for a highly profitable </em>

6 0
3 years ago
What is the most efficient way to adjust the size of the picture?​
Marat540 [252]

Answer:

Our easy-to-use Image Resizer lets you adjust the size of your photos without compromising quality. ... accidentally distort your images, and the fun house look isn't the most flattering for photography. ... The best part, this step is super easy!

Explanation:

7 0
3 years ago
How do banks make a profit?
fiasKO [112]
Banks make a profit by c. charging interest
8 0
3 years ago
Which of the following influences the consumer when he or she is deciding wether to buy a product?
Georgia [21]

Answer:

D.

Explanation:

The factors that infuence a consumer's decision of buying product are multiple. It can be internal, external, economic, cultural, etc.

These factors include psychological factor, social factor, cultural factor, situational factor, etc.

Many times it's psychological factors such as moods. If a person is in bad or good mood, it will affect his behavior to buy a product. Culture or social life also influences consumer's buying habit. Some buy under peer pressure or to have status in society.

Therefore, option D is correct.

5 0
3 years ago
Read 2 more answers
Other questions:
  • A closed economy a. does not engage in international borrowing or lending. b. does not engage in international trade of goods an
    14·1 answer
  • You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in invento
    8·1 answer
  • At the first meeting, team members appear to have a difference of opinion regarding the direction of the project. Robin and Khal
    11·1 answer
  • At the Sunny Solutions Company, employees are involved in decision making and promised long-term employment. The employees follo
    10·1 answer
  • Regardless of whether a tax is levied on sellers or buyers, taxes encourage market activity.
    11·1 answer
  • Carver Packing Company reports total contribution margin of $80,200 an pretax net income of $40,100 for the current month. In th
    6·1 answer
  • Able Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay
    9·1 answer
  • Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity
    11·1 answer
  • intangible assets that are acquired from other entities are referred to as purchased intangibles, whereas intangibles that are c
    14·1 answer
  • You are considering investing in a project with the following possible outcomes: States Probability of Occurrence Investment Ret
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!