A = P (1 + I)^n
40000 = 5000 (1 + 0.07)^n
(1.07)^n = 40000/5000 = 8
ln(1.07)^n = ln8
nln1.07 = ln8
n = ln8/ln1.07 = 30.7...
The best answer is closest to (d) 30.6 years.
Answer:
c. Universal Computer Corp.’s purchase of a competitor’s subsidiary.
b. Atlanta Aeronautics Co.’s purchase of a new piece of equipment.
Explanation:
Consider the following definition.
What is capital Budgeting ? Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.
Make sure the brand conveys what is <em>unique </em>about your company.
If you don't focus on the customer or make your product/brand unique you won't stand out in the marketplace and customers will not want to choose your product.
Answer:
B) As long as the Fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation.
Explanation:
If the FED announces that it will increase the federal funds rate, it will increase the interest that banks charge other banks for lending them money in order to comply with the reserve ratio. This increase would make banks hand out less loans and be more careful in order to reduce their need for overnight funds.
If banks reduce their loans, their capacity for creating money will also be reduced, lowering the consumption level and investment spending of both workers (households) and private firms.
