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
alexandr1967 [171]
3 years ago
15

Suppose the interest rate is 4.0 %. a. Having $ 200 today is equivalent to having what amount in one​ year? b. Having $ 200 in o

ne year is equivalent to having what amount​ today? c. Which would you​ prefer, $ 200 today or $ 200 in one​ year? Does your answer depend on when you need the​ money? Why or why​ not?
Business
1 answer:
Natalija [7]3 years ago
5 0

Answer:

a. Having $200 today is equivalent to having 200(1\ +\ .04)^{1} = $208

b. Having $200 in one year is equivalent to having \frac{200}{(1\ +\ .04)}  i.e $192 today.

c. $200 today would be preferred since $200 received one year hence will have lower present value i.e it would be equivalent to $192 received today.

d. The answer provided above in (c) did not take into consideration the requirement or need. It only considered time value of money. If money is required today, it will be availed today irrespective of the time value of money principle since needs override principles.  

You might be interested in
3. Why would the sale of counterfeit products through its sites be damaging to Alibaba?
timurjin [86]

Reputation.

If a company has a bad reputation of allowing the sale of counterfeit goods, buyers will not trust the site and will not buy from it.

3 0
3 years ago
Read 2 more answers
The _________ strategy involves a firm using different marketing mix activities to help consumers perceive the product as being
nadezda [96]

Answer:

product differentiation

Explanation:

A product differentiation strategy focuses on distinguishing your company's products or services from the competition. The company must add meaningful and valued differences that will distinguish our product or service in order for our customers to view them as different or better. The goal of a differentiation strategy is to gain a competitive advantage since customers associate differentiated products to higher quality products.

7 0
3 years ago
Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have the
Allisa [31]

Answer:

Cobras Incorporated

Trial Balance as at March 31.

                                             Debit          Credit

Supplies                                 $1,100

Buildings                             $41,000

Cash                                      $2,100

Accounts Receivable          $2,800

Prepaid Insurance                 $1,100

Salaries Payable                                        $300

Accounts Payable                                   $1,500

Common Stock                                      $21,000

Retained Earnings                                 $14,500

Service Revenue                                    $18,100

Utilities Expense                 $2,300

Salaries Expense                $5,000

Totals                                 $55,000     $55,000

Explanation:

A Trial Balance is used to check mathematical accuracy in ledger Accounts. It represents a list of Balances : Debit and Credit extracted from the Ledger Accounts.

7 0
3 years ago
What is economic planning and its objectives plz help me
guajiro [1.7K]

Answer:

The basic objective of planning is to exercise control over the private sector of an economy. ... When the economic resources of the country are rationally arranged with a predetermined purpose, it is called economic planning. It usually refers to planning by the State.

hope it helps

5 0
3 years ago
Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them. It accepted
posledela

The Volvo of North America delivered automobile to the Siberian police force when Siberia had no cash to pay for them. It accepted by the payment in oil, which it then sold for cash to pay for media advertising in the U.S. example of <u>counter-trade</u>.

Answer: Option B

<u>Explanation:</u>

The word counter trade means it is an exchange goods or services which are paid for wholly or partly with other goods or services either than with money. However, counter trade used for accounting purposes. In this case counter trade deals between sovereign states.

7 0
3 years ago
Other questions:
  • In the real business cycle model, this best explains an increase in real GDP above the full-employment level?
    13·1 answer
  • The owners of a chain of​ fast-food restaurants spend $ 25 million installing donut makers in all their restaurants. This is exp
    9·1 answer
  • Mr. Brown asked the parents of one of his students to meet with him. He acknowledged their demanding work schedule and agreed to
    9·2 answers
  • Apple's $3 billion acquisition of Beats Electronics and Beats Music in 2014 was an attractive strategy option for entering promi
    11·1 answer
  • All functions and departments in the enterprise have tasks that they need to complete to produce outputs or ________ in order to
    10·1 answer
  • Prepare a three column cash book from de following information
    14·1 answer
  • Free cash flow (FCF) and net income (NI) differ in the following ways:
    14·1 answer
  • It is possible to observe a positive nominal interest rate together with a negative real interest rate. a. True b. False
    9·1 answer
  • During production, the crew most closely associated with the camera consists of ________. a. the director and the production man
    14·1 answer
  • If a company decreases its sales price per unit, the new breakeven point will?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!