Answer:
the amount of money that must be invested now is $21068.87
Explanation:
Given that:
Nominal interest = 10%
Annuity = 7000
n = 8 years
The Effective interest rate is calculated by using the formula:
Effective interest rate = 
Effective interest rate = 
Effective interest rate = 0.1045
Effective interest rate = 10.45 %
Thus ; the the amount of money that must be invested now is the present value with the annuity of $7, 000 per year for 12 years, starting eight years from now.
PV = 7000 × 6.666056912 × 0.4515171371
PV = $21068.87
Thus; the amount of money that must be invested now is $21068.87
Answer:
The correct answer is (A)
Explanation:
Monopoly and monopolistic competition are similar in many ways. In both type of markets the firms are usually the price makers. Being the only firm in the market gives them an opportunity to earn abnormal profits and in both cases firms earn abnormal profits. Perfect competition is a type of market that is totally different in terms of number of sellers and buyers. In perfect competition firms are the price takers.
Answer:
Proximity, convenience, and the lack of alternatives are all factors that can cause unhappy customers to return (and perhaps improve their opinion). However, competition is much fiercer when it comes to e-commerce
1) Lowering the discount rate can promote full employment because companies are more likely to expand and hire more workers. The answer is the third statement.
2) The circumstance that usually accompanies a period of economic expansion is high inflation. The answer is the second phrase.
Answer:
8.8%
Explanation:
Given:
Excess return = 6% = 0.06
Return respond factor = 1.2
Expected higher percent = 1.5% = 0.015
Increase growth (stock price) = 1% = 0.01
Actual excess return = ?
Computation of actual excess return:
Actual excess return = Excess return + Increase growth (stock price) + [Expected higher percent × Return respond factor]
= 0.06 + 0.01 + [0.015 × 1.2]
= 0.07 + [0.018]
= 0.088
= 8.8%
