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Hitman42 [59]
3 years ago
8

One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar

amounts. As an example, Samir is willing to drive 20 minutes out of his way to save $4 on a grocery item that costs $10 at a local market. But he is unwilling to drive 20 minutes out of his way to save $10 on a laptop that costs $400 at a local store.Instructions: Round your answers to 1 decimal place.a. In percentage terms, how big is the savings on the grocery item? percent. On the laptop? percent.b. In absolute terms, how big is the savings on the grocery item? Instructions: Enter your answers as whole numbers.$. _______On the laptop? $._________c. If Samir is willing to sacrifice 20 minutes of his time to save $4 in one case, shouldn’t he also be willing to sacrifice 20 minutes of his time to save $10?___________________________________________________________________________________________Ted has always had difficulty saving money, so on June 1, Ted enrolls in a Christmas savings program at his local bank and deposits $750. That money is totally locked away until December 1 so that Ted can be certain that he will still have it once the holiday shopping season begins. Suppose that the annual rate of interest is 10 percent on ordinary savings accounts (that allow depositors to withdraw their money at any time). How much interest is Ted giving up by precommitting his money into the Christmas savings account for six months instead of depositing it into an ordinary savings account?[Hint: If you invest X dollars at an annual interest rate of Y percent, you will receive interest equal to X × Y, where the interest rate Y is expressed as a decimal.]$.______________________________________________________________________________________________________Angela owes $500 on a credit card and $2,000 on a student loan. The credit card has a 15 percent annual interest rate and the student loan has a 7 percent annual interest rate. Her sense of loss aversion makes her more anxious about the larger loan. As a result, she plans to pay it off first—despite the fact that professional financial advisors always tell people to pay off their highest-interest-rate loans first. Suppose Angela has only $500 at the present time to help pay down her loans and that this $500 will be the only money she will have for making debt payments for at least the next year.Instructions: Enter your answers as whole numbers.a. If she uses the $500 to pay off the credit card, how much interest will accrue on the other loan over the coming year? $. ____________b. On the other hand, if she uses the $500 to pay off part of the student loan, how much in combined interest will she owe over the next year on the remaining balances on the two loans? $._____________c. By how many dollars will she be better off if she uses the $500 to completely pay off the credit card rather than partly paying down the student loan?[Hint: If you owe X dollars at an annual interest rate of Y percent, your annual interest payment will be X × Y, where the interest rate Y is expressed as a decimal.] $.______________________
Business
1 answer:
raketka [301]3 years ago
7 0

Answer:

She is better off by $40,

Please kindly go through the explanation section for rest of the answers.

Explanation:

From the Question,

Grocery saving = 40%

Laptop saving = 2.5%

Absolute saving in grocery = $4

Absolute saving in Laptop =$10

Yes he should sacrifice 20 mins to save $10 since he does the same for less savings

Second case:

Since Ted is depositing money for only 6 months at 10% interest rate, he is giving up half his annual interest of (0.1*750)/2 = $37.5

Third case:

Interest accrued on student loan = 0.07*2000 = $140

Interest on credit card = $75 + (0.07*1500) = $180

She is better off by $40.

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Q 10.7: Melbee Farms is considering purchasing a new combine that would help them finish their harvesting faster, thus allowing
LUCKY_DIMON [66]

Answer:

Discounted payback period= 3 years 1 month

Explanation:

The discounted payback period is the estimated length of time in years it takes the present value of net cash inflow from a project to equate the net cash the initial cost  

To work out the discounted payback period, we will compute present value of the cash inflow and then determine how long it will take for the sum to be equal to the initial cost. This is done as follows:

Year     Cash flow     DF        Present value  

0           487,000 × 1          = (487,000)

1          157,000 × 1.07^(-1) = 146,729.0

2         182,000 × 1.07^(-2) = 158965.8

  3         202,000 × 1.07^(-3) = 164,892.2

4         213,000  × 1.07^(-4) =162,496.7

Total PV for 2 years = 146729 +158965+164892= 470587.0

Balance of cash flow remaining to equal  =  487,000-470587 = 16413.0

 Discounted payback period = 3 years + 16413.0 /162,496.7 × 12 months

= 3year , 1.2months

Discounted payback period= 3 years 1 month

5 0
3 years ago
Employment agencies, career fairs, and Internet ads can all be sources of
Oksanka [162]

Answer:

D. Job leads

Explanation:

4 0
3 years ago
Read 2 more answers
A market Group of answer choices always requires face-to-face contact between buyer and seller. reflects upsloping demand and do
tatiyna

Answer:

Option C "is an........sellers" is the right answer.

Explanation:

  • The market is considered as a location wherever vendors as well as purchasers gather together or enable their exchange of goods and commodities of products or even just providers.
  • It could be like a department shop wherever individuals keep in touch throughout real life or virtually like such an internet market, where other businesses and consumers weren’t directly connected.

The provided situation isn't linked to other alternatives. Thus the above response is the right one.

7 0
3 years ago
The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nish
ollegr [7]

Answer: commitment

Explanation:

The Chief Executive Officer of Japan Airlines, who was Haruka Nishimatsu, was an example of a strategic leader who had a high performance.

The The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu commitment to the company.

4 0
3 years ago
Gulf Shores Inn is comparing two separate capital structures. The first structure consists of 300,000 shares of stock and no deb
tangare [24]

Answer:

The price per share of equity is $37.083

Explanation:

The first capital structure is purely equity based and Guld Shores will sell 300000 shares at price x to raise the needed capital.

The second structure is a mixed or leveraged structure where both debt and equity components are involved. The capital that needds to be raised remains constant.

Gulf has to give up 300000 - 252000 = 48000 shares and raise 1.78 million dollars from debt. We assumed that the amount that Gulf will raise is the ame from both th structures. Then 48000 shares at price x are equal to $1.78 million debt.

So, Price per share of equity is,

1,780,000 = 48000x

1780000 / 48000 = x

x or price per share = $37.083

6 0
4 years ago
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