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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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Pat Jones is a college student who is planning some networking opportunities for the current l semester. Pat wanted to look
DaniilM [7]

Answer:

1. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.

2. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.

3. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.

Explanation:

7 0
3 years ago
The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some coun
Eva8 [605]

Answer:

4000

Explanation:

Calculation to determine how many units of foreign currency does the same basket of goods cost in that country

Based on the information given we were told that the PRICE OF A BASKET OF GOODS is the amount of $2000 in which the dollar buys TWO UNITS of some country’s currency, now let determine HOW MANY UNITS of foreign currency does the same basket of goods cost in that country

Using this formula

Units of foreign currency=Basket of goods price*Some country’s currency units

Let plug in the formula

Units of foreign currency=$2,000* 2 units

Units of foreign currency=4,000 units

Therefore the number of units of foreign currency that the same basket of goods cost in that country is 4,000

The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some country’s currency, then how many units of foreign currency does

7 0
3 years ago
Karen and Mike currently insure their cars with separate companies, paying $400 and $600 a year. If they insured both cars with
Papessa [141]

Answer:

$1,720

Explanation:

Total annual premium for both Karen and Mike = $400 + $600 = $1,000

If they insured both cars with the same company, they would save 15% on the annual premiums -> the annual saving = 15% * $1,000 = $150

We use formula FV to calculate the future value of annual payment:

= FV(rate, number of payment, - payment) = FV(3%,10,-150) = $1,720

4 0
3 years ago
Purchasing office supplies on account will: Multiple Choice Not change assets. Increase assets and decrease liabilities. Increas
Kobotan [32]

The correct option is C - Increase assets and increase liabilities

<u>Explanation:</u>

When anorganization purchases office supplies on account then it becomes essential to record such supplies as supplies on hand. Generally, in a business organization, the supllies on hand are used up within the span period of one year which means that they are to be recorded as current asset in the financial statement ( balance sheet). As no cash has been paid to merchandise, so it increases the liabilities also.

Therefore, it will increase the current assets and current liabilities.

3 0
3 years ago
The real per capita GDP in country X is 4 times of that in country Y. The annual growth rate in country X is 2.33%, while in cou
tigry1 [53]

Answer:

It will take 30 years for country Y’s GDP to catch up with that of country X

Explanation:

In this question. We are asked to calculate the number of years it will take a certain country Y to catch up with the GDP of a certain country X, given the annual growth rate in both countries.

We calculate the number of years as follows;

Firstly, we assign a variable to the value of the real GDP of country Y

let real

Let the real GDP of the country Y be n. This means that the GDP of country C will be 4 * n = 4n

With a 7% growth rate annual, country Y's Real GDP will be doubled in 70/7 = 10 years and;

With annual growth rate of 2.33% ,country x's Real GDP doubles in 70/2.33 = 30 years.(Approx)

Now in next 30 years x's Real GDP will be = 2x4n = 8n

and Y's Real GDP in next 30 years will be = 2x2x2xn = 8n.

thus , it will take 30 years to country Y to catch up to the level of country x.

7 0
3 years ago
Read 2 more answers
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