Ceteris paribus, based on the aggregate demand curve, if the price level _______ the quantity of real output ______

You have been awarded an insurance settlement of $211,400 that is payable one year from today. What is the minimum amount you sh

Gekata [30.6K]

If you can make 6.3 percent on the investments, the minimum amount you should take today in exchange for this settlement is $198,871. (Approx).

<h3>What is the present value?</h3>

The current value of a future sum of money or stream of cash flows, assuming a certain rate of return, is known as present value (PV).

In the given case, there is a need to find out the present value of $211,400.

<u>Computation</u>:

According to the given information,

Present value = $211,400 × 1/(1 + r)n

Present value =$211,400× 1/1.063

Present value =$211,400× 0.940734

Present value =$198,871(Approx).

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8 0

2 years ago

A franchise can be among the more expensive business to start because

nataly862011 [7]

............................... b...............................

5 0

3 years ago

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housing is a generic term that includes any form of housing that is manufactured by precision techniques in a factory setting an

natita [175]

Factory built Housing is a generic term that includes any form of housing that is manufactured by precision techniques in a factory setting and then transported to the building site for final assembly.

<h3>What is Factory built Housing?</h3>

Factory-Built Housing can be described as the residential building as well as dwelling unit and it can as well be regarded as the individual dwelling room where parts can be stored.

It should be noted that this could be the combination of rooms, as well as the building components, assembly, which help to concealed parts or processes of manufacturing before installation.

Hence , Factory built Housing is a generic term that includes any form of housing that is manufactured by precision techniques in a factory setting and then transported to the building site for final assembly.

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CHECK THE COMPLETE QUESTION:

---------------housing is a generic term that includes any form of housing that is manufactured by precision techniques in a factory setting and then transported to the building site for final assembly.

5 0

2 years ago

A firm’s liquidity level decreases when:_______.

katovenus [111]

Answer:

b) inventory is sold on credit.

Explanation:

Liquidity is defined as the a business to use its current assets to settle it's current liabilities.

This is calculated by using the working capital ratio.

Working capital ratio = Current assets ÷ Current liabilities.

Cash and inventory contribute to a business' liquidity.

When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.

A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)

5 0

3 years ago

Match each scenario with the correct term. IPO, stock, mutual fund and NASDAQ. These are the scenarios:

earnstyle [38]

a small piece of ownership in a company - stock

a company’s initial offering of stock - IPO

a portfolio of stocks and bonds - mutual funds

a public stock exchange - NASDAQ

5 0

3 years ago

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Ceteris paribus, based on the aggregate demand curve, if the price level _______ the quantity of real output _______ increases.

Ceteris paribus, based on the aggregate demand curve, if the price level _ the quantity of real output _ increases.