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iren [92.7K]
3 years ago
11

Your sister has just been told that she will be given a $1,000 bonus next year. She is very eager to know its present value. So,

she applies the ______________ process to estimate the present value of her gift.
a. growth analysis
b. discounting
c. accumulating
d. compounding
e. reducing
Business
1 answer:
beks73 [17]3 years ago
5 0

Answer:

b. discounting

Explanation:

Your sister has just been told that she will be given a $1,000 bonus next year. She is very eager to know its present value. So, she applies the <u>discounting</u><u>  </u>process to estimate the present value of her gift.

Discounting: It is a mechanism used for determine the present value of money, which is going to be paid in future. As debtor use this mechanism to delay payment of creditor for a certain period of time in exchange of some fees or charge to be paid. As time value of money change and it does not remain same.

There are mainly three type of discounting:

  • Trade discount
  • Quantity discount.
  • Cash discount.

Hence in the given case, she applies the discounting process to estimate present value of her gift.

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a. After the magazine The Economist publishes an article indicating that analysts expect the value of Tunisian dinars to rise re
german

Answer: Depreciate

Explanation:

The Economist is a widely respected financial and economic magazine which means that their articles can cause movements in the market especially when backed up by analysts.

The Economist believes that the Tunisian Dinar will rise relative to the Peruvian Sol, this means that the Peruvian Sol will depreciate against the Tunisian Diner. Some people and entities holding Peruvian Sol assets will try to offload it so that they do not suffer losses.

This increase in supply and reduction in demand for the Peruvian Sol will lead to it depreciating.

3 0
3 years ago
Suppose Jose splits his spending across scones and coffees. Due to droughts in coffee-producing regions, the price of coffee dou
Slav-nsk [51]

Answer:

He will be less likely to spend on scones.

Explanation:

Understanding the spending pattern requires to understand the factors involving in purchasing.

  1. Income: Some people live tightly, and for that they have to cut down their expenditures and that affects their spending. Jose will not have much issues although buying scones because they will not be expensive, so this relationship is negative.
  2. Substitution: This will probably affect the the spending of Jones on scones because he used to buy both together, and if he stops spending on coffee he will not buy scones as well.
7 0
3 years ago
The reservations department of a major airline meets weekly to discuss ways to improve the sales quota. Whenever they meet, Sam
erik [133]
Yes because there is no individual opinion, creative input.
4 0
4 years ago
shelly is 3 years older than Michele. four years ago the sum of their age was 67. find the age of each person now.
mash [69]
This was 4 years ago - 32 Michele - 35 Shelly
Now - Michele is 36, Shelly is 39

7 0
3 years ago
Jonah tells his friend Derek that he would like to go parasailing. Derek is very enthusiastic and suggests that they try an outf
nekit [7.7K]

Answer:

- Derek is an agent of Jonah

- Derek failed in his fiduciary duties to his principal

Explanation:

An a agent is someone that is appointed by a principal to take care of their interests. The agent's loyalty is to only his principal and he should not manipulate the relationship for personal gain.

In the given scenario Jonah appointed Derek to arrange for parasailing activity. So he is an agent to Jonah in this respect.

However Derek chooses an outfit called Wind Beneath My Wings where he is an owner, he put aside $600 instead of $350 for the reservation, and the company is unlicensed.

All these are violations of Derek's fiduciary duty. He put Jonah at risk for his own personal gain.

8 0
3 years ago
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