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dybincka [34]
3 years ago
6

if interest rates are positive, the future value of a given sum will always be less than the present value

Business
1 answer:
Alexeev081 [22]3 years ago
5 0

Answer:

False. If interest rates are positive, the future value will always be more than the present value.

Explanation:

Future value is given by:

FV = PV (1 + i)^{n}

wherein, FV=  Future Value

              PV= Present Value

              i = rate of interest per period

              n = number of periods

So, if interest rates are positive, the current investment shall be compounded to arrive at Future value which would turn out to be more than the present value.

For example, $ 100 invested today at 10% per annum, after an year would yield $110. This represents future value.

In case future value is provided as 110$ and rate of interest is given as 10% per annum, such future value discounted at 10% would give $100 today which represents the present value.

Thus, Future value will always be more than the present value if interest rates are positive.

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Suppose that the weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150 (
nadezda [96]

Answer:

Total Cost increase  5,253.4 unit

Explanation:

given data

weekly price a = $3.40 per gallon

ramp up weekly b = 35%

ramp up weekly  upto x = $150( in hundred)

solution

we will use here the regression equation that is

Y = a + b x    ...........................1

here Y is Total Cost and a is fixed cost and  

b is rate of variability and x is level of activity

so here put value in equation 1 we get

Total Cost Y = 3.40 + 0.35 × ( 15,000)

Total Cost  Y = 3.40 + 5,250

Total Cost increase  5,253.4 unit

7 0
3 years ago
Identical products, as well as a large number of buyers and sellers, are characteristics of aperfectly competitive market. In su
koban [17]

Answer: "In such markets, sellers of goods can influence the prevailing market price, giving them the role of price in the market." is wrong ,

The correct statement is "In such markets, sellers of goods CAN'T influence the prevailing market price, giving them the role of price TAKERS in the market".

"The market for tomatoes does not exhibit the two primary characteristics that define perfectly competitive markets." is FALSE because the market of tomatoes does exhibit the two characteristics:

  • Identical products.
  • Large number of buyers and sellers

8 0
3 years ago
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $265,000, vari
Bogdan [553]

Answer:

$57,300

Explanation:

Calculation to determine the company's net operating income

Sales $840,000

($265,000+$575,000)

Less Variable expenses $463,400

($141,600+$321,800)

Contribution margin $376,600

($840,000-$463,400)

Less Traceable fixed expenses $193,100

($66,800+$126,300)

Divisional segment margin $183,500

Less Common fixed expenses $126,200

Net Operating Income $57,300

Therefore the company's net operating income will be $57,300

7 0
3 years ago
Blossom Company has the following transactions related to notes receivable during the last 2 months of 2019. The company does no
Sunny_sXe [5.5K]

Answer:

Nov 1    Notes Receivable-C Bohr      66000 Dr

                        Cash                                66000 Cr

Dec 11   Notes Receivable-KR Pine      5400 Dr

                        Sales Revenue                 5400 Cr

Dec 16  Notes Receivable-A Murdock 7200 Dr

                        Accounts Receivable       7200 Cr

Dec 31  Interest receivable                   598 Dr

                        Interest Revenue                598 Cr

Explanation:

We need to calculate the interest accrued on all the notes. We will then add the interests on these notes and credit interest revenue by that amount and debit interest receivable.

<u />

<u>Interest revenue on Note 1</u>

Interest Revenue = 66000 * 0.05 * 2/12 = $550

<u />

<u>Interest revenue on Note 2</u>

Number of days interest is accrued for is 20 days (31-11=20)

Assuming a 360 day year.

Interest revenue = 5400 * 0.07 * 20/360 = $21

<u />

<u>Interest revenue on Note 3</u>

No of days interest is accrued for is 15 (31-16 = 15)

Assuming a 360 day year.

Interest revenue = 7200 * 0.09 * 15/360 = $27

Total Interest revenue = 550 + 21 + 27 = $598

5 0
3 years ago
does anybody know of any business websites for high school students to know how to start a business for free
ryzh [129]
Yes!
JGwentworth.com
xnxx.com

6 0
3 years ago
Read 2 more answers
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