Answer:
what i don't understand the question
Hello there!
Your answer would be C). Bank B for the car loan and Bank A for the savings account.
The reason why this would be your answer is because when you are opening a savings account, you want to make sure that the interest is high. However, when you get a new car, you want to make sure that the interest is low. Bank B provides a low interest rate, while Bank A provides a high interest rate.
Why are the two the opposite? Here's the answer:
Why you should get a high interest rate for a savings account:
You should get a high interest rate for the savings account because the interest you have for the savings account is the money that the bank will give you, so it's pretty much free money that the bank is giving you for having your money saved in their bank. If you want to get more money from the bank because of your savings account, then you should find one with a high interest rate.
Why you should get a low interest rate for a car (loan):
You should get a low interest rate for a car (loan) because the bank or people that you're loaning the money from is using interest to get your money. To make it easier, the people are using interests rates to make money, or profit, off of you. This is very important, interest rates DO NOT count towards the payment of the principal (amount to pay) for the car. In order for you to not help others make profit from you, you should get a car (loan) with a low interest rate, so you would be saving money and not help anyone use you as profit, and probably use that money for the car payments or other payments.
Answer:
a. $3,000 to have the vehicle restored
Explanation:
The computation of the financially better off amount is shown below:
= Sale value of the car after restored - restoration cost - sale value without any restoration cost
= $22,000 - $9,000 - $10,000
= $3,000
We simply deduct the restoration cost and the sales value without considering the restoration cost in the restoration sales value
All other information which is given is not relevant. Hence, ignored it
Answer:
Growth rate in dividend and earnings = 10%
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The model is given as
P = D× g/(r-g)
P- price of stock, g - growth rate in dividend, r- required rate of return
P- 22.50, r- 10.80%, g- ?
22.50 = ( 1.80 ×g)/(0.108-g)
Cross multiplying
22.50 × (0.108 - g) = 1.80 × g
2.43
- 22.50g= 1.80 g
1.80g + 22.50g = 2.43
24.3
g = 2.43
g= 2.43/24.3= 0.1
g = 0.1 × 100 = 10%
Growth rate = 10%
Answer:
a) see attached graph
b) slope = -1/2 = -0.5
c) slope = -1/3 = -.033
d) trading with Kwame (green line)
e) you should trade with Kwame since you can obtain more fish (up to 60 in total)
