Commit to buy more in the future
Answer:
$245.09
Explanation:
A service contract for a video projection system costs $90 a year. You expect to use the system for three years.
Instead of buying the service contract, the future value of these annual amounts after three years if you earn 5 percent on your savings will be:
PV
Ordinary Annuity
=C×[ ((1−(1+i) ^−n
) / i ]
where
n = number of years = 3
i = interest rate = 5%
Present Value of the annuity = 90 x [ ((1 - (1+0.05)^-3) / 0.05] = $245.09
Answer: Investing Activities
Explanation: The investing activities lists all of the purchases and sales of long-term fixed assets, such as equipment, building, land, and the purchase of shares.
Hope this helps.
Explanation:
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Answer:
A. can afford to take on additional risk; increases
Explanation:
Saying that Risk and Return go hand in hand, tells us that you <u>can afford to take additional risk </u> as the length of the investment horizon <u>increases</u>. Increasing the length of the investment horizon increases the ability to take on additional risk because in the long run the investment pays off while it may be choppy in the short time horizon.
