The answer for this question is Steve's opportunity cost of a basket of pineapples is two fish while his opportunity cost of a fish is two basket of pineapples while Craig’s opportunity cost of a basket of pineapples is one fish; his opportunity cost of a fish is a basket of pineapples.
Answer:
The correct answer is letter "C": The effective annual rate equals the annual percentage rate when interest is compounded annually.
Explanation:
Interest Rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates are the primary yardsticks for measuring how much return lenders will get.
The effective annual interest rate is a way of restating the annual interest rate so that it takes into account the effects of compounding. Using the effective annual interest rate helps us understand how differently a loan or investment performs if it compounds annually, semiannually, monthly, or in any other time frame. If compounded annually, the effective interest rate equals the annual percentage rate.
Answer:
A. When GDP falls, unemployment rises.
Explanation:
Answer:
The investor will pay up the rereofitted pumps in a period of 22.52 months.
Explanation:
<em><u>First,</u></em> we solve for the amount of profit generate per month:
21,000 gallons a month x $0.09 per gallon = $1,890
Now, we calcualte the time at which an monthly income of 1890 discounted at 2% per month matches a present value of 34,000
C $1,890.00
time n
rate 0.02
PV $34,000.0000
We use logarithmics properties to solve for n:
-22.52006579
n = 22.5200 = 22 and a half month.
