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3 years ago

As you get closer to needing the money from an investment, what happens to your risk tolerance

Business

1 answer:

Sedbober [7]3 years ago

8 0

Risk tolerance gets lower and lower as you get closer to needing the money from your investment.

If you don't need the money for 50 years, you are more likely to take risks in the stock market or other higher risk investments in return for higher rewards. If you need the money tomorrow, you will not be willing to risk it all in the stock market because even though it <em>could </em>double, you might lose it all.

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________is the interest that the bank pays you on the principal plus on the_________ that you earned the preceding year.

Yuliya22 [10]

Answer:

Compound interest; interest.

Explanation:

Compound interest can be defined as the interest that the bank pays you on the principal plus on the interest that you earned the preceding year. Thus, it is simply calculated by adding an interest to the initial principal i.e compounding the interest rather than withdrawal.

Mathematically, compound interest is given by the formula;

$A = P(1 + \frac{r}{n})^{nt}$

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

7 0

3 years ago

Read 2 more answers

Bonita Industries has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $583000, an

Mice21 [21]

Answer:

<u><em>Total expenses 936,500</em></u>

depreciation 291,500

wages expense 645,000

Explanation:

Assuming the depreciation are calculate base on straight line or that their output is lineal through the year:

It will be half of the depreciation for the year.

583,000 / 2 = 291,500 depreciation expense for six-month

For the year-end bonused It wll be the same ideal, we assume are earned equally during the year. So at half year half of the bonuses should be earned:

wages expense 1,290,000/2 = 645,000

<u>Total expenses 936,500</u>

7 0

3 years ago

Which of the following is influenced by personal economic choices? Check all that apply.

alexdok [17]

These are factors that influences the personal economic choices that a person will decide:
-the resources you have available
-the money you decide to spend on leisure products
-the amount of money you put into your savings account
-and the manner in which you balance your time between work and leisure
In the answers above, the only choice that I did not check is number 1 because it is not a personal choice that is applied to everyone. resources and money are saved and used for personal choices of a person for leisure and needs.

3 0

3 years ago

The upper class makes up about 25 percent of the population in the United States. True or False

jeyben [28]

Yes that is correct :)

5 0

3 years ago

Read 2 more answers

Global market has decided to increase its market share by hiring a marketing rep to visit businesses in the area and invite thei

Doss [256]

In the condition given above where the global market intends to increase its market share by hiring representative for such purpose, the global market is said to be using communication strategy.

<h3>What is communication strategy?</h3>

A strategy, which is used by an organization for the purpose of interaction with the target audience of such organization, it is known as a communication strategy.

Hence, the significance of communication strategy is aforementioned.

Learn more about communication strategy here:

brainly.com/question/13363001

#SPJ1

3 0

2 years ago