You are comparing two investment options that each pay 6 percent interest, compounded annually. Both options will provide you wi
th $12,000 of income. Option A pays $2,000 the first year followed by two annual payments of $5,000 each. Option B pays three annual payments of $4,000 each. Which one of the following statements is correct given these two investment options? Assume a positive discount rate. Both options are of equal value since they both provide $12,000 of income. a. Option A has the higher future value at the end of year three.b. Option B has a higher present value at time zero.c. Option B is a perpetuity.d. Option A is an annuity.
Answer: The correct answer is <u>"d.All of these statements are true."</u>
Explanation: In order to have a certificate in public accounting, a national examination must be taken and among the multiple functions the accountants who have a certificate in public accounting are those who can be external auditors and are responsible for the reports they issue about the reliability of the financial statements of a company.
I believe the answer is 'all of the above are true' Written warranty refers to the written agreement beetween buyer and sellers in order to guarantee a certain type of transaction based on specifics situations that may occur in the future. (in most cases, it can only be claimed if the product is broken or need some new parts)
The kind of motivation at play based on the consumer’s behavior in the given scenario is <u>irrational motive</u>
There are two kinds of motives in consumer behavior which includes:
Rational motives: This has to do with making a purchasing decision based on the best decision available that would give maximum satisfaction.
Irrational (emotional) motive has to do with those decisions that a consumer makes based on how he <em>feels </em>about a particular product, without considering utility (satisfaction)
Based on the given scenario, we are told that Lila is going to purchase a couch and she goes to the store to get one. When she gets there, she notes a comfortable cushion, but makes the decision to get a less comfortable for "reasons she cannot explain". This is an example of Irrational (emotional) motive