Answer:
Both mutual funds and money market funds are similar in the sense that they pool money from several investors in a variety of instruments. The difference is that money market funds pool the money in very liquid, short-term securities, while mutual funds do the same but in less liquid, longer-term securities.
The 63-year-old neighbor should therefore split the money around 60/40, 60% of the funds for mutual funds, in order to have long-term security, and 40% in the money market funds, in order to have quick cash available when needed.
PW = FW×(1+i)^-n
PW = $19340×1.15^-1 + $2280×1.15^-2 + $26600×1.15^-3 + $24240×1.15^-4 + $8770×1.15^-5 = $54250.90
hence PW = $54250.90
Answer:
The operating income will be:
Total contribution($2.50 x 29,000) = 72,500
Less: Fixed cost = 31,200
Operating income = 41,300
Explanation:
The contribution per unit is $2.50. This per unit contribution will be multiplied by the number of units produced and sold in order to obtain total contribution. Operating income is the excess of total contribution over fixed cost.
Answer: The correct answer is <u>"c. decrease in demand".</u>
Explanation: Complementary goods are all those products that depend on each other. That is, they are so closely linked that the behavior of one inevitably affects the behavior of the other.
The classic example of complementary goods is that of cars and gasoline. The sale of the former may be affected by an increase in the price of the latter; and, at the same time, the consumption of the second depends on the sale of the first.
