Answer:
PV= $8,447
Explanation:
Giving the following information:
Future value= $13,000
Number of months= 9*12= 108
Interest rate= 0.4/100= 0.004 compounded montlhy
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 13,000/(1.004^108)
PV= $8,447
Answer:
The risk of recession will most likely cause the company's shareholders to demand a higher return.
Explanation:
If the company loses some customers, more might be attracted to the company. However, if the prices drop, the price might stay low and cause the financial value of stock to drop. Once the stock drops, the entire company loses money along with their stock, which is determined by their profit and loss.
<span>speculating in currency markets</span>
Answer:
The correct answer is that the company should <u>charge more to the business travelers</u> and <u>charges less to the vacationers</u>.
Explanation:
To begin with, the concept called ''elasticity'', in the field of economics, refers to the variation that occurs when a change in one variable affects a change in another variable. Moreover, this concept has many applications regarding if the main subject is the supply of a product or the demand of a product.
Secondly, the <em>price elasticity of demand</em> is an elasticity application in economics that establishes the changes that occur to the demand of a product when the price changes. This elasticity could be inelastic or elastic. In addition, if the price elasticity of demand is inelastic then when the price changes the quantity demanded of that product will not change drastically while in the other hand, if the price elasticity of demand is elastic then when the price changes the quantity demanded of that product will change drastically so therefore the consumers reject the change in the price.
Finally, if the company wants to increase its total revenue then it must increase the price that charges to the business travelers and decrease the price that charges to the vacationers.
