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lidiya [134]
3 years ago
15

What is the essential concept in understanding compound interest?

Business
1 answer:
Paul [167]3 years ago
8 0

Answer:

Explanation:

The main concept that needs to be understood is the idea of getting paid interest on money that you made from interest payments. This is technically the entire system of compound interest, you invest money into something that provides such interest. You get paid a percentage interest on that money, you then reinvest that payment back into the same investment. Now your next interest payment will be more due to the reinvested amount, and so on. This drastically increases the amount of money that is made over time.

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Which company is most exposed to the ups and downs of the aircraft engine industry? a) General Electric b) MTU Aero Engines c) U
Mrac [35]
I think it’s b but I can’t garauntee I’m sorry
6 0
3 years ago
Ainsley is a middle manager at a large, multinational corporation. She prefers to involve her subordinates in decision making an
lapo4ka [179]

Answer:

<em>The above statement is false.</em>

Explanation:

Max Weber claimed that if the staff actually did what they were told the company would do well.

He already presumed that large organizations would only be capable of functioning effectively if regulations and guidelines were developed, and that everyone accurately followed those regulations.

7 0
3 years ago
Melissa Price is a member of the sales force at Urban Fashions, a Houston-based manufacturer of women's apparel. Melissa is prep
oksian1 [2.3K]

Answer:

<u>Pre-approach </u>

Explanation:

In case of personal selling, the seller and prospective buyer come face to face, wherein the former tries to highlight and convey product attributes to the prospect with an objective of effecting a sale.

Under 7 step personal selling approach, pre approach refers to conducting customer research and planning goals for the presentation, which is to be be given to the prospect.

Under this approach, the salesperson fixes up a face to face meeting with the prospect in order to ascertain prospect's needs and wants. Post ascertainment of such needs, the salesperson carries out a presentation, informing the prospect about product attributes which would meet such needs.

In the given case, Melissa is preparing for her first client meeting, trying hard to learn about prospect and his organization i.e customer research. Thus, this is the pre-approach step of the personal selling process.

3 0
3 years ago
What are the major determinants of price elasticity of demand?
Greeley [361]

Explanation:

The four factors that affect price elasticity of demand are

(1) availability of substitutes

(2) if the good is a luxury or a necessity

(3) the proportion of income spent on the good

(4) how much time has elapsed since the time the price changed.

5 0
3 years ago
7. Kraft Company expects to give a dividend of $2 next year. Dvidend increases by 4 per cent require a 12% return. What will be
Nat2105 [25]

Answer:

$28.125

Explanation:

Dividend D1= $2

(Dividend is given at the end of 1 year)

Growth g= 4% or 0.04

Required Return r = 12% or 0.12

Step1- Share price of company A today

As per Dividend Growth Model

Share price =Expected dividend/(required return - growth rate)

S0 = Do(1+g) / (r-g)

S0 = D1/(r-g)

S0 = 2/(0.12-0.04)

S0 = $25

Therefore share price of company A today for given details will be $25

Step2 - Expected dividend at the end of 3 years

D4=D0(1+g)^4

( as we already have D1 which is one time growth multiplied, therefore to find dividend at the end of 3rd year we will multiply 1 Less growth multiplier to D1)

D4= D1(1+g)^3

D4 = 2(1+0.04)^3

D4 = $2.25

Step3 - Share price of company A in 3 year

Share price =Expected dividend/(required return - growth rate)

S3 = D4/(r-g)

S3 = 2.25/(0.12-0.04)

S3 = $28.125

Therefore share price of company A in 3 years for given details will be $28.125

7 0
3 years ago
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