Answer:
$49,950
Explanation:
X = amount in account
Make (x times the interest rate) equal to the $9.99 you will need to earn to cover the fee.
.02%* x = 9.99
.0002x= 9.99 (Divide both sides by .0002)
x = $49,950
With such a small interest rate, you will need to have a large sum of money in order to earn enough to cover the fee.
Answer:
$3,667.44
Explanation:
The amount you would be willing to pay today can be determined by finding the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 4 = $25
Cash flow in year 5 = $25 + $5000
I = 7%
Present value = $3,667.44
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
B
Explanation:
Asymmetric information is an instance of market failure.
It is when one party to a transaction possesses greater information or knowledge than the other party. e.g. when a seller possesses greater information than the buyer or when a buyer possesses greater information than the seller.
Individuals know when they have a more healthy lifestyle while their insurers might not be privy to such information due to privacy laws
These consider many variables simultaneously and weight these according to a scheme that mirrors societal perceptions. It is a rating scale made up of several items, each of which is a separate question or statement that must be evaluated. Subjects will be able to explain their feelings about many aspects of their professions using a multi-item measure.
This will considerably increase the measure's precision and validity. As a result, multi-item measures are among the most essential and widely utilized tools in social research. Multiple-item scales are intended to sample a broader range of interpretations in order to capture the entire spectrum of a construct.
To learn more about multi-item, click here.
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