Answer:
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Answer:
Option "B" is the correct answer to the following statement.
Explanation:
The price elasticity of demand determines the flexibility of the volume needed to adjust the price.
The demand of an individual or market becomes inelastic if it will not adjust much to increasing prices, and it is elastic for an individual or market if the demand of a particular commodity will shift a lot as prices shift.
Answer:
The correct option is A, an asset's value is inversely related to the rate of return investors require to purchase it
Explanation:
The asset value is the initial purchase price determined by discounting the future cash flows from the asset to present values using a the required rate of return.
Ultimately, the higher the required return, the lower the present value of the investment whose price is being determined and the lower the discount the rate of return used in discounting relevant cash flows to present values the higher the present values.
Answer: $241,600
Explanation:
As this amount is a constant amount, it is an annuity. To find out the total amount after a certain period of time, use the future value of annuity formula.
Future value of annuity = Amount * [ {( 1 + rate) ^number of periods - 1} / rate]
Number of periods = 65 - 25 = 40
Future value of annuity = 2,000 * [ {(1 + 5%)⁴⁰ - 1} / 5%]
= 241,599.54
= $241,600
