That would be B) Customers
The answer is a definite NO. No one should EVER cash in their 401(k) to pay off debt. You will never be able to recover from the loss of compounding interest if you take out money from your retirement account. This money should be saved for retirement or EXTREME emergencies.
Im this case, Austin should take the amount of his raise and use that to start paying down his debt FASTER.
Answer:
a. greater than $3
Explanation:
If the marginal benefit is greater than the marginal cost, then, a rational person consumes one additonal unit of the product.
In this case, the marginal cost of an additional dozen of donuts is $3, therefore, the marginal benefit has to be greater than $3 for a person to decide to buy it.
Answer:
14.89%
Explanation:
Present value: $1,000
Future value: $2,300
Tenor = 6 years
FV = PV * (1+ rate) ^tenor
⇔2,300 = 1,000 * (1 + rate) ^6
⇔(1+rate)^6 = 2300/1000 = 2.3
⇔ 1+ rate = 2.3^(1/6) = 1.1489
=> Rate = 1.1489-1 =0.1489 = 14.89%