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Liono4ka [1.6K]
3 years ago
6

If someone had $5,000 and wanted to place it in a financial institution, what type of institution and account would you suggest

to the person? What factors would you ask the person about before making your recommendation?
Business
1 answer:
Semenov [28]3 years ago
8 0
<span>If someone had $5,000 and wanted to place it in a financial institution, what type of institution and account would you suggest to the person? 
</span>-12 months or less then a savings account. 
<span>-2 year or more then open a no load mutual fund account with a financial institution such as Charles Schwab. </span>
-5 yrs or more then purchase some stock
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A monopolistically competitive market has characteristics that are similar to:a. a monopoly only.b. a competitive firm only.c. b
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Answer:

c. both a monopoly and a competitive firm

Explanation:

A monpolistically competitive firm is a firm that has the features of both a monopoly and a competitive firm

Characteristics of a monopoly in a monpolistically competitive firm:

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4 0
3 years ago
You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
deff fn [24]

Answer:

3.73%

Explanation:

The computation of the rate of interest that makes the equivalent is shown below:

As we know that

Present value=Cash flow × Present value discounting factor ( interest rate% , time period)

Let us assume the interest rate be x

where,

Present value of $400,000 is

= $400,000 ÷ 1.0x ^5

And,

Present value of $1,000,000 be

= $1,000,000 ÷ 1.0x^30

Now eqaute these two equations

$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30

(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000

1.0x^(30 - 5)=2.5

1.0x^25=2.5

1.0x = (2.5)^(1 ÷ 25)

x =1.03733158 - 1

= 3.73%

3 0
3 years ago
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