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lana [24]
3 years ago
8

An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective,

yet the investor spends freely from the checking account and not the others. This behavior can be explained as _______________.
Business
1 answer:
77julia77 [94]3 years ago
5 0

Answer:

An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective, yet the investor spends freely from the checking account and not the others. This behavior can be explained as _______________.

Mental accounting

Explanation:

Mental accounting is the concept with which the management sciences explain the mental processes in which people perform categorization, evaluation, and coding of economics. It was proposed by Richard Thaler and suggests that people can perform it with easiness when they manage the accounting of their finance in their minds.

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Solution :

At every stage the formula used will be :

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After the junior year, Aunt Mabel's bank balance will be :

$=\frac{8000}{1.0925}$

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Aunt Mabel's bank balance after sophomore year will be :

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After the freshman year, bank balance of Aunt Mable's will be :

8060.677 + 6000 = $ 14,060.677

$=\frac{14,060.677}{1.0250} $

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If Aunt Mabel can predict the interest rate with accuracy, she will have to deposit :

$ 14.0606 + $ 9000 = $ 9,014.06

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Heritage, Inc., had a cost of goods sold of $68,314. At the end of the year, the accounts payable balance was $15,486. How long
loris [4]

Answer:

Account payable days = 82.74 days

Explanation:

<em>The payable days is the  average length of time it takes for a business to settle its account payable.</em>

it is calculated as follows:

Account payable days = average account payable/ cost of goods sold×  365 days

= 15,486/68314× 365 days= 82.7413

It will take Heritage about 82.74 days to settle its account payable.

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